All Forum Posts by: Douglas Wright

Does this Law only affect the Jr ADU's. I am doing my due diligence to add an additional unit to a property here in California and the city planner said if it zoned R1 you can have up to 4 units.

She also said that it cannot exceed 1200 sqft. So I could do 2 600 sqft ADU's and make it a Fourplex or 1 ADU that is 1200sqft and have a triplex.

What would be better?

A creative finance deal would be sending an offer to the owner with terms. Basically how much down you will pay, How much a month you will pay, and how long you will pay him for. It's called Owner Financing. 

Another one is to do a lease-option offer where you would Master lease the property from the owner for "X" amount of money each month. For 3 years normally. And you will be responsible for the tenants and the property. Since you have the option to purchase it, you can put in the sweat equity, increase rents, increase the value, then you find an end buyer which will pay off the owner and leave you with some $$$ or get qualified to buy it yourself within 3 years! 

Hey guys,

I am about to purchase my first investment property here in California. It is 2 separate units on a 0.5 acre lot (Which is pretty big) in Sacramento County. Main house is a 2/1 with tenant paying $1250 a month (Still paying during COVID). 2nd unit is a 1/1 that could rent for $850 minimum. Also this property has room to add an additional 1 or 2 units on the property to make it a triplex or duplex. So major Value add. 

My only concern is if this is the proper time to buy? Is the price of real estate going to crash? I feel like there is some uncertainty in the market with buyers and that could be a good negotiation tactic. Also, is there anyone that does developer work or ADU's / Modular Homes for the additional units I can put on the property. Any Advice would help!