All Forum Posts by: Pavan Sandhu

@Embert Madison jr Sacramento is the place to be in!

@Tyler Uenaka you could turn a house into a duplex if you converted the garage or basement into an ADU. CASH FLOW IN CA IS POSSIBLE!

Buy a house with a detached garage on a big lot with alley access. ADUs can allow you to turn any single family house into a multifamily property. 

Look for a property with a dettached garage so you can turn that into a rental. With the new ADU laws you can turn any single family home into a small apartment building.

You may be basis this 5% equity from the time you bought the place? Did you use an FHA or something of the sort and are required to pay PMI? Either way the loan for a DADU may just be a short term financing need. Ideally you can force enough appreciation into the property to cash out refinance after completion. ALSO how much is it really going to cost you? Break down the numbers more, shop around and then decide what's the best loan for you. Plenty of people lending money these days. It's probably never been easier or cheaper to borrow money in history.

Brother go with the least path of resistance. ADU's! You can be strategic with how you do this.

Think about what's your least path of resistance. What tools and resources you have accessible? That are also unique to you. 

I say buy the place, with cash, fix it up with minimal costs. How much would it cost you to get it "livable" something you can leverage perhaps a conventional mortgage on. Rehab what you NEED to. Establish a new value for the property. Cash-out refinance. Use that mortgage you pay yourself back for some of the costs you put into the property. Get a first up to 40-75% LTV. Then get a 2nd to leverage some additional equity. If everything works out you could in the short term recoup your initial investment. Then take your time working on a longer term development play. With all the resources you just accumulated the project will be that much more successful. Like @Greg Dickerson said you don't want to use a hard money loan. High interest and unfavorable terms for something like this. Having favorable terms, payback structures, and access to capital are a few keys to a successful development project. No matter what size.

300-550 price per sq. ft.

offsite costs are a huge variable among several other things.