All Forum Posts by: Jason Meissner

What are the cities where the property being sold is located?

Hello Bill,

They might be harder to bite into outside of an over bid neighborhood. Here where TIC is appropriate if a resident fell out you would make more money reselling the unit because it would have appreciated. They exist here because people are clamoring to live there. They are on the market now selling and reselling with financing:

https://www.zillow.com/homedetails/346-N-Gardner-St-Los-Ange...

https://www.zillow.com/homedetails/4057-Sequoia-St-Los-Angel...

https://therentalgirl.com/tic/listings

Hey Jordan,

The best way to be quickly finding what you want is starting from what information you can use as good solid base building blocks. For example in DFW get a good understanding and confidence on the rental cost per unit type and what the sizes get where in the area. So if you see a single family or a duplex you can split again you will know where you are going. 

For example to know how much I have to work with, I start like this:

1. Find out what rents get there, confidently. (Info Available Here)

You can estimate a few things that will allow you to GET to a budget that makes things possible. 

2. If your 2 bedroom 2 bath units can generate $2,800 each. For any 4 units you have $11,200 in monthly rents. Now you have a beginning.

3. 70% of $11,200 is $7,840. Now you have the monthly payment on the mortgage for your cash out refinance. 

4. At $7,840 you can get a mortgage over $800,000. Now you actually have your first building block for planning. (Info Available Here: Mortgage Calc)

5. Now in our example area if you have an $800,000 budget to build or remodel a 4 unit building that has 2 bedrooms and 2 bath units each. If you come in under budget you cashflow.

Now as you are looking around you can see into what needs to be done in the right way. Can I get to 4 units rented out under $800,000 with this property? If yes move forward.

Whatever combination of units you find you can do the same as above and you have a solid first look. After that you substantiate your costs with extreme prejudice. But you know where you need to be.

I was checking on this one to see if it would be delivered vacant (yes) and they already have 20 offers. I bet the first are all cash in 3 days no contingencies. We have been successful here in the past here with 7 days cash and no contingencies (and a good reputation of closing).

https://www.zillow.com/homedetails/695-Earlham-St-Pasadena-C...

I worked with people here in Los Angeles that buy and refurbish properties for Tennent In Common or TIC sales and exit strategy. They had a tough time with people having opinions on gentrification and TIC. However, TIC is a real way people can buy in these neighborhoods at 1/2 or 1/3 the normal entry price

Are any Lender open to working through the full strategy of investing with the remodeler and then being prepared to finance the individual home buyers as well?

Thanks!

Zachary,

He did not live there for 24 months of the prior 5 years. He rented on the other side of town as a part of the separation and the divorce has been dragging on. They are finally finishing up and they want to sell the long time family house. No-one has bought or sold another home and no-one has ever claimed an exclusion in the past. 

q1:If a couple could choose to sign divorce papers before or after the sale of the home is there a better choice? 

q2: Is the capital gains rules on living together the last 5 years strict. The state wants a separation as a step to divorce and if a partner lived away from home how does that requirement work? One partner rented a room and lived outside the house beyond this 2 year requirement. Is this couple now exposed to capital gains at the sale?

RULE: 
"The seller must have owned the home and used it as their principal residence for two out of the last five years (up to the date of closing). The two years do not have to be consecutive to qualify. The seller must not have sold a home in the last two years and claimed the capital gains tax exclusion."

Thanks!

Quote from @Bruce Woodruff:

Checked out their website...looks very interesting! I like that they have built-in solar panels and batteries to power the home in the event of a Grid-down sitaution.

My concern would be: will they be valued as manufactured homes are? Y'know. lower price PSF? I guess we'll have to see as they gain some time on market.....

Agreed! The industry has to establish itself next door to standard construction in the neighborhood at the same price per square foot.

I think in a competitive neighborhood next door to standard homes I would plan to price a Dvele home like everything else. In the country alone with low competition relying on appraisals would be less predictable. 

I loved the Blu homes concepts and designs, it was purchased by Dvele.com and they are moving to Montana. Their website says they can have a home ready for a developer in 4 months once up and running next year. 

Has anyone out there built or bought a Blu home or Dvele home? 

My main issue is that they will be booked to capacity (happily) in a short time. When I make my second and third purchases I will be on some waiting list of bookings. This will defeat any usability for business purposes to me. 

I am kind of in Love with VERMOD right now. The value and usability of a well made low cost, very energy efficient home is real. 

What do you think?

Have a good week!

Hey Suganya,

The people outside your area are just reading the news. You will do great with an ADU in your area if you do a good job keeping your cost under control. The main thing to keep in mind as a true investor is, can you simply add square footage to the main property to get the same sale price if you're planning to sell the property. It is much easier to add SQFT than to add an ADU. Square footage on the house will translate more consistently in an appraisal. However...doing both is preferable so go for it. If you are planning on renting of course add the ADU.

Good Luck