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All Forum Posts by: Michael Williams

Michael Williams has started 65 posts and replied 199 times.

Post: Advice on investing in del Paso heights

Michael WilliamsPosted
  • Rental Property Investor
  • Sacramento, CA
  • Posts 202
  • Votes 82

@Soman Paddi Del Paso Heights is a great area to invest in, you can find great deals in the area. Its close to downtown Sacramento, downtown is being developed and people can still find affordable rental housing in Del Paso heights. I feel like the area will be a hot market in a few years because of how close it is to downtown and the low prices of homes.

Post: Annual rent increase - south natamos

Michael WilliamsPosted
  • Rental Property Investor
  • Sacramento, CA
  • Posts 202
  • Votes 82

@Ramki D. Under California law (AB 1482), annual rent increases are capped at 5 percent plus the change in the regional Consumer Price Index (CPI), or no more than 10 percent of the lowest gross rental rate charged the tenant at any time during the twelve (12) months prior to the effective date of the increase.

Post: How much cash do I need to build an ADU?

Michael WilliamsPosted
  • Rental Property Investor
  • Sacramento, CA
  • Posts 202
  • Votes 82
Originally posted by @Michael Hyun

The best way to finance an ADU is a RenoFi Renovation Home Equity Loan, as it factors in the value of a property after the ADU is built, greatly increasing the average homeowner's borrowing power. If you have equity in your home you could get a line of credit on the house. Also a homestyle renovation loan, you could consider a 2nd position construction that will cover the building costs.
    An ADU has to be less than 16 feet tall. And if your ADU is below that 16 foot height and is under 750 square feet, its building permits can't be blocked. If you're building an ADU within a home or existing building, the ADU can max out at the maximum height of the existing structure.


    @Michael Williams thanks for the rough estimate. What kind of financing options are out there for ADUs? 25% down? Less down? What about DTI restrictions?

    Post: What kind of flooring are you using in your rentals?

    Michael WilliamsPosted
    • Rental Property Investor
    • Sacramento, CA
    • Posts 202
    • Votes 82
    Originally posted by @Joe S.: Glue down
    Originally posted by @Michael Williams:

    @Joe S. Luxury waterproof vinyl planks, they look like hardwood in the kitchen. Basic black and white tiles in the bathrooms and dark colored carpets (Light Brown) in the bedroom and living rooms.

    Do you use the locking floating floor or the glue down? 

    Post: Electrician Estimate - seems very high

    Michael WilliamsPosted
    • Rental Property Investor
    • Sacramento, CA
    • Posts 202
    • Votes 82

    @Gabriel Miritello You should get multiple estimates from at least 3-5 electricians. And try to negotiate a lower price with whoever you choose. Licensed contractors will charge more.

    Post: Is a part-time real estate agent possible?

    Michael WilliamsPosted
    • Rental Property Investor
    • Sacramento, CA
    • Posts 202
    • Votes 82

    @Kayla Santangelo I’m not an agent but I’d imagine to be successful you’d have to be 100% into it. An agent needs to be available for their client 24/7 and be prepared to go for months without closing on a deal.

    Post: Sellers agent is against using an FHA loan

    Michael WilliamsPosted
    • Rental Property Investor
    • Sacramento, CA
    • Posts 202
    • Votes 82

    @Joshua King Your agent can have the seller agree to repair the discrepancies before you buy. I haven't used an FHA, I've used a VA loan and they're also strict about any discrepancies before purchase.

    Post: What kind of flooring are you using in your rentals?

    Michael WilliamsPosted
    • Rental Property Investor
    • Sacramento, CA
    • Posts 202
    • Votes 82

    @Joe S. Luxury waterproof vinyl planks, they look like hardwood in the kitchen. Basic black and white tiles in the bathrooms and dark colored carpets (Light Brown) in the bedroom and living rooms.

    Post: Clogged drain from hair, tenant's responsibility right?

    Michael WilliamsPosted
    • Rental Property Investor
    • Sacramento, CA
    • Posts 202
    • Votes 82

    Yes its their responsibility, It should also be in your lease agreement. If its not in the lease agreement and the clog causes damages you can bill them if you have to hire someone to fix the problem. 

    Post: Tenant trashed the unit - what can I do?

    Michael WilliamsPosted
    • Rental Property Investor
    • Sacramento, CA
    • Posts 202
    • Votes 82

    @Trent Lee They do not get any of these their deposit and depending on the amount/type of damage you can legally take them to small claims court. Speak with a local real estate investor in your area. In the future look for class A tenants, make sure they have a good rental history. Good luck!