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All Forum Posts by: John A Murray

John A Murray has started 6 posts and replied 142 times.

Post: Potential ADU/Cost? - Pacifica, CA

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49

Google the difference between an ADU and a JADU (junior) and you will find the answer. Without a full kitchen, but the ability to install an "effiency kitchen", you've got a JADU.

You might be able to find out about city planning fees and permit fees online ($2,000 and up), but after 1/1/20 you won't have to worry about developer impact fees. Have a contractor look at it before anybody from the city comes close to it and see what he says about "permit-ability".

Alternatively, I imagine you could just rent it out as is-calling it what you want, but probably going legal is the safest way to go.

Post: ADU/Granny unit utilities metering

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49

Emy like it-want it-or not, after 1/1/2020 we will have solar per the Title 24 2019 Energy Code going into effect in 2020. I'm in the same boat, and will also have to re-roof and upgrade my panel for the solar. Maybe you too? Fortunately for me SB 13 will halt the $4,600 developer impact fees, leaving only $2k +- permit/building fees. I imagine you will benefit from that too, google SB 13 for all the details.

Additionally I believe the new law allows for one ADU and one JADU; big difference between the two.

Post: 🏡🏡Accessory Dwelling Unit State Law just allowed up to 2 ADU's

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49

One JADU and one ADU; big difference between the two.

Post: California ADU business

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49

That's what I'm talking about David. I mean, I see all these really beautiful interiors, these $200k ADU's, but what you've got is all most people need. There are so many inexpensive ways of doing things. I plan to have some cool space saving things such as a "Murphy" kitchen table, desk and bed. Additionally I will have multiple skylights, lot's of window area and one maybe two French/sliding doors. I'd like to have a cathedral ceiling (drywall right under the roof rafter) and a big ceiling fan. There are cool things you can do with a concrete floor,concrete counter tops and concrete shower. I will be the contractor and do some work by myself, no hurry, and I hope to keep it around $30k.

David what did you learn that you feel is important/not important?

Here's my two car garage:

Post: California ADU business

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49

Matthew QT as in quiet say nothing. How could anyone determine that you are not just renting out a room? An efficiency kitchen would be easy to put in as well as a door leading outside. And if you have a bathroom adjacent to the bedroom you could close it off for exclusive use by JADU tenant.  I personally would have a hard time renting out a room, but if I had an "isolated" JADU I could do that.

Post: California ADU business

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49

Tim you are out of luck it appears. I don't see any way you could shift things around to get the results you want.

There are no multi-unit rentals in my neighborhood only SFR's. I asked an appraiser how he would determine value of SFU with an ADU and he said that not having comps is the problem. He said something like 20k to 50k for a basic ADU but that's nuts. Having a small unit that would pay half of your mortgage payment is worth way more than 20-50k.

This happens when people overbuild for the neighborhood. A buyer would have to come in with a fair amount of cash. Most already do as they are trading up and have equity in the home they are selling. I think the only immediate problem is if one were to get carried away and put too much money into their ADU and plan on selling soon.

David thanks. Now would you be interested in putting up a few pictures?

My wife will be in heaven as I'll make sure she comes along when we buy everything. Shopping and spending!

Post: California ADU business

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49

Bryan SB 13 removes the owner/occ requirement for 5 years; both can be rentals until then.

Post: California ADU business

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49

Tim if your 2/1 660sf is the ADU then you will not have developer impact fees charged(<750sf). ADU's over 750sf receive reduced impact fees (25% of SFR charge). SB 13 only addresses ADU's not SFR's.

Post: California ADU business

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49

Lucky timing for me. Yes some cities are really hammering people; that's what brought on SB 13. I believe we are making the right choice by doing legal/fully permitted ADU's. Bootleg additions etc do not get any value by appraisers and could be a major problem. My only thought about the QT was for a JADU since FNMA apparently won't buy loans with a JADU and an ADU on the property.

It's a 2 car detached garage conversion 18 x 20 = 360sf. $1,500 of the $3,500 is a refundable recycling deposit so total should be $2,000. My architect said the fees would be $3,000; we'll see. Long Beach is pretty pro-housing, but I will get this going asap, depending on my full understanding of the 2019 energy requirements. Not gonna see what new $ the city comes up with.

Do you have a breakdown of your costs? Sure would like to see figures, even ballpark ones. What are the main things you are glad you did, and what are things you did that you wish you hadn't?

Thank you.

Post: California ADU business

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49

David what did the county assessor assess your ADU at? I have heard that some assessors multiply the monthly rent times 100 and that is the value they apply. Did you save all your $37k of receipts? Could come in handy but I have no knowledge of the appeal process if they jam it to you.

Maby someone who adds an ADU AND a JADU should just keep the JADU on the QT from the city. Installing an efficiency kitchen can be done very simply; really renting out a room as a JADU is not very different than just renting out a room except having more privacy if you make it that way.