All Forum Posts by: Kendra Allred

There are people still buying and selling. The luxury market in many areas has seen an influx of homes which are taking longer to move (800k plus) due to that fact that many lenders are no longer offering Jumbo loans and if you come across one that is- the minimum requirements to obtain the loan have greatly increased. Homes in the median price range of affordability still seem to be moving well. Buy & Hold investors can get some great deals right now and if you are fortunate enough to have saved your pennies the ability to negotiate the price of a higher end home is going to be more likely because of market saturation in many areas (Poway is one area that seems to be moving relatively quickly regardless of higher price points.)  

If you can flip without having a long hold time prior to resale and can get by without needing a permit it seems the the opportunity to make things happen in the median to lower price ranges is still viable. The permitting process timeline has lengthened because of COVID situation so I'd be wary or at least account for that in an offer price.

Buy & Hold is generally a less risky strategy as you would hope to purchase at a good price(min 10-15% below current value) and be able to absorb any market fluctuation over the long term if there were to be a market adjustment.

These are just things to consider and unfortunately there's no way to say for sure. Just like with many things there is a point were higher risk typically equates to higher reward. In times like these a conservative approach is common but while that typically shields from large losses is also limits large gains. There's always going to be some degree of volatility but the most we can do as investors is learn everything we can and hedge our bets accordingly. 

Thanks @Dan H. for all the references to ADU regulations. There's always something more to learn in real estate.

Thanks @Justin R. for the fire and safety explanation, I anticipated that may have had something to do with it, didn't know specifically about the whole hour thing so that's informative- and the tid bit about the cinder blocks...that's pretty cool I'll definitely look into that- could be a potential work around for a smaller space in the future.

@Dan H. Thanks for the suggestions. It is in San Diego, the original square footage of the home is just over 600sq ft and the lot is 1,150 sq ft (you didn't read that wrong its xs.) Home is in OB. 1 Bed 1 Bath on the Tax rolls. 

Not sure if there is a minimum sq footage requirement for a Junior ADU which I think may have been part of the issue.

The current structure does not adhere to the required setback specifications which is why it will have to be demoed as per the city. New Plans reflect permitting of a 2nd bedroom within the existing footprint.

Any input on minimum square footage would be helpful.

Dealing with a property that has code violations resulting from the build of an illegal addition. To remedy the issue the addition will have to be removed as the lot is small and does not pass the set back allowances required to add to the floor plan. When resolving these issues do I have to use a city provided and approved contractor for demolition or can I just have my contractor complete the work?