All Forum Posts by: Account Closed

I was wondering what will be a cost of building an apartment quality 1000 sq ft. ADU unit (2 bed/2 bath/ 2 story) in the san francisco bay area. any inputs will be appreciated. I am looking for a quote for construction only excluding all the soft costs like architectural,engineering, permit, etc.

I think ADU's are worth it in the Bay Area considering the fact that the rents are so high and huge appreciation that has been happening every year in the Bay Area. But remember that ADU's are not cheap. There are still the building and architectural guidelines that needs to be followed from the city. In addition to the construction cost you need o account for the architectural, engineering,water and sewer connection fees. School facility feee and the permit fees. The other fees on itself will run into several thousands of dollars.

Thanks @Taye N. @Account Closed

My contractor mentioned that he hires employees through an employment service and the employment service has worker's comp for the employees. does this protect me completely?

@Account Closed I will try calling some insurance companies( but AAA is a big insurance company at least in California). is there anything specific I should ask for in the policy when I call one of the big companies.

@Account Closed I have the umbrella insurance but AAA said the umbrella will not cover this situation as well.

I am in the process of hiring a contractor to build a detached in-law unit. I spoke to my home insurance company (AAA) and they mentioned that they do not cover anything related to the new addition (no liability and no coverage on the new detached in law unit that will be constructed).

Couple of contractors that I am looking into do not have worker compensation insurance and neither their sub contractors have worker compensation insurance. the GC might ave liability insurance.

How do I go ahead in this situation to protect myself if somebody gets injured  (GC, workers or sub contractors) during the construction.

any help will be appreciated.

@Edwin Hsu Thanks for the insights but your information about toscano is not correct. They just started selling 2 months ago and have already sold around 25 homes and there is already a long waiting list on some of the desirable lots/plans. They were planning to finish this project by 2020 (total 161 homes) but looking at the pace they are selling , they will be done long before.

also, there is no restriction on renting right away. The homes at toscano are priced at the same price/below compared to  some very old homes in the areas and  this is the reason they are selling so fast. also, lot of upgrades that other builders would charge a premium are already included.

I have cancelled the purchase due to other reasons for but I do feel that this community will do good in the long term.

@Tom Arena Thanks for your views. I am still not sure if this is an good deal but my logic is based upon 

1. Avivo townhomes 1800 sq.ft 3 level townhome selling in mid 600 range. http://avivohomes.com/residences/

2. I am from bay area and hence cashflow here is impossible in good areas and people usually make money through appreciation.

Not sure if the avivo homes area is a better location in San Luis obispo and maybe that is the reason the townhome is almost priced similar to a single family home at Toscano.

I am mostly betting on appreciation. I think if I exclude the principal payment then mortgage interest/taxes/hoa/insuranc/property managemee etc might be same as the rental income.

I am still undecided and do see a risk here but there is another side that says I might make money here in the long term.

thanks @Jacob James Caballero @Owen Schwaegerle

@Owen Schwaegerle, I am buying a 3 bed/2 bath at the toscano community. http://midlandpacific.com/neighborhoods/toscano (Enantio plan) . how much rent can i get for approx 1650 sq. ft. 3 bed/2 bath brand new home.

How many bedrooms do you have in the house that you are renting for $3500. also the property that I am looking to buy is around 0.7 miles from cemetery. can that affect property/rental values. thanks for the help

I am looking to purchase a 3 bedroom/2 bath single family home in San Luis Obispo and wanted to get feedback on how is this place for investment over long term (buy and hold). also, feedback on how the rental market is and how the property will appreciate. is it easier to rent? is the rent really in the 3.5k range for a 3 bedroom/2 bath 1700 sq. ft newer single family home around 4 miles from cal poly.