Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: John A Murray

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

Post: Newbie in Oakland CA

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49
Originally posted by @Matthew Forrest:

@Matt Eade

Welcome Matt! Great name! I built an ADU and invest in multifamily. You should run the numbers and go with whichever fits your financial goals. Let me know if you're interested in hearing my experience with the ADU!

Matthew Forrest I know I speak for others but as I am starting a garage conversion ADU shortly I'm very interested in hearing about your experience.

Cecelia you too.

Thanks in advance!

Post: Fresh Built ADU, Looking for Refi info...

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

I agree with Barbara, to rent it out for the maximum you can squeeze out of it for a minimum of six months. You'll probably have to go with your lenders appraiser, but they should know the best one to engage.

Very nice looking ADU!

Post: California ADU business

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49
Originally posted by @David Maldonado:
Originally posted by @Orlando Perez:

Hi David did you get your place appraised? If so then what was the value? Thanks!

Post: City finally adopted ADU laws, time to get to work. Need advise

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

Awesome I'll take it! 

I had a 15 minute (free-thank you Maxable) phone consult with her (I think it was her) about a month ago and she wasn't sure about the new/existing issue regarding solar. That was of much interest to me; Maxable's website had a page that recommended permitting in 2019 because solar was required on ADU's effective 1/1/20. She said she'd look into it and get back with me but never did.

I still may put solar panels on the house down the road, to include the energy production needed, that the ADU consumes.

Post: City finally adopted ADU laws, time to get to work. Need advise

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49
Originally posted by @Chad New:

Additionally, If your city does not have their own individual ADU compliance rules signed into law and regulations by Jan 01, 2020 they must default to the state rules with no additional requirements.

John, my understanding was similar to yours regarding parking, the property I just purchased in Anaheim with detached garage is less then .5 miles from public transportation, yet my initial ADU report from Hausable states I need one covered parking spot. I am not sure this is true. I am positive that Anaheim has not updated its ADU requirements as most of the employees there still think I will need four 18' parking spots in the driveway. When I told the city employee this will not be a requirement come Jan 1 he stated they haven't received training on new laws. What is your take on the covered parking spot?


Hi Chad,

State law trumps local rules. I have a 4 car driveway and can almost throw a baseball and hit a bus bench, so I was good anyways. So are you January 1st.

I'll be visiting the Building Department soon after the first to run my ADU by them. When I did this two months ago they knew nothing about the new Title 24 energy requirements (mainly 1.5-2kw PV solar mandate roughly $4k after fed tax credit) that go into effect January 1 nor the new assembly bills (SN 13 then as yet unsigned). I'm hoping they haven't come up with any new way to get in my wallet since I now won't have to pay the $5k impact fees (thank you SB 13). My building permits etc will total $3,500 with $1,500 being a fully refundable recycling deposit. I'm getting off very lightly. I'll report back after my visit.

Post: City finally adopted ADU laws, time to get to work. Need advise

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49
  • From the "Maxable" website (California legislation):
    • Quick Run Down

      The key takeaways?

      No minimum lot size requirement

      Setback requirements will be brought down to four feet (new construction only)

      No impact fees for ADUs under 750 square feet (graduating scale over 750 square feet)

      No owner-occupancy requirement for 5 years (will be revisited then)

      HOA are no longer allowed to prohibit ADUs

      An ADU and a JADU are allowed to be built on the same property

    • No parking requirement if your property is located within half a mile from public transit

    SB 13

    Parking Just Got Easier

    Let's start with the heaviest bill. While there are several components to SB 13 that make building an ADU easier, there are a few main points that are essential to know.

    Prior to this bill, homeowners were required to replace parking spaces on the property if they were converting or demolishing their garage, carport, or covered parking space. SB 13 eliminates this dreaded parking requirement.

    To clarify, those who are located more than half a mile from public transit will still be required to add a parking space. However, your existing driveway can satisfy this requirement.

    Now you don’t have to worry about the added construction costs that come with adding a new parking space. Plus, you’ll save a lot more time.

    Bye Bye Owner Occupancy Rules

    california adu bills

    Maybe you wanted to build an ADU to travel the world, like this adventurous Berkeley resident, but strict owner occupancy laws kept you stuck? With the changes, cities are no longer allowed to require owner occupancy for at least 5 years. That means you can vacation to your heart’s desire.

    SB 13 also puts pressure on your city's permitting office to pick up the pace. The bill slices the ADU application approval time in half from a horrendous 120 days to a more reasonable 60 days.

    Impact Fees Waived!

    Finally, say goodbye to impact fees if your ADU is less than 750 square feet. If your ADU is over 750 square feet you're still in luck. Fees will be made proportional to the square footage of the ADU. This will make the fees significantly lower than what they were prior to SB 13 being passed.

    AB 670

    HOAs Can’t Kill Your ADU Dreams

    HOAs were one of the only governing bodies that had the authority to overwrite state laws. That means HOAs were allowed to prohibit homeowners from building ADUs on their own properties.

    This was a common issue that we’ve found many people had run into. There were more than 4 million homes that were eligible, but so many HOAs refused.

    However, with AB 670, HOAs no longer have that power. While the organization is still allowed to establish guidelines such as minimum and maximum unit sizes and minimum rental terms, they are not allowed to prohibit a homeowner from adding an ADU on their properties.

    Through the amnesty program, AB 670 also addressed the common issue of illegally built ADUs. If you have an ADU on your property that was built without the required permits or inspections, you now have five years to bring your structure up to code as long as the issues are not related to health and safety.

    AB 671

    california adu bills

    AB 671 lowers costs through government incentives for building ADUs with affordable rent.

    The bill would require the Department of Housing and Community Development to develop a list of existing state grants and financial incentives for operating, administrative, and other expenses in connection with the planning, construction, and operation of accessory dwelling units with affordable rent.

    The department is now required to provide this list on its website by December 31, 2020.

    AB 881/ AB 68

    Both of these California ADU bills, have very similar language and declare essentially the same thing.

    Terrible Setbacks No Longer an Issue

    A big obstacle that so many homeowners face is the extremely strict setback requirements. Luckily, AB 881 would impose much easier setback requirements to cope with.

    No Minimum Lot Size Requirement

    Also, a big plus from this bill is that there will not be a minimum lot size requirement. As long as your property follows all other requirements, your lot size will no longer hold you back.

    Two Units on One Property?!

    Perhaps the most exciting aspect of these bills is that now you can have both an ADU and a JADU on your property. A JADU is a small living unit created from a bedroom within the primary dwelling unit.

    This opens up so much potential for large families to stay even closer to their loved ones.

    california adu bills

    AB 587

    This bill was structured specifically to help those in need of low-income housing.

    If the property is owned by a nonprofit corporation for the purpose of building and rehabilitating single-family or multifamily residences for sale for low-income families, then the ADU is eligible to be sold separately from the primary home to a qualified buyer.

    One of the main reasons we've seen such a surge in California ADU bills is to combat the housing crisis. A bill like this is crucial to achieving that goal.

    How are these bills being enforced?

    We know many cities may not be happy to adopt these changes and may refuse to honor these new bills. The fact of the matter is that these bills are now state law, meaning if your city is refusing to make the switch, you have a right to fight back.c

    Luckily, the Housing and Community Development Department (HCD) is taking the reins in enforcing the new state laws. If you find your city is not complying with the changes and are refusing to allow you to build an ADU, you may contact the HCD who can then pursue legal action.

    Additionally, the HCD will be checking in with each and every city to make sure laws are being followed.


Post: Why is building an ADU in Denver so expensive?

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

previous post:

David Maldonadoalfaro Rental Property Investor from Santa Maria, CA

replied about 1 month ago

I personally believe investing in an ADU in expensive markets in California is a great idea. I would wait on it until January of 2020 when sb 13 kicks in and you'll save a lot of money on the permits. How many quotes from contractors have you gotten? 100k just seems too high especially for a conversion of an existing area. If you're handy and have time, I highly recommend you do some of the work yourself and you'll save a lot of money. I converted my garage into an ADU for 35k (with permits) I outsourced and managed the electrical, plumbing, drywall and texture. I'm planning on adding a detached 2 bed 1 bath adu on the right side of my home early next year.

Just adding to the mix. Of the $35k total cost, David paid $6k in Developer Impact Fees, which under new California Law effective 1/1/20 will be eliminated for ADU's under 750sf. Above 750sf the fees are charged at a progressive rate. I've been waiting for the new laws to go into effect to convert my detached 360sf garage. I will save $5k in impact fees but will have to have PV solar (3kw) installed on the roof, at an after tax credit cost of around $6k. I'm going to try to beat Davids $37k by doing some of the finish work and managing the subs myself, like he did.

Some cities in California were charging exorbitant impact fees, as high as $50k for an ADU, which spurred the legislature to reign them in.

I have a neighbor who added 200sf to his existing detached garage and converted it (600sf) with "builder" quality finish for $57k. Another neighbor built a 700 sf ADU from the ground up, sparing no expense with high end appliances and "custom" finish for $180k.

Post: City finally adopted ADU laws, time to get to work. Need advise

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49
Originally posted by @Peter Mai:

@Varinder Kumar

How is your project coming along?  Would love to hear more about your experience.  

Few concerning factors for me regarding Buena Park:

"5. Dwelling Size" - limited to 30% of the primary residence. I'd like to build/convert at least a 600 sq ft ADU, which would require a primary residence of 2000 sq ft. Not ideal here.

"c. Minimum rental term shall be no less than 30 days;" - you will not be able to do AirBnb

"14. Ownership and Occupancy—Owner Occupancy Required." - this rule here makes it a dealbreaker to be an investment property.

Hoping they will be more lenient in 2020... going to research more into the best City to do this in for Orange County.  Let's connect to share ideas and experiences.










Peter new state laws going into effect 1/1/20 change many things. The only regulation that still stands in BP that you mentioned is that BP can ban short term rentals. The owner/occ reg is banned for four years, and I believe the size has been addressed to allow for larger ADU's. Check out the new laws.

Post: Duplex ADU in California

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49
Originally posted by @Drew Leo:

My group is in Socal, we got a property with some yard with a pool and planned on removing pool to put a modular ADU on it . Hired a large, well-researched business that does about 2 large ADUs per month. Even with the state's new adu regulation, my city in Walnut enacted a loophole with minimum lot size of 18K sqft and set backs extremely long (property line to housing wall). Property was near a bus stop (5 residental blocks away), it's on a corner so we had ample parking on 2 sides. City didn't allow the ADU company to proceed. One angle that may work is constructing attached addition. Our city has some hills and retaining walls or walls in general are very very sensitive to our city inspectors so that's another hurdle you may be weary of. We're out $3K for the process, planning. (It was suppose to be credited to the project).

Drew check this out too, the regulatory state agency for ADU's:

https://www.hcd.ca.gov/policy-research/AccessoryDwellingUnits.shtml

Post: California ADU business

John A MurrayPosted
  • Rental Property Investor
  • Long Beach, CA
  • Posts 145
  • Votes 49
Originally posted by @David Maldonado:
Originally posted by @Orlando Perez:

@Chris Mason 

That's what I'm going to find out soon when I order an appraisal. 

Hi David was the appraisal performed? If so then what was the value?