Home Buying & Real Estate Thread

[dalilboy]

Has anyone taken advantage of the lower interest rates and refinanced?

 

[MakeNTGreatAgain]

Thanks for that. I've been scouring the internet for success stories and you just added fuel to the fire.

Traditional duplexes in LA are out of my price range now. I want to buy a SFD and add an ADU to the back for myself. Then rent out the main house to a family. Only way I can make the numbers work

u might be better off living in the main house and renting therooms and building a nice adu u an rent out. reason for that is if u rent out the main house and its older than 1978 it will be under rent control which is a headache since adding the adu will make it a multi fam property

 

[MakeNTGreatAgain]

Started on Bigger Pockets last week and I have been devoting a good chunk of my time. Instead of spending hours a week on Grailed, I've been on themls . The goal is a house hack in the next year. Los Angeles area

fam, im in LA and this is my same exact plan rn

 

[indorphin]

u might be better off living in the main house and renting therooms and building a nice adu u an rent out. reason for that is if u rent out the main house and its older than 1978 it will be under rent control which is a headache since adding the adu will make it a multi fam property

I need to do some more research then. I swore I read somewhere that if the ADU is detached, it doesn't place the main property under rent control.

I wanted to rent the main house to get the most money to pay the mortgage. Would love to live for "Free" if I could

 

[pdino]

Thanks for that. I've been scouring the internet for success stories and you just added fuel to the fire.

Traditional duplexes in LA are out of my price range now. I want to buy a SFD and add an ADU to the back for myself. Then rent out the main house to a family. Only way I can make the numbers work

I started narrowing my search by finding which cities are within my price range and have multifamilies. The few cities that fit that criteria aren't considered "nice". Researched within these cities neighborhood to neighborhood and found a lower crime area on the outskirts of a more undesirable city. Im actually looking into buying and getting an ADU now. I ordered an ADU: boxabl -- 50k

 

[MakeNTGreatAgain]

I need to do some more research then. I swore I read somewhere that if the ADU is detached, it doesn't place the main property under rent control.

I wanted to rent the main house to get the most money to pay the mortgage. Would love to live for "Free" if I could

i might be wrong, if someone knows LA laws please chime in

 

[pdino]

Has anyone taken advantage of the lower interest rates and refinanced?

Refinanced several to 15 yr 2.875%, Could have got lower if I waited a month

I need to do some more research then. I swore I read somewhere that if the ADU is detached, it doesn't place the main property under rent control.

I wanted to rent the main house to get the most money to pay the mortgage. Would love to live for "Free" if I could

I wouldn't let rent control deter you. It's tied to consumer price index from 3-8%, this year 4%. (ex. raise rent on a 1250$ 1 bedroom to 1300$ [4%]). You'll have to bag a great deal or have 20% down in LA to live free. I rented the other unit for 1600$, and to a roommate for 700$= 2300$, while mortgage 2.8k. It's not free, but, to build equity and own a place for 500$ ain't bad.

 

[indorphin]

I started narrowing my search by finding which cities are within my price range and have multifamilies. The few cities that fit that criteria aren't considered "nice". Researched within these cities neighborhood to neighborhood a lower crime area on the outskirts of a more undesirable city. Im actually looking into buying and getting an ADU now. I ordered an ADU: boxabl

Those are nice.

Refinanced several to 15 yr 2.875%, Could have got lower if I waited a month


I wouldn't let rent control deter you. It's tied to consumer price index from 3-8%, this year 4%. (ex. raise rent on a 1250$ 1 bedroom to 1300$ [4%]). You'll have to bag a great deal or have 20% down in LA to live free. I rented the other unit for 1600$, and to a roommate for 700$= 2300$, while mortgage 2.8k. It's not free, but, to build equity and own a place for 500$ ain't bad.

I was thinking of going through a Fannie Mae 203k loan (Only 3.5% down and they let you roll any repairs/ADUs into the loan) on a fixer, fixing it up and building the ADU, and rent the main house. I move into the finished ADU. Then refinance after 6 months. Pulling that cash out and then paying the OG loan . Basic BRRR. If I'm not living free I'll be pretty damn close.

This idea may be half baked from my whopping 2 days of research so if y'all see anything I 'm overlooking, I'd appreciate the guidance.

 

[MakeNTGreatAgain]

Those are nice.

I was thinking of going through a Fannie Mae 203k loan (Only 3.5% down and they let you roll any repairs/ADUs into the loan) on a fixer, fixing it up and building the ADU, and rent the main house. I move into the finished ADU. Then refinance after 6 months. Pulling that cash out and then paying the OG loan . Basic BRRR. If I'm not living free I'll be pretty damn close.

This idea may be half baked from my whopping 2 days of research so if y'all see anything I 'm overlooking, I'd appreciate the guidance.

im in the same boat, i wanna add on, is it harder to get approved with this kind of loan?
ive seen some nice fixer uppers unfortunately they want cash only

 

[indorphin]

im in the same boat, i wanna add on, is it harder to get approved with this kind of loan?
ive seen some nice fixer uppers unfortunately they want cash only

What areas have you been looking in?

 

[Upptempo]

We decided to do a custom build in north NJ this year. Complete tear down and new foundation. Lot's of hard work/headaches from financing, design, build, etc. but also exciting to go through the process.

This must've cost a lot. I was considering Northern Nj because I wanna leave NY and it's close enough of a commute to the city for work. But the prices are up there. I don't plan on having kids so I don't wanna drop $600k+ for a crib for just me and my girl

 

[pdino]

Those are nice.

I was thinking of going through a Fannie Mae 203k loan (Only 3.5% down and they let you roll any repairs/ADUs into the loan) on a fixer, fixing it up and building the ADU, and rent the main house. I move into the finished ADU. Then refinance after 6 months. Pulling that cash out and then paying the OG loan . Basic BRRR. If I'm not living free I'll be pretty damn close.

This idea may be half baked from my whopping 2 days of research so if y'all see anything I 'm overlooking, I'd appreciate the guidance.

The Fannie Mae 203k loan is based on appraised value after your renovation. You buy a 500k house, they let you take out 100k assuming that it's worth 600k after you renovated it. BRRR is based on the idea that you renovate, then refinance with the new appreciated value. They baked in the appreciated value to your loan already.

There are a lot of factors: Do you have a fannie approved lender? fit income limits? below median area income limit? Credit score high enough? have enough down payment?

Does your hypothetical county allow ADUs? what are the sq ft limits? how much backyard space is required in relation to sqft of property? how many feet do you need from the back/side fence? What are the cities rules? require sprinklers for fire safety? earthquake resistance? front door? attached to the primary residence? windows? REQUIRE solar panels? What's the permitting process like? 2 bedroom or 1 bedroom ADU? can you have 2? This requires your due diligence. ADUs cost 100k+ in general for the most part. A slightly cheaper option to consider is a JADU, garage conversion.

 

[pdino]

im in the same boat, i wanna add on, is it harder to get approved with this kind of loan?
ive seen some nice fixer uppers unfortunately they want cash only

Harder to get approved, no. Less competitive, yes.

From sellers perspective: would you rather sell your house in cash and have the $ in your account within the week?
Or process several forms, have FHA inspect your house, find issues, have to repair them and go through a month-several month long process to get your funds?

 

[MakeNTGreatAgain]

What areas have you been looking in?

recently san bernardino

 

[indorphin]

There are a lot of factors: Do you have a fannie approved lender? fit income limits? below median area income limit? Credit score high enough? have enough down payment?
Does your hypothetical county allow ADUs? what are the sq ft limits? how much backyard space is required in relation to sqft of property? how many feet do you need from the back/side fence? What are the cities rules? require sprinklers for fire safety? earthquake resistance? front door? attached to the primary residence? windows? REQUIRE solar panels? What's the permitting process like? 2 bedroom or 1 bedroom ADU? can you have 2? This requires your due diligence. ADUs cost 100k+ in general for the most part. A slightly cheaper option to consider is a JADU, garage conversion.

My score is around 700 (requirements are 650) and I can easily come up with 3.5% for a downpayment

I actually used to work for the Los Angeles Department of Building and Safety (an administrative position unrelated to building but I naturally learned a lot) so I'm familiar with ADUs. I'm aware of the various zoning, square footage limits, etc. If I don't know the answer, I know where to find it.

The hard part seems finding the perfect fixer in my price range

 

[indorphin]

recently san bernardino

Too far out for me. One of the stipulations of the 203k is that you have to live in it for a year and I work in DTLA.

 

[MakeNTGreatAgain]

Too far out for me. One of the stipulations of the 203k is that you have to live in it for a year and I work in DTLA.

true, FYI it just has to be ur "primary" residence. take that for what u want.

 

[MakeNTGreatAgain]

indorphin what areas u looking in?

 

[indorphin]

indorphin what areas u looking in?

The San Fernando Valley

 

[MakeNTGreatAgain]

The San Fernando Valley

ah thats where i stay, gonna be paying over 400k for something im guessing

 

[indorphin]

ah thats where i stay, gonna be paying over 400k for something im guessing

Yeah. Even the ****holes go for 375k

 

[pdino]

My score is around 700 (requirements are 650) and I can easily come up with 3.5% for a downpayment

I actually used to work for the Los Angeles Department of Building and Safety (an administrative position unrelated to building but I naturally learned a lot) so I'm familiar with ADUs. I'm aware of the various zoning, square footage limits, etc. If I don't know the answer, I know where to find it.

The hard part seems finding the perfect fixer in my price range

Seems like you have a lot of logistics figured. Wait for something that works for you. You can improve your debt to income in meantime by paying off any debts if you have or getting another job . Set up email alerts for properties that fit your criteria. Go to the open houses. I'm getting my ducks in a row now to buy next year. If someone is willing to be your co-buyer can improve your house buying power as well. I had to take out of my Roth IRA 10k to help with my funds at the time

 

[indorphin]

Seems like you have a lot of logistics figured. Wait for something that works for you. You can improve your debt to income in meantime by paying off any debts if you have or getting another job . Set up email alerts for properties that fit your criteria. Go to the open houses. I'm getting my ducks in a row now to buy next year. If someone is willing to be your co-buyer can improve your house buying power as well.

Thanks again. Glad to hear it from someone whos been there. I'm not doing any major moves this year as well, just thinking ahead for next.

 

[finessesosa]

We decided to do a custom build in north NJ this year. Complete tear down and new foundation. Lot's of hard work/headaches from financing, design, build, etc. but also exciting to go through the process.

When I move back to North NJ ill be doing the same. Congrats!

 

[MakeNTGreatAgain]

indorphin did u do the fha new home buyer education? its like 99 bucks