All Forum Posts by: Surendran Palanimuthu

Hi, 

I would like to get some insights on building an detached ADU 500sqft (maybe a one bedroom or small 2bed/1ba). our backyard is facing the freeway. Im planning to do this adu project, mainly for the rental purpose. This house is in north sanjose, close to 680. I have been talking to contractors and some prefab companies. there is also another option to have an junior attached adu (300sqft) with small addition for bathroom/kitchen. this would cost around ~80K.

1. Detached adu will be more closer to the freeway than attached adu. risk of renting more days because it is close to freeway ?

2. Detached will be more spacious than attached. so, more rent, with financing, number are good with detached adu.

I would like to hear your thoughts.

Thanks

Hi David,

   Thanks for your response. I didn't know about the draftsman could do it. do you recommend anyone?
 Yes, Im planning to rent out existing living space. I know, it is small (good for single person to rent out. no ?). we also have space in the backyard and would also consider to extend the space for kitchen/bath. thinking about different options in this project. 

Hi Fellow investors,
Im planning to convert the family room (210 sqft) into attached adu as we are not using this room much. what is your thought on this ?
Im looking to apply for a permit for an attached adu (rental unit). so, looking for a licensed architects/planners/Engineers who can help me out with a design and discuss on possible options. Im looking for recommendation and please share experience if anyone have finished similar project recently in current situation. I hear a lot that permit process is getting delayed from the city. 

Thanks,

Surendran

Hi,

  I will be closing on a property. Im looking for cheapest flood insurance in north san jose area (CA). if you have any contact or referrals, please share the details.

Thanks,

Surendran

Hi,

Im looking for a inspection company that does inspection on roof, structure, foundation, pest control, plumbing, electricals, hvac etc. Normally, how much does it cost for all ? 

  is there anything else i have to do as a part of inspection contigency?

Thanks,Surendran

Hi All,

Im also a new to REI and currently analyzing markets.

@Brian Briscoe Thanks for the resource. I have bookmarked it. will be using it to analysis the markets.

@Account Closed How do we determine a neighborhood A,B,C,D class neighborhood ? at times, I also hear like B+, B- neighborhood. is there any resource to find this classification of neighborhoods or is it something we infer from the data like crime rates, average salary etc in that neighborhood ?

Thanks guys for your deep insights. I have learned a lot in this deal analysis.

@Tomas Roberto rodriguez yes, it is south of 98th st.

@Tchaka Owen I got the numbers from the investment company who is selling this property. they said that they are doing bulk deals so they are partnering with pm who is giving them good price. tats why, numbers are below the market price.

   I checked the rents in the area, i see couple of property renting at 1400 which i feel is above average. i wanted to be conservative on this. otherwise it maybe harder to find the tenants.

I have one more question with the property tax. when i check the Lubbock CAD page for property taxes. for similar valued houses, it was mentioned as $650 for property tax. but here, it is mentioned as $450, and i checked with selling company and guy said that this is tax they pay it after disputing. will there be any problem in the future after  disputing ? I did some google search, it looks like a extra work for disputing. again, if it is 650 and not 450, it is going to hurt cash flow. :(

Hi @Tchaka Owen, below are the info. I hope this helps.

Down payment - 78750  (25% down)

closing cost - 4000

total cash investment - 82750

tenant pays all utilities (electric, garbage, water)

vacancy - 3% - 81

management fee - 6% - 162

repairs/maintenance - 3% - 81

insurance - 80

property tax - 450

mortgage - 1341

total expense - 2195

rental income - 2700

Cash flow - 505 / Month

CoC = 7.3 %