All Forum Posts by: Sheng Ma

Confirmed with the city that JADU for the 1/1 and ADU for the garage is allowed as long as I work through bringing both up to code. Thanks for the input everyone!

Thanks for your response - that is encouraging and I am crossing my fingers the city sees it the same way. I have reached out to the city planner for further clarification, and will definitely utilize the HCD as a resource for help dealing with the city. Will update as I hear back!

Hope this is the right forum to post this. Currently in escrow on a home in CA that has a permitted additional 1bed/1bath (separate entrance) with an unpermitted kitchen, as well as an unpermitted studio garage conversion (detached). The recent legislation on ADUs has muddied the waters, and the local city planning committee seems to be interpreting it differently than what other municipalities have published. My original plan:

1. Convert the permitted 1bed/1bath living space into a Junior ADU by permitting the kitchen (as-built permit). It meets the sq ft, separate entrance, and all other requirements for it to become a JADU.

2. Convert the garage studio into ADU by requesting health/safety check - my interpretation of the legislation is that there is a 5-year grace period to get everything up to code as long as everything passes health/safety inspection. The unit is well-built but the prior owner did not pull permits to build it.

The problem is the city is interpreting the law to only allow JADU and an ADU based on the following:

Meaning that I would have to tear down the garage and build as a new structure in order to qualify it as an ADU in addition to the JADU. If this is the case, I may be better off converting the garage studio into an ADU and doing short-term rental with the 1/1 instead.

Has anyone been successful in permitting both a JADU and ADU on a SFR lot? Or any additional thoughts on how to proceed in this situation would be greatly appreciated!

 The house was originally built in the 30’s. It’s a flat lot, the issue is that whoever built the addition did not build a proper foundation, it’s on blocks. It’s been there for at least 15-20 years so I’m less inclined to think it’s going anywhere soon. The issue is it’s dragging the rest of the house with it, if it were to continue to settle. The foundation company wants to jack up the house and build a foundation for it as well as add some more piers to the other sides.

The quote is also from a single foundation company, from my searching it looks like a structural engineer is the first person to speak to when I actually want to repair it. 

Asking for opinions as I'm a new investor and have only a couple of deals under my belt, looking to buy and hold. Property is a 2bed/2bath with foundation issue (needs R&R) quoted at $60k - 4ft extension was built into the master bedroom many years ago and does not have a foundation (only blocks). No overt signs of bad foundation (drywall cracks, doors plumb, windows open fine) but due to settling the floor has a variance of 1-3" over the span of 10 ft. 

Additional permitted 1/1 unit which was built ~10 years ago and is in decent shape. Also has a decently well constructed studio in back of garage which is not permitted, may be able to get approval as ADU but not going to include in my calculations.

$445k purchase price

Repairs (mostly cosmetic/some termite damage/appliances) - $20k

ARV - $530,000

Rent - $1500 (1/1), 2/2 ($2000), total monthly rent $3500 + studio AirBNB if I can swing the permitting piece. Will plan to self-manage.

PITI - $2400 + 10% maintenance/vacancy/misc = $2700/month in expenses.

The deal obviously will cashflow and this is in a very hot market in CA, where cashflow generally doesn't happen easily. I don't have the capital on hand to fix the foundation issue right now (could stretch it if I deplete emergency funds but not willing to). My plan is to purchase and do the cosmetic renovations, ensure the unit is structurally sound, fix the foundation in 3-5 years and re-do the drywall/paint etc at that point. It has been structurally sound for at least 10 years since the addition was built, foundation company even mentioned in passing it'll probably be fine structurally for 10 years if I don't mind the sloping floor slowly worsening, but no guarantees on timeline.

Is this a terrible idea? Has anyone had prior experience with foundation issues? On paper it works out but I'm hesitant due to the scope of the issue and would love to hear what your thoughts are!