Hey Franklin,Generally, if a new unit is created through substantial rehabilitation or conversion, it may be considered a "new construction" unit and therefore exempt from RSO rent control.

Hi All,I'm in a position where I am Mid-Construction on a new home build and need financing to complete the project.

So we make developing make sense for investors.We're also leveraging modular construction technology and standardizing traditional construction processes to develop faster and easier than ever before.Would love to connect with anyone curious about ADUs, permitting, SB9, the entitlement process for vacant land, or just residential investing in general!

The cap rate on this property is just over 7%, leaving plenty of meat on the bone for any investor!

I have a $320k HELOAN at 9.125% that I used to construct an ADU in my backyard.

Took one booking, the tenants broke contract by bringing a pet (dog hair and a bone were left behind), and Landing was not exactly pleasant to deal with in recouping security for extra cleaning and damages (dog used the ceiling fan remote as a chew toy). 

Construction can have unforseen costs, construction loans for rounds of funding can be more expensive over time, rent markets can drop, vacancies in market can increase.Typically entitlement phase of land most risk, followed by development, followed by vacant building turn around, followed by half vacant building, followed by mainly full building with value add component, followed by brand new building with market or below in place rents and everything new with good location.Along that spectrum of course you go from heavy equity upside potential to mainly just the cash flow return and hopefully price appreciation over time.Investors have to decide on the spectrum of their risk assessment to capital over what period of time how they will allocate between all one type of investment or multiple and what percentages.

Hello Matt, are you only doing prefab wall panels, where they are assembled before delivery, or are you going to the next level with a full Prefab modular construction, where the units are completed at a factory and relatively minimal work is completed on site.One issue I have heard on the modular construction is the manufactures are sold out for this year.You might want to check out www.VuhausLLC.com/models they are doing high end modular construction.

Maybe the construction costs would end up being the same no matter how it’s done, but I haven’t done much new construction last few years, I’ve just been buying existing stuff, so I just don’t know. thanks!

I will post the before and after pictures, hopefully it can help anyone starting this journey, we are new investing out of state but NOT new to handlining construction project out of state for clients, looking forward to the challenge!!!!