All Forum Posts by: Kamar G.

@Dan H. Correct. Zoned SFH and very common setup I am seeing these days.

As for valuation, I see no reasons why a Junior ADU would negatively impact additional housing unit. But to your point, a current project I'm about to start, I can tell you I had to

push back on ARR as the comps used by lenders were entirely outside of what I'm bringing to market. Fortunately lenders are starting to seeing the bigger picture and comp these additions more in-line with multi-family, rather than SFH which it is.

7842 Lasaine Ave, Northridge. You’ll see the appraisal that you may have access to and what it sold for was more than inline.

I don't agree with the above. Tagged as a developer, surely, you'd want there to be more development projects. While you did point out the negative aspects of a deal like this, you didn't really highlight the pros on the RE side and future investment, appreciation etc.

I've done two of these projects in the past 3 years in SoCal. One SFH, turned Primary house + JDU + Detached ADU. And an actual lot split which was a SFH on .85 acre now turned into two separate lots, with a duplex on each lot. Appraisals are now being compared to multi-family. Ended both projects well in the green.

Looks like I'll have my first one coming up in Brooklyn, New York... Great read. 

Thorney, you will then run into the issue I have/had. Anything over a two family, your capped with Fannie Mae restrictions on pulling out X amount of equity- Prob not enough capital based on what you plan to put down and purchase price of the house of course. I did the very same, FHA, lived in the multi unit for 12 months then rented it out. After that , best plan is to refi and get rid of pmi and maybe do a cash out at the same time. It all goes back to the price of the property.

 After research and all feedback... Much easier to pull money out of a single/2 family home vs. multi-family of 3 or more with the Fannie make restrictions. To get around, you can convert to lock and refi as commercial. Large buildin, more risk is what I'm going with. 

Thanks Che. I guess I was looking for an alternative method, apart from the guidelines. I guess in order for me to get the capital needed to move onto a larger project- selling seems like the most logical step.  

 Thanks Rob. I've owned it for just about 2 years now and feeling the pressure to buy another property in Brooklyn before its too late. 

Hi all,

I was looking to refi my current multi-family (3 units) a few weeks back only to find out there waa a limit restriction on how much I can actually take out? I beleive it was 650k cap? 

My first property just about 10 min from Barclays Center, and figured it was time to buy another property using the cash. I was told if it were a 2 family, I would have been able to pull out much more. My appraisal came in just under a million, but yet not much I can take out based on what I paid and what is owed due to the restriction. Seems like the only way to cash in on what I paid for the house will be to sell? 

Any advice would be helpful, thank you.