All Forum Posts by: Ely Kavon

@Ryan Katz

Nice , congratulations

I've built a few of them in that area , the one we are talking about is in Winnetka.

I am just finishing one up in West Hills if you would like to come by and see it , it has a JADU and a 2 story 1000 sqft ADU

@Nina Ning Hi Nina, Where in California is your property and what is the utility company? I own a couple of properties in California with both LADWP and with Edison and I always give the utility companies a cancellation date (in order to remove my name) of the next day of when the lease starts. Also with both those utility companies if the bill is on the tenants name you are NOT responsible for the bill , and i am saying this from experience.

In your case the first thing i would do is cancel your account and remove your name.

Good Luck

I loved seeing your process , as an active investor in California I am looking to branch out to OOS since the prices here are ridiculous (even though are returns and appreciation are great) and tie up way to much capital.

Thank you

@Joseph M. I financed the property at first with a conventional loan with 10% down. and it originally appraised for just over what I paid for it. After the ADU was built I was able to refi and pull out 80% with a traditional loan and another 10% with a HELOC , and was able to pull out everything except the original down payment (60K) but it was well worth it because of the tremendous cash flow I have on the property.

The main house rents for $3700/Month the ADU sections are renting at $1,800 per unit including utilities(there are 3) so the property is grossing $9,100. total utilities, water , gas & gardener expenses are $400 per month (I have Solar on the property , so no electrical bill). PITI is right around $4,500.

It took me a total of about 4 months to finish the project.

I am currently finishing a new project that is very similar, but has a SFR , a JADU and a 2 story ADU. I am actually really proud of the new one, since I have built so many of these for customers in the last few years I have all my systems in place to make this new project a lot smother and much easier to manage once it is rented.

These are pictures of the units I rent separately. 

Hello,

Total purchase was $602,000 plus closing costs (appx: $8,000)

The cost for the ADU was $265,000 ( It is a 3 bedroom 3 bath with a kitchen and 2 wet bars which I rent separately , including Plans and permits (Appx: $ 15,000)

This was my first property when I did this, I paid for the ADU with lines of credits and credit cards and than refinanced and paid them off.

I noticed you said it sounds kind of high, are you located in the Los Angeles area ? because for us $600,000 for a property is not that high.

Investment Info:

Single-family residence buy & hold investment in Winnetka.

Purchase price: $602,000
Cash invested: $30,000

Single family rental , added an ADU

What made you interested in investing in this type of deal?

I was looking for a property that I could build a 1200 sqft ADU in the back

How did you find this deal and how did you negotiate it?

regular MLS

Hello,

I am a Contractor (we design and build about 30-40 units per year )and an investor who owns several properties with ADU's in Los Angeles who specializes in ADU's (both garage conversions and free standing) , & JADU's.

The best part of an ADU especially with a garage conversion is that most of the structure is already built, you do need to run its own separate sewer line , electrical and gas , only water is shared. ( you do have the option of adding a separate gas meter , but it is not required).

if you decide to build a new freestanding ADU , in addition to the obvious additional construction cost , you will be required to add solar panels to the new building ( came into law January 2020).

I would be happy to answer all questions anyone might have.