All Forum Posts by: Chris Paez

hoping to get make it to the next one, totally got swamped getting a rental turned over last month. Sad i missed it.

Im currently in the middle of a garage conversion on my rental property and I have a great guy that made my plans and got the permit for a fair price. Im looking at the cost for this one in particular to hit under 20k since it was illegally converted in the past and had existing sewer and water already hooked up. Besides the obvious things like kitchenette and bathroom, the city of LA requires you seal the slab with a moisture barrier and that you insulate the crap out of it because of a California title 23 requirement. I'd be happy to keep you posted as I go through the process and give you my draftsman's info. I am sub contracting jobs for each part of the process and admittedly it my first rodeo and its going slow... but the front house is rented so I'm at least breaking even while i get the pieces together.

 Just want to thank you for the clarity and openness. this simple chart has helped me a lot.

HELOC and refi are the sources I will be turning to to fund my ADU conversion right now. Part of me wants to use the HELOC first, then do a refi after construction is completed so I will have access to more equity, then turn that into a down payment for another property.

I will also be in a similar situation with in the next month. I am gonna fence off the yard so each dwelling has a seperate yard. I do want to get all the bases covered.  

^^^ thats the truth right there. you can wait and wait are just jump in and start swimming. @Matt R.

happy to stumble into this thread... Im in a situation that mirrors this in a way. I have a tenant moving out in a couple months. I have the potential of getting a new tenant and raising rent and be able to cash flow $600 a month or should i sell it and get the 200k in equity to then reinvest in other property? I keep going back and forth. Any thoughts?

just filled it out man, great job putting this out there.

that makes a lot of sense. in my head i was trying to keep that separate from getting tied up with new investments. But borrowing money is just borrowing, the better the rate the better off I am. I read your response a couple days ago but it didn't really sink in until today. Thank you so much. I think due to my current situation my best bet is to continue investing in single family homes. A much less out of pocket situation. 

So I have a rental property that has about 150k in equity, rather then cash out refi can I use this as collateral to fund a purchase and rehab of a mixed use building to grow my retail business (10 years old with proven growth record) and portfolio at the same time? I just found a listing that matches my criteria for 1.5m, I don't think my remodel would cost more the 60k. Is this possible or am I missing something? Any thoughts would be hugely appreciated.