All Forum Posts by: Rick Albert

I would argue the concern is the delays.  When it comes to tenants, they may end their previous lease with expectations and if you can't make it, they are screwed and I don't know the legal ramifications of having to pay for a hotel, storage, etc.  On my upcoming rental I'm waiting for walls and flooring so that tenants can at least have an idea of what is going on, and less likely for delays from the City, contractor, etc.

Hey Elizabeth,

I work with developers in Los Angeles.  Here are a few things we do:

1. I pull up real estate agents who represented homes that meet our criteria and reach out to them before it hits the market.  It is a win-win-win.  The agent doesn't have to market the home, the Seller just moves on without open houses and showings, and you get the home.
2. Is there anything unique to your homes that entice people?  For example, my developers built Spanish homes, and neighbors like that, which is why I have received calls from Sellers direct to us rather than going to the market.  They want to know that whoever touches their home does it with taste.
3. I've heard of developers work with a community to build it up, thus building property values.  This is a much larger task but it has worked for some.

Best of luck!

Hey @Ned J., most of the ADUs in the area don't have washer/dryer hook ups.  In the five comps in the area, only two had them.  Surprisingly only one had a dishwasher.  Mine will have washer/dryer hookups since we are already running the plumbing and we felt would make a large impact on marketability.

Thanks for the feedback!

Thanks everyone!  We are including washer/dryer hook ups and it will have it's own yard, which is what makes it unique.  We are pricing it similar to everyone else, who may not have those amenities, with the thought of renting it quickly.  

So this is a traditional rental.  In the state of California, you can convert garages to ADUs with separate utilities, so I won't be paying for water.  It is studio guest house, so I don't anticipate the tenant having a lot of people over.  All of this advice is extremely helpful, thanks!

Thanks! My property is in Granada Hills. Nice area but a step down from Sherman Oaks. 

Hello Everyone!

I am building out an Accessory Dwelling Unit in Los Angeles and planning out the kitchen.  It will be a guest house feel but as a studio with washer/dryer hook ups and its own private yard.  We were wondering everyone's thoughts on how important a dishwasher is.  Really no more than two people can live there, but not sure if it is a deal breaker for most tenants.

Your thoughts and guidance would be appreciated!

Thank you,

Rick

To echo Shannon's point, rent control is rough and the City is working on making more rent control changes.  What I have had some investors I know do is buy condos build after 1979.  Low cost to buy and currently no rent control.

Good luck!

In Los Angeles it is getting more and more difficult to have wide margins.  The investors I work with are looking at homes with bad floor plans, low ceiling heights, etc. where amateurs don't have the vision and wouldn't consider that home.  We are still doing some new construction, but only in the luxury market where you can justify the higher cost of building.

Hello Everyone!

I am in escrow to buy a house. We will be converting the garage into an Accessory Dwelling Unit (property is in Los Angeles). It is for my primary residence and obtaining an FHA 203(k). Once we finish the work, we will want to refinance to take of the mortgage insurance. The problem I am having is finding a lender that uses appraisers that give a true value to the ADU. I have seen between $0-$25,000, which conceptually it's worth more.

Does anyone know of any lenders that can give it a true/higher value?  Any help would be appreciated.

Thanks!

Rick