All Forum Posts by: David A.

Have you looked back into the permit history for the property to see if any point this was legally converted into living space? City of LA has all the permit history online so that's an easy place to start. 

If there's no permit history, I would just consider it as bonus space and would not take on the liability of renting it out. 

If you have the room, your best bet would be to build a detached ADU next to this bonus space as building new is cheaper than converting / retrofitting.

I don't know the specific challenges of your lot, but those bids sound about 100k over what I'm paying for my ADU builds in LA county but there might be a LA city premium since most trades are having to drive in from the valley or the IE. There's endless demand so these premium bids are becoming the norm now. The good part is the expected HP rents can easily justify even these premium build prices so if you calculate your returns I bet they are favorable even at a 300k build price.

This would be considered a regular attached ADU conversion, Junior/JADU classification only comes into play when there is another ADU on the property so owner occupancy restrictions do not apply.

You will need proper fire blocks between units, which depending on what's on the connecting wall (like a custom shower, kitchen cabinets etc.) can be pricey to tear out down to the studs, install the fireblock, and reinstall what was originally there. 

Also, appraisers will not see this as an increase in value as you haven't added any square footage and there are no recently sold comps to even use to price this non-standard use. 

In my experience new detached builds are cheaper than any of kind of conversion but this may just be my contractor. What you are describing sound more like "house hacking", which depending on how you structure it can be a legal gray area but will save you the cost and headache of going through the planning / permitting process needed for an ADU. Plenty of posts and podcast episodes on this topic.

These agents are seeing you as someone who wants to make low ball, low down payment, low chance offers so they aren't taking the time to address your concerns.   

It sounds like you and the two agents you spoke to are wasting each other's time. Time to move on, either find a new agent or a new market. You should be able to look at prices and see if there's a chance the market will work for your personal goals. It sounds like you don't value appreciation or have any plans for a value-add which is fine, but as you can see you are fighting an uphill battle in the market you chose. Ignore what private equity is doing, they have more / better resources than you do.

I saw you used a FHA loan in one of your examples, does that mean you planning on living in one of the units because this will also change your numbers.

Exactly this! I have a “referral code of conduct” before I share my GC’s contact info with close friends and I would never refer him out to a stranger I’ve never worked with personally in some capacity. The code of conduct includes the following:

- This isn’t a price negotiation or a bid to bring to the first guy to match. 
- You are ready to go with your project, that means you are on title not just under contract and have the funds ready to go.

- You will pay the same day the work is completed, by cash, Zelle or wire. 

Patio slider and wall insulation in. 

Drywall and roofing starting next week, getting closer to the fun part of seeing the finishes go in.

Windows in and material sourcing challenges

Got an email at 2:40 PM today that windows were en route to the site, and then a text at 5 PM with the pictures below showing that all the windows are installed. Patio slider is getting delivered and installed tomorrow. 

There's been a items that have been hard to source - the dual meter panel, some parts for the temporay power pole and now insulation as well as metal flashing for this roof design. The local HD Supply also looked pretty picked over from last time I was there.  

 Unfortunately, I'm not able to share the floor plan as this is ultimately owned by my architect, however, from the pictures you should be able to get a rough idea of configuration. I can tell you its possible to squeeze a 3/2 into this square footage but just expect that the bedrooms will be on the smaller side as increasing the square footage for the common areas was prioritized. No separate dining room, just an eat-in kitchen and also had to forgo an entry way closet. Minimizing hallways is also important as the only hallway also doubles as the laundry area with a stacked washer / dryer. We are also taking advantage of the outdoor space with a slider out to the backyard where the tenants can have some outdoor furniture as well.  

Framing and sheathing is complete

Also got to see the full effect of the vaulted ceilings in the common area with the roof all closed up and very happy with the outcome. Its a small space but it feels way bigger with the open ceiling. 

 Get another bid and you will know if it’s high for the circumstances.  FYI what you are referring is the panel, boxes are where the connections are made to the different circuits or lights / switches / outlets. He probably heard “I’ve got someone who can do some part of the job cheap” and gave you the “I won’t touch it with a 10ft pole” pricing.