Blog Post

I Can Buy A Home In LA...? 

I have been renting a 520sf bungalow in Venice for 8 years. I am a pre Google pre “silicon beach” resident.

Because of the nature of LA real estate this means 2 things:

1. I can never move to another rental.

2. I can NEVER move.

I wouldn’t mind a change of scenery, or more space, but a bigger apartment in my neighborhood is going to be 2-3x my current rent, which doesn’t make any sense, and buying a home anywhere on the Westside of LA is outside of my budget. My nightly routine would consist of: Redfin, Zillow, Craigslist, Trulia, close my computer, sigh, go to bed. For years I would look at options periodically, realize there weren’t any, and then move around the furniture in my apartment to make it feel different.

Then 2020 rolls around……..

Real estate is still expensive, that has not changed, but what has changed is the way I can conceivably use my future property. Adding an ADU and JADU to my currently fictitious property and renting them both will offset my mortgage. Because of this flexibility and income I would feel way more comfortable about taking on the commitment of a big long term loan.

I can live in my primary home and rent my ADU and JADU. If an unforeseen financial circumstance pops up, I can move into the JADU and rent my two larger properties.

For someone like me trying to put down some roots, it now seems possible.

For someone who made a great investment and put roots down in Venice years ago (or insert any other highly gentrified neighborhood) they can capitalize by adding an ADU and renting. They don’t have to sell and move, they can earn cash while staying in their own home.

That is the beauty of it. It is an option that literally helps everyone.

ADUs are a solution to a problem for many on the individual level, and increasing our housing options will theoretically help on a macro level.

Win/Win.

$40,000 ADU Grant - Free Money for your ADU

By Rob Berry • 03 Aug, 2022
What is the CAL HFA $40,000 ADU Grant Program? The California Housing Finance Agency also known as CalHFA is currently offering homeowners a $40,000 grant to help build an ADU on their property. This is a grant so you don’t have to repay it! The ADU grant will provide up to $40,000 towards pre-development costs which include items like: Architecture and Engineering Fees and Permits Property survey Soils test The grant will not pay for costs like construction materials and labor. We believe this an amazing opportunity for California homeowners wanting to build an Accessory Dwelling Unit (ADU) on their property. Who is Eligible for the Grant? The ADU grant is available to homeowners that meet the following criteria: Maximum annual income of the borrower cannot exceed $180,000 for Los Angeles County residents and $235,000 for Orange County residents You must be the homeowner and be living in the home Investors not eligible You must be on the deed You will live in the main house during construction of the ADU You will live in either the main house or the ADU after construction

Why ADUs Make Financial Sense

By Andrew Mele • 04 Jun, 2020
Accessory dwelling units make sense for a variety of reasons, so the realquestion isn't "why?", it's "how?". New legislation hasmade it possible for most properties in California to build ADUs. Regardless oflot size, current density, or zoning, you are likely allowed to build some formof ADU on your lot. So, how do you pay for it? With interest rates at all time lows, going through arefinancing, taking out a Home equity line of credit or constructionloan allow you to build your ADU, while cash flowing your new rental. Not a rental? Compare these monthlies to what you would spend on officespace, or an apartment for a family member or friend. We have built ADUs forparents, young adult children, grandparents, rentals and just for more living space. Your ADU may start as a rental and wind up being a retirement property. Adding a unit not only increases your property value, but it will set you up for options now, as well as in the future. ADUs add flexibility.

Keep Your Garage, Add An Apartment

By Andrew Mele • 01 May, 2020
The Carriage House. From "The Fonz" on "Happy Days" to The Braverman's in "Parenthood", the apartment over the garage has been a popular TV home. With new laws and legislation, this sensible solution is now easier than ever to build. Converting a detached garage is one of the most popular and cost efficient ways to add an accessory dwelling unit to your property, but if you really want or need that garage, this is the way have both. "Is it more expensive than converting your garage?" Short answer, yes. In order to build over your garage you must have a good foundation, proper footings and a unit that is in good repair. Going this route could mean tearing down your current structure all together. However, the potential rental income plus the increase in property value makes this versatile unit very popular. For more information on how to convert your garage visit our Garage Conversions web page.
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