All Forum Posts by: Zach Stiegler

@Gabriel Garcia

Hi! Sorry I'm just seeing this now. I bought the property with the master bedroom already converted JADU. Unfortunately, I don't know what process the previous owner did for converting that room. But I'd imagine it would be similar to adding an ADU like my detached garage conversion. The city can make your permitting process a nightmare or very easy. (My architect has been back and forth with the city for almost 8 months now, still no permit.) I recommend your JADU have extra closet space that is on the shared wall side so you guys hear each other less.

@Issac San Miguel

The purpose of the line of credit would be for a 20% down payment on an investment property. My credit score is high, but I don’t have cash for a down payment. So I was wondering if I could borrow against my private stock. Do you have any recommended lenders that would do this line of credit for use on a down payment?

Hello!

My aerospace company (over 10,000 employees) pays me highly in private stock, more than my salary at this point. My the average yearly return on the company stock is over 30%. Since this is much higher than conventional real estate buy and hold, I’d like to not sell any of it.

I’ve heard of banks lending based on stock portfolios for collateral. However being a private stock with offerings to cash out only twice a year, it doesn’t seem like any bank or private lender would want to let me borrower against it due to illiquidity and private shares.

Have you ever heard of a less liquid private stock used as collateral for a loan? What type of lender should I be looking for?

Hello! I’m wanting to dive into Buy and Hold but there are so many other opportunities out there while I’m saving up money. I would love to gain some experience in any real estate area with someone that’s already doing it and wants some help. I don’t have much experience yet, but I understand most of the basics. I’m a full time engineer with some free time on the weekends.

I’m offering to help (without pay) in exchange for experience/training. Do any of you need help with your RE projects or deal hunts?

@Dan Heuschele

Yes good points. There is quite a bit of reliance on the appraiser for the estimated future value to determine how much loan we'd qualify for. Let's assume 70% of predicted value added. Zillow and Redfin estimate the property worth has gone up ~$40k so if we assume future value is (40k+96k)*70% = $95k higher, then that would be plenty for 2nd mortgage loan, current rates I'm seeing for second mortgage are 6-7%. I would be fine if it has some negative total value added if I can still get a loan. I don't plan on selling this house as it could Cashflow or break even as a virtual triplex if I move out, pretty hard to do for SFH in Long Beach area.

I've heard of different ranges of appraiser's views on ADU values, some do treat ADUs as whole other unit in terms of value (other's add roughly half), just depends on which one I get.

Hello! A bit about me:
My wife and I bought our first house a few months ago in Long Beach area (CA) with 5% down. It already has a JADU (attached studio) that rents for $1350 for 350 sq ft with private washer/dryer and all utilities paid except internet. I plan to slowly raise rent once I fix the last few minor problems. I just put in an initial payment for obtaining drawings and permits to convert my 380 sq ft garage into a 1 bedroom 1 bath detached ADU, ballpark total cost is around $96,000. Estimated ADU rent would be around $1550. Since we don't have much money saved but a healthy income, we plan to get a 2nd mortgage to fund the ADU conversion based on property future value.

Advice I'm seeking:
We've recently received preliminary blueprints for our detached ADU. The current drawing has it as a 1 bedroom/1bath with a washer & dryer inside. I'm thinking to remove the dishwasher to allow for more drawer/cupboard space. Should we keep the design as a 1 bedroom, or change it to a studio? We think it will rent more as a 1 bedroom, but it may feel crowded and therefore cause higher vacancy.

I'm an aerospace engineer, work roughly 50 hours a week. I would like to get more experience in the RE field! Do any of you have too much RE work and not enough man power? I am willing to exchange some of my time for training/shadowing! If we make a good fit, then I would be open to spending more time and move towards a partnership. My interests are in Buy-&-Hold and I think I would do well with analysis, but I'm open to pretty much everything in RE. Send me a message if you need help with your RE stuff!

@Melanie Stephens I don’t have any experience but I would be curious of supposedly high income Airbnbs compare to very season dependent airbnbs, like Does Mammoth Mt. produce as much as La Jolla in CA?

@Brandon Allenczy if you’re trying to generate more incentive to apply then consider waving half the fee if they sign and pay the lease? If you have enough applicants then might not be a need. I hear other places are cheaper than $55 if you can find a cheaper alternative?

@Adam Martin yes, as a newbie, I would also recommend providing the initial set of blinds. :)

@Nathan Leger

Have some more experienced investors look over your numbers to affirm that you’re making a good decision. Also recommend house hacking. Bunch of great advice above!