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All Forum Posts by: Denette Rael

Denette Rael has started 2 posts and replied 7 times.

Post: First Flip in Bakersfield – Thanks to BP!

Denette Rael
Posted
  • Contractor
  • Los Angeles, CA
  • Posts 11
  • Votes 3

You're welcome Tanya. That would be great! Send me a personal message with your phone number and we can set something up!

Post: First Flip in Bakersfield – Thanks to BP!

Denette Rael
Posted
  • Contractor
  • Los Angeles, CA
  • Posts 11
  • Votes 3

Hello Tanya, Congratulations on your first flip!!! I'd say top things to keep in mind would be  Setting a clear budget Including; purchase price, repairs, holding costs, closing costs, and your profit margin. Follow the 70% rule; Buy price = (after repair value *70%) minus repair cost (this gives yo a safe margin. Don't overestimate AVR (after repair value) Use comps (similar, recently sold homes in the same area) within 0.5–1 mile, same size & style. Get quotes for needed repairs before you make the purchase this will help you determine if it's even worth your time. I live in Los Angeles would love to connect with you!

Post: General Contractor with years of experience

Denette Rael
Posted
  • Contractor
  • Los Angeles, CA
  • Posts 11
  • Votes 3

👷🏻‍♀️ I'm Denette a woman-owned and operated, licensed general contractor in Los Angeles with over a decade of hands-on experience helping homeowners build ADUs, convert garages, and remodel their dream homes. I’m passionate about high-quality work, clear communication, and making sure every client feels confident through the entire construction process.

Post: Ground Up Construction - know before you build

Denette Rael
Posted
  • Contractor
  • Los Angeles, CA
  • Posts 11
  • Votes 3

Planning & Design

What to ConsiderWhy It Matters
Future-ProofingPlan for growing family, aging in place, EV chargers, home office, and resale.
Orientation & SunlightMaximize natural light and energy efficiency (passive solar design).
Functional LayoutPrioritize flow: kitchen near garage, Bathroom near kitchen to cut down on plumbing costs, laundry near bedrooms, good storage.
Architectural Style & HOA RulesHiring a professional Architect will save you by letting you know what's feasible, and depending on the land acquire proper soil reports that may be needed. Ensure your design complies with local codes and aesthetics (if applicable).

Budget & Financing

What to ConsiderWhy It Matters
Realistic BudgetInclude soft costs (permits, fees), contingency (~10–20%), and hidden costs.
Financing OptionsConstruction loan vs cash; loan type affects timeline and builder payments.
Material Costs & InflationPrices can shift during a project — lock in where possible.

 Construction Details

What to ConsiderWhy It Matters
Choose a Reputable BuilderExperience, transparency, and communication are critical for avoiding delays.
Foundation TypeSlab, crawlspace, or basement—each has pros/cons depending on climate and soil.
Quality MaterialsAvoid cheap finishes that won’t last; choose energy efficient materials that are sustainable and cut down on the need for high utility bills like solar, insulation, dual pane windows, and cool life paint &shingles to name a few, & prioritize structure and insulation.
Change Order ProcessKnow how design changes during construction will be handled and priced.

Legal & Permits

What to ConsiderWhy It Matters
Zoning & PermitsMust comply with city/county laws — delays or fines if skipped.
Survey & Soil TestPrevents issues with drainage, foundation, or property boundaries.
InspectionsEnsure every phase meets code (foundation, framing, plumbing, etc.).

Energy Efficiency & Systems

What to ConsiderWhy It Matters
HVAC & InsulationImpacts comfort, energy bills, and home longevity.
Solar ReadinessPre-wire now for future panels or battery storage.
Smart Home WiringPlan low-voltage runs (security, sound, data) while walls are open.
Plumbing Layout & EfficiencyTankless water heaters, loop systems, and fixture placement save money long-term.

Interior & Finishes

What to ConsiderWhy It Matters
Flooring DurabilityMatch material to room traffic and moisture levels (e.g., tile for wet areas).
Easy MaintenanceChoose surfaces and layouts that clean easily (no white grout floors!).
StorageDon’t forget pantry, linen closets, attic space, garage storage.
Electrical & Lighting LayoutAdd outlets where needed and plan for enough circuits to avoid future issues.

Resale and Long-Term Value

What to ConsiderWhy It Matters
Neighborhood TrendsAvoid overbuilding for the area; check comps.
High-ROI UpgradesKitchens, bathrooms, insulation, curb appeal are key to resale value.
Low Maintenance DesignMaterials and systems that require little upkeep add long-term value.

Post: How much does a new kitchen and bathroom cost in a new construction rental?

Denette Rael
Posted
  • Contractor
  • Los Angeles, CA
  • Posts 11
  • Votes 3

Hi I'm a general contractor and the price range varies based on size and materials, unless someone is able to take measurements and have a list of exact materials you'll be using they won't be able to give you true pricing. Depending on your location there's a prefabricated cabinet and countertop store in Van Nuys that has the best pricing I've found in all LA, and they also provide a 2 & 3D design when you buy from them. Stone and Cabinet Supply. The cost of the cabinets also depends on futures like pull-out trash can, lazy Susan, spice racks, pull out drawers, and hardware, but generally start at $200+ for a prefaced shaker. 

Post: âś… Top 5 things to consider when build an ADU

Denette Rael
Posted
  • Contractor
  • Los Angeles, CA
  • Posts 11
  • Votes 3

Hello Dan, 

Thanks for the reply much appreciated. I was trying to keep it short and simple, and I agree with you on most things, but I must beg to differ when it comes to homeowners. 

    High Rental Income Potential;

In LA County, you can expect average ADU rents around $2,050–$2,550 per month for a one- bedroom unit.

  1. On a construction cost of roughly $150,000–$220,000, that translates to annual gross rents of $24,600–$30,600, or a 7–15% cash-on-cash return before financing.
  2. Strong Property-Value Uplift
    • Homes with an ADU in Los Angeles often sell for about 35% more than comparable properties without one.
    • For a $800,000 home, that's roughly a $280,000 increase in appraised value after adding an ADU.
  3. Solid Cash-on-Cash Returns
    • Even paying cash, you can net 10%+ annual returns on your build cost from rental income alone.
    • And financing the project can still leave you with an $8,000–$10,000 annual net gain after mortgage costs.
  4. Resilient Demand & Market Dynamics
    • LA’s tight housing market keeps vacancy rates low and rents high, supporting steady occupancy.
    • Regulatory reforms have streamlined ADU permitting, cutting wait times and softening approval hurdles.
  5. Tax & Incentive Benefits
    • You can deduct mortgage interest and depreciation on the ADU, improving after-tax returns.
    • Energy-efficiency or solar incentives can further lower net build costs.

Things to keep in mind if you already own a property and can't afford to buy another.

  • Upfront Costs & Timeline: Expect 9–12 months and $150K–$250K all-in.
  • Permitting & Utility Upgrades: May require separate electrical sub-panel, meter, or sewer hookups.
  • Maintenance & Management: Factor in insurance, taxes, and occasional repairs.

In Los Angeles's high-rent, low-vacancy environment, an ADU typically pays for itself in 6–10 years through combined rental income and increased resale value—making it one of the most compelling "home-owner" investments today. If we're talking about a "real estate" investor the obvious better investment is "New build" If you're experienced or want to maximize net worth through development, new builds offer more upside.

Thanks again!

Good luck to you too.

Post: âś… Top 5 things to consider when build an ADU

Denette Rael
Posted
  • Contractor
  • Los Angeles, CA
  • Posts 11
  • Votes 3