All Forum Posts by: Will Barnard

Thank you Will Barnard.  All that you mentioned is valuable and things we are considering.  The building has not been brought into the 21st century (electric, plumbing, etc). So obviously, a reno would increase rent roll.  According to a broker who has been in the area for 20 years, new rents could yield a 40% increase.  This, however, at the cost of a reno, which is considerable.  The increase in the rent roll who cover the monthly cost of the loan plus about 10% in profit.  So, we are basically sitting in the same position, but with an updated building.  

@David Sequeira call the post office and say you added a unit to the property. Since it is the same address you will designate 1 unit A and the the other unit B. Have separate mailboxes for each.

I'll shoot you my guys info. Architect first and then GC for costs.

Currently looking for my first house to flip. How do I figure out what neighborhoods to stay away from ?

@Will Barnard

Thank you very much for the response and input. Specifically, I am working on getting plans approved for a 866sqft detached ADU unit in East Palo Alto, CA. Currently the plans are under review from the city building and safety department. Part of the approval process requires clearance from the sanitation district, which in this case is West Bay Sanitation District based in Menlo Park, CA. They are requesting I pay an impact fee of around $8,000 to obtain their approval. My architect and I sent them over assembly bill No 811 on ADUs and mentioned that the looks to be in violation of the bill quoting the following:

"Accessory dwelling units shall not be considered by a local agency, special district, or water corporation to be
a new residential use for purposes of calculating connection fees or capacity charges for utilities, including water
and sewer service, unless the accessory dwelling unit was constructed with a new single-family dwelling"

They responded saying that this didn't apply to the ADU and quoted the following

"(B) For an accessory dwelling unit that is not described in subparagraph (A) of paragraph (1) of subdivision (e), a
local agency, special district, or water corporation may require a new or separate utility connection directly
between the accessory dwelling unit and the utility. Consistent with Section 66013, the connection may be subject
to a connection fee or capacity charge that shall be proportionate to the burden of the proposed accessory
dwelling unit, based upon either its size or the number of its plumbing fixtures, upon the water or sewer system.
This fee or charge shall not exceed the reasonable cost of providing this service."

I haven't followed up yet. I was expecting to pay an impact fee but I thought the fee would be applied proporational to the area above 750sqft. In this case the impact fee should be access on 166sqft not the entire amount. Any thoughts you can share would be appreciated. Thank you.

@Angel Moreno - I ran across this scenario when I had a SFH under contract with a bad foundation. The structural contractor agreed to go through the property for $300. In addition, if I did decide to go with him, he agreed to take the funds for the walkthrough off the quote. If you do pay a contractor $200-300 to walk the property w/ you, see if they are willing to add it as a credit on the quote so you can at least get some of those funds back post closing on the property.

@Will Barnard thanks for the info! I’ve never tried it but was curious if this strategy worked.