All Forum Posts by: Michael Williams

@Sophia Bahena A 4plex is still considered residential property by lenders so you can still use an FHA loan and put down less than 5%. Start with the multi family, it's a better long term investment because it's the same amount of work you'd have to put into owning 1 unit. Consider house hacking also so you can live in one unit, you'll gain a lot of property management experience. Good luck!

In the Bay Area, you can expect a 650-square-foot ADU to cost around $350,000 on average to construct where a 350-square-foot ADU will likely cost around $225,000 to build. Of course, your costs may be more or less, depending on what you want for your accessory dwelling

Congratulations! It's a great feeling completing a project on a property you own. 

What were some of the biggest mistakes they've made in there real estate investing careers?

Maybe speak with your landlord about splitting costs to hire a professional to inspect the property? If there are no visible signs there is damage the landlord probably assumes he is not liable for the excess water being used. But if you are not using extra water a month and the bill is high I'd get a second opinion from a professional.

Your property manager should have done a better job of vetting the tenant before allowing them to move in. You can not deny anyone with a criminal background (Check your states landlord tenant laws) but you should shoot for a class A tenant. Yes it would be caught in a background check, a lot of websites offer background checks for landlords and it should also be apart of the application fee. You would charge the perspective tenant $50 or more and this fee would be used to run a background check before you sign a lease.

Most books recommend you visit twice a year for a general inspection of the property. I visit every 3-4 months to change air filters. Yes you should give your tenants at least 24 hour notice before you go into their space, also check your state laws too. But I'll drive by the property at least once a week to make sure the landscaping is nice and there are not discrepancies. 

How would I qualify for a 203 K loan (Construction loan)? How are they better than traditional loans? I’d prefer to use a construction loan if possible, we like to use a value add strategy when purchasing investment properties.