All Forum Posts by: Mario Arellano

@Israel Garavito

Thank you Israel.

@Jason Leavitt

Thank you Jason

Hello, new investor and I'd like to get your advice / opinions / or experiences on this topic. We have a property in southern California with a good amount of equity that I was thinking of using for a HELOC. I would like to use the HELOC to buy a property and utilize the BRRRR method. The mortgage broker who we spoke to did not recommend a HELOC for our plan. He recommended to utilize a cash-out refinance on the property or classify the rental property as a 2nd home and obtain a mortgage with 10% down.

I'm leaning towards speaking to a new broker to obtain a HELOC, however, I would like to get input from the community.

I appreciate your help

Mario

@Oliver Perry

Thank you! I appreciate your response and contact recommendation.

Just wondering if SFR home prices are too high at this point to cash flow in Fayetteville. I have been looking at SFR and the prices appear to be increasing weekly. We have placed multiple offers on potential deals, but have been turned down. How are other investors in this area doing? What trends are you seeing?

Thanks

Does anyone have recommendations for an architect in the Fayetteville, NC area? Looking for duplex architectural drawings. 

I appreciate the help.

I appreciate the info Matthew & Dan.  I'm looking at costs per SF.  I also plan to reach out to contractors within the area.  I'm sure everyone is busy right now.

Can someone give a range per SF for new construction cost in Fayetteville? I’m looking at a small home design (500-800 SF).

We built an ADU in San Diego a year ago and we hired a drafter who specialized in ADU designs. His total fee was approximately $6.5K and the permit fees were $2.7K. I made the mistake of assuming a cost of $150/SF for construction and we originally had a 2 story design (1,200 SF). Once I began getting price quotes from contractors, the cost was $275-$350 per SF. Eventually, we ended up paying $300 per SF for construction. We also reduced the SF of the ADU to 499 SF. We paid cash for the construction and the 499 SF was b/c we would not have to pay additional fees to the city (ie. sewer cap, school, etc).

I'd like to do it again, but this time, I'd do the following:

1.  Use one of the pre-approved designs that are available from local cities and make sure that my city will approve their pre-designs.

2.  Pay a contractor for his/her time to review the plans and provide a more accurate estimate.  I noticed that when I asked for quotes, many contractors didn't want to take the time to provide a detailed line item estimate and I understood why.  

3. I should have done more research from the City on how their fees are determined and what fees are triggered based on the size of the ADU.

If you'd like to know more, you can send me a message.   

Oli, my name is Mario and my wife and are are interested in SFR investment in Fort Knox. How's the market? Do you recommend the area for an out of state investor? I appreciate any info.