All Forum Posts by: Michael Ndjondo makadi

Question to more experienced investors and/or appraisers especially those in San Diego 

I am currently working to complete the renovation of our first property which is one its kind since it is currently a SFH but the lot zoning permits for 2 more units. So the plan was submitted for the addition of 2 units to the city and has been pending since. I found out not long ago that there is this new regulation according to our architect that allows for addition of 2 ADUs. That got me thinking since I know that for ADU, the developer impact fees are eliminated and thus can save us over 20k. But what I don't know is the implication on the appraisal after completion. We're using BRRRR in order to keep buying and adding 2 units in the lot was one the biggest attraction of this deal. So my question is how are ADU treated compared to separate units when it comes to appraisal? As an investor, all I care about is ROI which mean I won't mind paying the extra permit fees if the separate units will generate a higher ROI compared to ADU. Is there any potential significant appraisal difference to warrant the extra permit fees for the separate units?

@Mark Frattini

I’d appreciate it very much.

@Whitney Hutten

Thanks for your input. That makes a lot of sense to make sure I find a great one.

@Nat C.

Thanks for your input. I did read the first 2 books you mentioned and they were really an eye opener for me. Hence, I think I know what I’m looking for from a CPA.

As the post mentions, I'm looking to hire a reliable, trustworthy and more importantly RE experienced CPA here in San Diego preferably. I can possibly consider a long distance one in cities that we travel to often like New York city, Austin, Dallas and Miami to start writing those trips off. We have just acquired our first property here in SD which we are house hacking which other 4 tenant. The property is going under major renovation work. Hence I want someone to help us to devise a good tax plan and subsequently do our tax filling.   

@Wayne Brooks and @Ahad Ali. Thanks both for the information. Actually one contracting company is incorporated whereas the other G.C is organized as a simple sole proprietorship. I was able to confirm the corporation status of the latter. So I think I have the make I receive aW9 from the former. 

@dan 

@Dan V. Thanks for your input. Moving forward I'll  incorporate the W9 requirement as part of my onboarding process. 

@Drew Sygit

Thanks for your input. This makes lots of sense. We’ve been talking with these contractors lately about this and the tendency is that they may be able to provide W9 after all. But I’ll make sure I have them before signing any contact if that’s the route I decide to take over paying through a credit card.

@Evan Polaski

Thanks for your input. I saw such info online and I was not sure whether it I was accurate. I think paying through credit card is definitely an option.

@Filipe Pereira

Thanks for sharing your perspective. I think it makes a lot of sense to require a W9. I always try to play by the book and I was not sure about this specific issue as I kept finding different takes on the subject online.

@Filipe Pereira

What I meant is that they do provide receipts for their work but do not provide w9 to customers. I’m not entirely sure if there is correlation between their competitive price and not providing W9 for their work. My question was whether I should walk away if a contact wouldn’t provide a W9.

Another one is to know whether today’s savings from a potential contractor who doesn’t provide W9 is more valuable than long term tax benefits that are tied to having W9? I’m assuming that to be able to obtain tax benefits from property renovation cost which is capitalized over on longer period of time, one MUST obtain a W9 from the contractor.