All Forum Posts by: Charles Renn

Hi @Cho T.,

Good idea to add an ADU in Claremont. I recommend to call the city, to start, so you can confirm your property qualifies and which size ADU you can add. In addition, they may have parking requirements.

Hope this helps!

Sounds like you looked into it. Well done. Any luck finding out ADU regulations?

 Hi @Andrew Erickson, Sergey hit the nail on the head. While I'm not exactly familiar with SD zoning restrictions, I can refer you to an agent in the area who will know. Here in LA you can only build 1 ADU per parcel + a JADU which must be attached to the primary house.

Another thing to consider is SB9 which may allow you to split the parcel into two parcels. Once you have an address you should be able to call the local building/zoning department to see if the property qualifies.

These are the first two things to figure out.

Regarding ARV, this could be tricky, but most investors/agents will use the closest similar property that was sold in the area, 1 mile radius, preferably with an ADU, but total sqft may also be comparable.

Hope this helps!

It looks as though you've received a ton of support from many angles on this topic. I'll reiterate it's important to set your expectations. Like it's been mentioned in the thread already, with a 3.5% downpayment for FHA, it's best to expect to live in it for more than 2 years in most cases in the LA area. If you're flexible in moving east toward Riverside, there should be better deals out there. My team has had success recently. Let me know if you'd like more insights.

Hi @Kimberly Gomez,

Thank you for sharing your situation. It is still a hard market to find vacant duplexes. I imagine you're seeing that prices have steadily come up over the last 5-6 months. It sounds like you're open to most areas of Los Angeles which is great. @Jeff Schemmel has a good regarding cash for keys if you have some capital available. The big issue we are still negotiating is the extended moratorium in Los Angeles. It doesn't mean you can't negotiate to get tenants out, but given the market change sellers have been open to exploring these options. I do have a few follow up questions for you, if you're willing to share:

What type of loan are you qualified for?

Where have you been looking?

How long do you plan on living in this property?

Hope this helps!

Hey @Alex Ballesteros,

You have your answer already in the previous threads. I also recommend thinking about how you will finance your 2nd property since with an FHA loan, you'll be putting down a very small down payment. In 1 year you likely won't have enough equity to "cash out" for the down payment on the next property. Hope this helps!

@Anudeep Pradhan,

In line with the other posts here, and if I can add anything more, COVID relief has not been 100% removed from LA county rent increase moratorium. If this property is indeed in LA County, you'll want to seek professional advice from a legal source. I can provide a couple referrals if you'd like, otherwise a 12% increase is high for any CA city or county in pre-covid times. Hope this helps!

Hi @Jowan Chism, it's unlikely you will be able to submit an application to permit the ADU during the escrow process. Since you are the buyer in this case, you don't technically own the property yet. I recommend calling the building and safety department to ask this general question. Perhaps if the seller wants to start the process it might speed things up, but they may not want to open a potential can of worms. Hope this helps!

Hi @Chelsea Canning,

I agree with @Jeff Schemmel. It's an unfortunate situation to be in, but the sooner you stop the bleeding the better. I have a couple lawyer referrals that I can provide, if you'd like. I have heard a few different legal translations of the current laws and moratorium in the Los Angeles area, so it might be worth paying a professional to give you an official response with guidance.

Hope this helps!

@Nancy Ma, I highly recommend attending this meetup, or connecting with Alex!