All Forum Posts by: David A.

Floors are finished and lights, outlets and switches starting to go in

Exterior is finished and solar panels are installed

I have all my LA landlord policies with SafeCo via an independent insurance broker. Rates have been really good but never needed to make a claim so that’s just one side of the equation. 

My understanding is that you can only contribute earned non-passive income as the employee but you as the employer can contribute a share of the company profits.

Once the funds are in the Solo401k you can own real estate in the name of Solo401k but you can not do any work yourself e.g. property management or repairs 

So far yes, there has been only one change order for about 2-3k for the underground electric line running from the dual meter on the ADU feeding the existing panel on the main house where the contractor initially budgeted to have this overhead but the utility company required it to be underground. Once the build is completed we will reconcile to make sure this project was a win / win for both since this will be a long term relationship.

Hard to say exactly where to place this build, finishes are all mid grade non-custom but the vaulted ceiling is definitely a premium feature. Workmanship for all phases of the build has always been pristine. 

Solar panels delivered on-site ready to be installed on the roof 

Because this is a new structure built after Jan 2020 it must meet California net zero energy requirements which means needing to add solar panels. The solar system is going to be financed over a 6 year period through a local solar company separate of my contractor with a 8-9 year break even point. The cost will be passed down to the tenant in the form of higher rent as they will have a nearly $0 electric bill. Using a separate solar company required coordinating with the roofer and electrician but was worthwhile in the end to be able to finance the cost at some really cheap rates and I also had them finances the cost to re-roof the main home which was at the end of its lifespan. 

Hey Derek, I'm glad its been helpful. My contractor told me that looking back he under bid the job back in May 2021. He had accounted for peak lumber prices but had no way to know that every other material would also double in price and that labor shortages would mean his usual subs won't have time for this "small" job and would squeeze it in on weekends if they could. A lot of the work that would normally be subbed out ended up being done by him or his own crew. I have a second ADU build in the works and just the survey and engineering are coming up 30-50% more. With all that said, rents have also climbed and every project is pre-leased before I can even finish. My numbers are from a distant time, but the returns on an ADU are so lucrative that these higher prices don't really matter. More important is getting it built so you can start getting a return.

I'm always weary of the consultant title, especially since I haven't even finished the first one, but send me a PM and we can set-up a call where I can try answer your questions. If needed I can walk your site with you to help point out some the potential unique challenges you may face. I'm always happy try help out those getting started, no charge.      

Drywall, texture and interior paint finished. Wrapping up doors. Floors and cabinets next. 

Send me a PM with the details / timeline of your project but TBH I'm having a hard time having them commit to the other projects I have going on because they are so busy.