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All Forum Posts by: John A Murray

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

Post: ADU - Garage Conversion Opportunity

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49
Hi Matt that’s pretty cheap at $70 sf. I’m converting my 400 sf garage and I’m shooting for about what you spent. The $4,600 saved in now-blocked developer fees, along with Long Beach’s low building and permit fees  sure will help.
Only question that remains is the new PV solar requirement. I’ve heard some say it is required and others say it’s not as it’s an existing building.
Anybody?





Originally posted by @Matthew Forrest:

Hey Naven! I like the idea of ADUs and parts of Long Beach are really changing right now so that could be a good location for a new unit! I converted an existing space (not a garage) and ended top spend around $70/ft, but this is the extreme low end of construction costs. I'm not a contractor and I have not done a garage conversion, but I would estimate $150-$200/ft. Obviously depends heavily on your finishes and availability of utilities. 

Post: First Investment - ADU House Hack (Tampa Area)

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

I would do the roof, paint exterior walls and trim, and replace the ADU bedroom carpet; if the tile looks decent leave it alone. Got to eliminate the pests for sure, and everybody likes a good neighbor fence. Not sure that the garage "wall" would increase the rent but based on your description it would be a nice addition.

Keep in mind that these will be rental units, and they're not in Palm Beach. Spend wisely.

Post: Stairs to Loft/Attic Access

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

Are you interested in charging more after you "add" a bedroom? Are more people living in your ADU acceptable to you? If both answers are yes then go for it. Perfect for a single parent with one child, don't know about 2 adult non-related co-workers on a corporate rental. 4 feet is not very high; see for yourself with a tape measure.

Post: ADU - Garage Conversion

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

People posting here have converted existing garages for as little as $37k up to $200k plus, depending on how fancy they got. 

There is a ton of information online and you need to thoroughly read all that's there. There's also a handful of books on this topic that are worth reading. There were 4 CA state laws that just went into effect that drastically changed the rules regarding ADU's/JADU's. Learn all you can.

You need to get with a contractor and tell him what you want to do so you can get a ballpark figure. You can go to Home Depot etc to price items you will need ie appliances, materials etc. All that will help you come up with a budget. 

You can save money by doing the contracting yourself, and more if you can do some of the work yourself.




Post: Off Market Deals in Orange County, CA

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49
Wow that's a nice looking unit. The ceiling, lighting and interior color really set it off. Thanks!

Originally posted by @Matthew Forrest:

@Peter Mai

I took a lot photos, but I don't have access to everything right now. I never really thought about it, but I should do a write-up or something of what I did and post it! Thanks for the idea. Here are a few photos for now. 

@John A Murray 

Good idea on separating out the costs! I'll include that in my write up.

Post: Off Market Deals in Orange County, CA

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49
Hi Matthew,
I think it's great that you did your conversion for $50k, you show what's doable. Would you be so kind as to share your conversion cost by category for your ADU? A poster here from Santa Maria converted his attached two car garage for $37k, $6k of that were impact fees. He did his own contracting and elbow greased a bit himself. Thanks!

Originally posted by @Matthew Forrest:

@Peter Mai

Unfortunate I don't know how to get access to off-market deal in OC other than you cold calling and sending letters (that's what I am doing in Torrance), but you might want to look around the forums for a wholesaler.

If you can't find a property to purchase under market valve, you might want to take a look at lowering your post acquisition costs. I look for properties that have existing space that is underutilized and not permitted to be habitable (in-law suite, granny flat, bonus room, hobby rooms, pool house). For my specific property I took a 700 sqft "hobby room" and converted it to an ADU for ~$50,000, which is significantly less than than a new build. This lowers the amount of capital required for the property and lowers your monthly PITI payment. Good luck searching!

Post: Getting in Contact with Neighbors

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

Invite them all to a free meal, just like many hucksters do. Throw them some kind of bone.

Couldn't hurt.

Post: Can I do a cash-out refi on my SFH with an ADU/back-unit

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

I believe that the major benefit from ADU/JADU is in the cash flow. I would not convert/build an accessory unit counting on it to increase the properties value right away.

Post: JADU attached to an ADU in California 2020

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

In cities where ADU's have a history there has been no over-saturation of them, which is why there was no heartburn by legislators to amend the bill with a sunset provision to the issue.

Thirty years ago in my city developers were allowed to knock down a SFR and replace it with a three-story 8 unit behemoth with vastly insufficient parking. Whole neighborhoods were ruined, with little to no concern shown by the developers. I don't blame any city for preferring the owner-occupancy requirement. Makes perfect sense given our history.

Post: Would you buy three homes on one lot ?

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

So are my neighbors in Southern California who rent one or more rooms in their SFR only- no ADU not a JADU-breaking the law?

If not then what’s the point of converting a room(s) into a JADU, other than legitimizing a rental unit?