All Forum Posts by: Derrick Dill

I'm interested in converting a 2 car car-port to a additional dwelling unit in California. Wanted to see how viable it is to do this project. Carport looks like this: 

I realize there are a variety of factors (where utilities are, setbacks, city/county rules etc.), but as I searched BP/google couldn't find anything on the topic

Why don't you start exploring areas a bit further away? How about buying a distressed property for a good deal, fixing it up, then renting it? How about a short-term rental near a desirable area? (hospital, theme park, etc.) How about if you convert the garage of your same example you used into an additional dwelling unit and rent that out? or add a unit in the backyard?

^ best bang for your buck I'm going to go with Boxabl - Casita. Most of these other options saying 200k-300k. This is 50k, not including utilities. Will take > 1 year for delivery FYI. https://www.youtube.com/watch?v=H6Zf_AaiyC8

basically the new law only applies to townhomes that are SFR zoned, and all I've seen are MFR zoned so doesn't really do anything for me

I've been researching townhomes to possibly purchase and want to check in with them regarding if they can build ADUs, if I can convert them and I've got push-back from HOAs stating ADUs aren't allowed (California). AB 670 (New California law passed in August 2019) states: 
"any provision of a governing document, that effectively
prohibits or unreasonably restricts the construction or use of an accessory
dwelling unit or junior accessory dwelling unit on a lot zoned for
single-family residential use that meets the above-described minimum
standards established for those units."

How can I let these HOAs know that they're illegally prohibiting ADUs..? Wasn't looking to get an attorney involved for HOAs to follow the law, but I don't see other options.

Any ideas?

You mentioned you've been house hacking your primary for more than a year. Did you include rental income on 2018 and 2019? if so, this is 2 years rental income on your tax return. If not, I'm sure you have at least one year. Can do your 2020 tax return ASAP and start house hunting Aprilish 2021 with 2 years of rental income included.

@Mark Dutton I got houses built in the 1920s. Houses being sold every week in San Fran from 1900s. Wouldn't let the age deter you from buying, but a good foundation/roof/bones is important, home inspection to let you know what you're getting into.

Of those 3 options, I'd take the detached house. Condos/townhouses both have HOAs, HOAs from my experience go UP in cost, not down. Home owners also limit your ability to make changes to your place: Want to add solar? check with your HOA. Garage conversion? check with your HOA. With that being said there are several investors on BP who have been immensely successful with condos/townhomes.

I'll start by saying if you pay off that auto loan or any other debt/loans will help your DTI. You can take out a 401k loan (doesn't count against your DTI) and pay off another loan (thus exchanging loans, but 401k loan doesn't count against DTI). Find a lender that includes future potential rents (ex. one unit rents for 1000$, should be included in their calculations for your DTI). Can do a balance transfer CC, transfer the balance for a year or 1.5 year and pay it back (this assumes your financially responsible)

@Account Closed Renovation loans should do the trick as well for an ADU: FHA 203k, homestyle, CHOICErenovation