All Forum Posts by: David A.

Hi BiggerPockets Gang,

By way of introduction - my name is Adrian and a new BiggerPockets fans. Learning a lot from this community. I started out from a humble beginning as an Immigrant from Indonesia and currently living and working a W2 job based on the Southern California market. I consider myself as a beginner when it comes to real investing. Currently with 3 rental properties (2 in Houston and 1 in LA) and currently working on a flip that are going wrong in every direction. Good learning experience though! 

I am investing in real estate with a goal of financial freedom and ability to support my family. With my family getting older and the intent to have more flexibility my life today's life to spend time with them, the idea of investing in a more cashflow friendly market definitely is something I am considering (understanding that appreciation factor will be limited). I am looking for advice from this community as to potential market that I can tap to and recommendations on great agent on this market where cashflow can be realized. Looking to get in with 100k to this market and hopefully expand. 

Just here looking to network with agent in these markets, fellow investors, and if I am lucky finding mentor in those markets to grow together and be accountable in this journey together.

Thank you so much for reading this post y'all and looking forward to hearing from you all and networking.

Adrian

Unfortunately, I can`t proceed with SB9, because it is not owner-occupied property. There are some loopholes in Covina, Corona, and a few other Greater LA cities where you could build 2 ADUs - 1 attached up to 50% of the square footage of the main house and 1 detached.

I spoke to 1 appraiser and his opinion is:

- to do not overbuild and overspend for 600-700 sf ADU. The rent increase won`t justify the overspending.

- ADU will bring 10 times of annual rent to appraisal.

And ADUs tend to bring 50k or less than their cost to build.

I spoke with my realtor and he suggests building as many units as possible, but he is even older than me and:

- too conservative

- believes that all immigrants live in compounds, multi-generations families ratio will increase

- construction still costs a dime and nickel if you hire unlicensed guys and do owner-builders permits

- he rocks in East Bay Area and is not very familiar with LA.

Regarding conservative rents: the lot is almost 7000 sf, tons of street and off-street paved parking, but the property is located in not the best area of Covina.

 Yes, he’s providing no parts. He’s only charging for labor. He says the best he can do is $600 each.

I’m trying to get my head around electric vehicle choices and if the math now makes sense with $5 gal gas, or $7 diesel. I’m only looking at if the math can make sense, not environmental issues.

So I currently have a 2003 f150 4.2 v6 2wd, its gets around 15 mpg, and has 250k miles, so it’s eating parts pretty regularly. I burn around 50 gal per month, which right is about $250. I’m guessing oil changes and etc add another $50 per month. No clue how to estimate repairs.

I think as long as the gvwr is at least 6000 lbs, I could take the accelerated depreciation. Add that to the $250 in gas, etc. minus some estimated electric added usage, then add in the monthly cost of a similar gas version. If gas goes to 8 to 10 per gallon, I’m ahead, I don’t think the current government will let it drop down.

This would be a mostly a local vehicle, as my wife’s Honda CR-V would used for trips.

Does this seem like a sane approach? Or how would you all look at it?

Thanks for posting this David. Is solar still required for new build detached ADU's? I thought I read somewhere recently that it is not required. I'm in the San Fernando Valley and making plans to build an ADU in my backyard.