All Forum Posts by: Karen Margrave

With the costs of construction (materials, labor, and supply chain) rising daily, and the need for housing at a crisis point in CA, ADUs are the obvious choice. I have for many years written on this, but so far have never built any ADUs! 

There are manufactured ADUS offered, panelized (where they are built off site and components hauled to the site for installation, and of course stick built. On panelized, do  you build yourself offsite, or purchase from another party, and if so, who? 

Do you have any real life experience with any of these? Please give specifics. 

I want to find the most cost efficient designs, with functional floor plans, in 1 and 2 bedroom units. 

PLEASE INCLUDE PHOTOS, floor plans, etc.  if you have them! 

Nobody can give you an answer to that question without real information. Have you had any type of inspections? (home, pest, systems, roof, etc.)  When you say it needs a lot of work, what specifically does that mean?  Do you have photos? Is it sound structurually? Is it just outdated and needing cosmetic refresh or major remodel? 

As a contractor that has done a lot of new construction over the years, on the one remodel we did do, I will say that there were things that came up, that were not visible to the eye until we ripped out sheetrock, etc. and ended up being expensive to fix. It was ok, as we had extra money in the budget, but we didn't get to do some of what we wanted due to that.  For someone that isn't a contractor, it can be far worse.

As to the time involved, it depends on how experienced you are, what the work is, and if you have to sub things out (then it's based on the subs schedules)  

More information is needed, but it sounds like your best bet is to go talk to an attorney and see what you need to cancel the contract and get your money back. We developed a 48 lot subdivision some years back. As part of the permitting process, we designed 5 different floor plans, and assigned them to various lots in the subdivision. The plans were all pre approved, therefore, as lots were sold, we just had to pay the fees and begin construction. 

If the lender has already advanced $35,000 on the build, what is the lender planning on doing for the repayment? They may be able to lien the property and get back the money from the builder. You might want to file a complaint against the builder, and the BBB if there is one in your area. Definitely go see an attorney. Do not move forward with that builder, he's proven he's unreliable and not trustworthy. 

The problem is you don't have any comps to use, and on the only one you did use, how does it actually stack up against yours as far as age, location, square footage, size of lot, quality of construction, finishes used, etc. You always want to be comparing apples to apples. Have you talked to an agent to see if they can find you more comps?

Honestly I don't know where the 3X rent number came into play, but it is a huge problem for a lot of people in high rent areas of the country. Rent and mortgage payments are often taking up 46% of income it's said. Add to that the rising cost of utilities, food, etc. and people are stretched beyond reason. 

Here in my area where homes are in high demand, I've seen seniors sell their homes, use their profits wanting to buy a MFD home, pay cash for it, and use their SS and other income for paying space rent, utilities, etc. However; the parks are requiring they make 3x what the TOTAL OF ALL BILLS are. Add to that the credit scores required, when often elderly people aren't using credit, therefore; have no score or low scores.  It's insane! 

Currently there is no protected class for people based on their income levels, or credit scores, but I can forsee a day when someone brings suit to try to have consistency applied, and formulas, based on an areas rental amounts.  

Ever heard the saying " A bird in the hand is worth 2 in the bush". You have a good investment right now. The times are challenging. Why take the risk? I personally would wait until the markets, and the world settles down. SVB fallout hasn't even been felt yet. These are unstable times.  I'd sit tight, and be thankful for good tenants, but you need to do what feels right to you.  

It appears that is a home inspection. As you know, home inspectors in CA are not licensed contractors, therefore; they make notes of everything, and tell you to consult with licensed contractors/trades, etc. to look into problem issues. The critical things to have inspected are electrical, plumbing, HVAC, roof, and have a pest inspection. Pest inspections tell a lot, that's where you'll find out about dry rot, pests, foundations, subflooring that is failing, etc. Try to find a company licensed in multiple trades and ask what they charge for inspections. 

Health and safety issues, such as GFI, pool issues, etc. are important. Definitely need to find out what is going on with electrical. 

Be sure to use LICENSED contractors. Verify their license on the State of CA Contractors Licensing Board website. Check references, don't go off what you see on websites, or people tell you about themselves. Get actual bids on repair costs IN WRITING

I live in Redding, CA. It's in the actual northern CA, not the bay area where those location challenged claim it is. Our area has such a big demand for affordable housing, that people are renting furnished (sometimes unfurnished) rooms out for $450-1000+ sometimes. These are such bizarre times right now. There are some new homes being built, but in CA it's so expensive to get through the entitlement process, permits, then add to that including solar and sprinklers, and affordable is out of the question. We have older manufactured homes on a parcel of land selling for $200+ . Yes there are a few developers doing subsidized housing projects, but it's strange. 

Where you live what is it like? 

Though I've slacked off on posting, I can tell you the secret to gaining value from Biggerpockets is adding value! Participate in the forums, post consistently. Give detailed advice about things you KNOW. I came on BP in 2009, wanting to learn about the market in southern CA where we had just moved, and trying to determine where there was a niche for us on business. I found so many good people willing to share what they knew. I realized there were a lot of people I could share what I knew with, on real estate, construction,, new spec building, etc. I loved it and was addicted. Soon Joshua and Brandon asked if I'd moderate. Of course I was thrilled, being the first female moderator. I've been here since. Love this group of people. I started a meetup in southern CA, then another in Bend, OR. Both are still going, run by other BP members! The generosity, and breadth of knowledge on this site is like nothing else anywhere! Be helpful, don't worry about what you'll get out of it. 

REDDING, CA has a very high demand for rental properties, and multi unit properties are extremely rare on the market. It will go fast. Call or text me if you're interested. (530) 782-1800. 

The demand in Redding is driven by the massive wildfires in northern CA the past few years, displacing thousands. Add to that, we are one of the most beautiful areas for recreation in CA, with huge lakes, rivers, mountains, caverns, and hundreds of miles of trail system, plus 2 volcanoes, and waterfalls within a short drive, meaning lots of investors in STR here.

As if that weren't enough, Bethel School of Supernatural Ministry has a few thousand students that come from around the world, and has no dorms, meaning investors buy up homes and rent bed space for high dollar amounts! 

Redding, Shasta, Triplex, Income, MFR,