All Forum Posts by: Jason Hsiao

Yes you can @Jin Zhang- up to one JADU within the primary structure and one detached ADU

My perfect set up is 4br/2ba or a 3br/2ba with say a family or large den that's > 1,400sf and a detached 2 car garage @Sharon Cheng @Jacqueline Chang. This way you can turn a SFH into 3 units and live in whichever one makes sense and the highest returns. Happy to share more details on what I look for.

Why is the house and ADU two separate properties? If they're both under the same APN is that still viewed as two separate properties?

For example if I'm buying a house with a detached garage it's not viewed as separate properties right, it's part of the house?

Yes, that's improper choice of word on my end. When I say "add" I meant convert existing non-livable space, not as in addition like adding on square footage to the property.

@Jonathan Taylor geez they made you convert it back to a garage first?

Yeah these things take some time and patience but the pay off is worth it. These days deals are made not found.

@Michael Parmenter

You don't have to live in the ADU like I mentioned. Some cities have owner occupied requirement some don't. Those that don't you can rent out both units and cashflow that way

Yes you can do JADU in the primary dwelling @Fred Bastan, as long as it's < 500sf, has a separate entry, separate bathroom, and kitchenette.

You can also do an attached ADU if the space is too big or you want to avoid the owner occupancy requirement like @Dan H. mentioned.

You can absolutely cashflow in California @Peter Pettersson. The ADU laws make it a lot easier now. Granted, it's still gonna be hard/impossible in some markets like say Newport Beach. I'm big on Long Beach. Just walked a property in Baldwin Park that cashflows ~$1,000/mo. A friend of mine found an absolute gem and he's doing 5% down his CoC is like 24 or 26% something crazy like that.

If you're doing a garage conversion that number is pretty high. You should be able to do it w/ $75k and that's if you're unlucky and having to do new sewer line and other bigger upgrades.

I'd avoid doing 203k or any FHA product if you can. BP's advice is not always one size fits all. FHA financing offers often goes straight to the recycle bin in big metro markets like LA. Your offer will be much stronger if you do 5% down with PMI and it's not even that much like, $150 or 160/mo.

Interest rate is a bit high but it's ok being conservative. I was recently quoted around 2.675% owner occupied.

Home insurance if that's monthly that's too high... depends on your coverage obviously but prob not even $500/yr.

Other than that, it's pretty close. If you rent out the main unit it covers your mortgage that's already a huge win in some people's eyes.

Be sure to look and vet for a good architect as well. Good GC or construction team is one thing. If the plans are garbage it will take you much longer to get through planning and the guys are going to have bunch of RFI's and delays clearing things up after you break ground.

If the numbers make sense go for it @Jon H.!