All Forum Posts by: Brian Larson

The other option might just be shorter term leases with more planned turn costs because if the leases are 12 months or shorter, the tenants lose all these protections.  Either way, none of these options sound good right now.

Thanks for all the comments on this topic folks. It will be interesting to see how this new law impacts the state.

Haha. That’s no gonna happen. 😊

@Account Closed - Thanks for the link. I was already fairly confident but I just needed confirmation from another person.

This is a great idea but I think you are correct about the liability.  I think most people have the area built as a "storage" area and once it is signed off on by the final inspector, they illegally convert it and install the railing, etc.

I look forward to hearing more thoughts from others on BP.

BP Community,

Can anyone share their experiences with 60-day no cause evictions for duplexes?  I have worked with larger apartment communities in the past but I need to confirm if there are any different rules that I might not be aware of in the case of duplexes.  Thanks.

@Jimmy Hendrix - San Jose is very pro-ADU (accessory dwelling unit). As of today, they are waiving many of the fees to build them. It is very possible to do a garage conversion. The cost are quite relative. You should speak to a GC for a better idea on that. As far as taxes go, you would be re-assessed for the new structure which means that the property taxes would increase (keep in mind most of the home value is the land in the Bay Area). Lastly, the increase in property value at this time is very subjective. The reality is that there are not enough comps for most appraisers still and they will most likely need those because they will treat the property as a SFH and not a duplex when they give an evaluation.

My advice is to build only if you think you will hold the property for a very long period because the income from the rental will more than make-up for the build cost and the taxes. Then, when the property appreciates and the appraisal process catches up to these changes, you will be in a very positive real estate position.

Also, don't forget that many of the School and park fees for San Jose are being waived in 2020. It is a great time to build an ADU.

@Anthony Giardina - Have you considered looking at SFH with an ADU or an option for an ADU construction? If you pick up something in the downtown area with an ADU, I think you might find some better numbers.

@Ramki D. - Sacramento should be better by a long shot, capital cities tend to have a more stable government economy. Plus, there are more people and more students in Sacramento.