All Forum Posts by: Sean Walton

Make sure the construction cost is lower than buying an existing structure it usually is but in some markets if Seattle is stealing all your good contractors because of their booming market it could be. 

Always have a good contingency. Costs usually go up rarely down. You don't want to run out of money part way. 

I'm obviously biased but having a good architect with experience is what you are doing can be an advocate with a professional duty to protect your interests especially if you don't already have a relationship with a trusted GC

@Dean Bell I was just back for my bachelor party last June but unfortunately no trips planned in the near future. I worked on the initial design for the CHUM so it was cool to see the 1st phase of the hospital almost complete. Speaking of going for work I stayed in a condo that was made into corporate housing. The vacancy between tenants may be a little higher but high rental prices so that is another market to consider.

Good luck and feel free to PM me with questions.

Hi Dean,

   welcome to BP. I lived in Montreal for 6 months a few years ago. I love all the great food.

You should check with your local short term rental (STR) laws and always make sure your deals work even if those laws change and force you to do mid to long term rentals but since there are so many universities and bachelor/bachelorette parties and general tourist travel in the summer. I would see if you can get students 9 months of the year and do STRs during the summer. You may be able to get a premium on student rentals by not requiring 12 month leases like your competition. And you rake it in on your STR during the best weather months. Read up on student rentals it is not for everyone but if you pick good tenants and get parents to co-sign it can be lucrative.

@Felicia Nitu yes I will definitely be making it a regular thing. We had 6 people this time but I think that was because of the short notice 

@Harman N. if you have the head height I would do 2 layers of drywall attached to resilient channels on the ceiling won't cost that much and will keep the tenant happier not hearing as much noise from above. Obviously fill the space between joists with batt insulation as well. 

Hope you can make it to the happy hour at 6pm tonight (3/25/17) at 86 2nd st. 

I always thought you always had the option of filing together or separate. My wife and I just had our cpa run our taxes and we saved $500 filing jointly. It took 10 seconds after all our income and deductions were plugged in for her to run it both ways. (My rental income ate up her refund) but overall it was better. I was told filing separately is only advantageous if one person earns way more than the other and maybe with all your RE deductions that is true at least on paper

Thanks @Puran Zach Grewal for tagging everyone. Hope to see you all tomorrow

Hi @Harman N. I've never done one of these before but it seems like you have a pretty easy conversion since the door out the back appears to be at grade so easy to add windows. Do you have at least 7'-6" ceiling heights? That would be a code requirement. Ideally you would want 8'-0" to make it more like a typical living space. 

Is there a passageway from the back yard to the street without going through the building? If not you will probably need to make a wall with door from the left fin wall of the bottom stair to the wall above it so that is a safe exit in case of a fire

You would also need to make sure you have room on your electric panel or pay for another electric meter and panel

Are you adding the ADU in the back yard or excavating under your existing building? If you are taking space from one unit or garage to make the 3rd it may not add as much value as you think. All else being equal I would take the duplex with ADU but I may not be the typical buyer. I don't think duplex with ADU will appraise as a triplex relative to triplex comps because I think in SF the owner needs to occupy one unit (double check this).

Not sure about lending rules in PR but I think the max you could go to is 75% LTV You may also want to look at Airbnb or VRBO if the area is good for it. This can increase the income generated but is less passive. Just be careful your relatives don't try and block out too many days without compensating you.