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What the hoo is an ADU?? Maximizing your Southern California Real Estate

Posted on April 16, 2019. Filed under: Accessory Dwelling Units, ADUs, AirBnB, FHA loans, First Time Buyer help, Home Improvement Ideas, Homeownership, Informed Investor Alliance, Lenders & Loan info, Los Angeles property, Los Angeles Real Estate, Orange County Home Improvement, Orange County Real Estate | Tags: , , , , |

Have you heard of an ADU?

Accessory Dwelling Units are additional legal units on your property, and they can help you earn BIG bucks. If you’d like to run a duplex or generate additional income without buying an entire new property, then adding an ADU to your lot is a GREAT option. ADU’s can cost anywhere from 20K-200K, which is waaaay cheaper than a ‘unit’ in today’s Southern California real estate market. That said, not everyone has an additional 20-200K laying around to seize this opportunity, so let’s learn how you can use other people’s money to make some of your own!

Renovation loans are NOT construction loans, so if you have never heard of one… read on. There are multiple options for reno loans, so it’s about finding your best fit. Today we were at Eric C Miller’s Finance of America’s presentation and got some details & highlights for you. Finance of America highlighted how this process benefits you!

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Orange County Renovation loan process in a nutshell:

Pre-qualification –> Offer Accepted –> Disclose –> Underwriting conditional commitment –> Assign Project manager –> Collect credit conditions –> Project Scope & bids –> Appraisal –> Clear to Close –> Sign Docs –> Close –> Begin Renovations

Fannie Mae Homestyle Renovation Loan

  • Utilizes a construction project inspector sourced by lender
  • No minimum in repairs
  • Inspection prior to draw disbursements, up to 5 draws
  • All repairs and improvements must be attached to property, and supported by appraisal
  • Borrowers have 6 months to complete improvements
  • Repairs must begin within 30 days. (it’s ok if permits are the delay…you can pull permits on a property you don’t yet own)

They can be FHA or conventional, and they are a fully amortized single close transaction. 98% of the time they appraise on resales, so don’t worry if you’re buying resale.

FHA 203K – limited

  • nothing structural,
  • limit of 35K,
  • repairs must be completed in 4 months
  • limit of only two payments to each contractor

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FHA 203K – standard

  • can tear down the entire property but MUST use the entire foundation
  • utilizes a HUD consultant.
  • 6 months to complete improvements
  • can loan up to FHA limit for the county, high balance eligible
  • owner occupants only
  • Contract lingo: “The borrower has applied for Section 203k financing, and that the contract is contingent upon mortgage approval and the borrowers acceptance of additional required improvements”…this must be in there, but is not necessary in the purchase agreement.

Things to know & next steps:

  • Choosing the right contractor and renovation team is critical! Always get multiple quotes. If you’re looking for a forward thinking Orange County ADU company, check out RC Smith Design & Build.
  • 30 day escrows won’t fly, renovation loans take 45-60 days.
  • Reno loans are TOUGH. You’ve got to coordinate bids, contractors, and make deadlines. If you’re looking for an ‘easy button’ into homeownership, this may not be it 😉 BUT then again…you could try buying one of these Amazon ADU’s and avoid MOST of the contractor back and forth 🙂
  • ADU regulations are different and ever-changing. Here’s an OC ADU resource to get started. Always check with the city to find out your guidelines before beginning work or submitting offers!

Did you know most people spend 15K on their home the first year they buy it, and they statistically put it on credit cards? Ouch. Don’t be that guy, there’s a better way! Call or text Angie to start exploring your best ADU options at 949-338-7408 or email Angie@AskAngie.com

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Ringing in 2019 with Real Estate Goals

Posted on January 11, 2019. Filed under: AirBnB, Buying in Spain, Divorce, First Time Buyer help, Home Seller Tips, Homeownership, Making Life Easier, Orange County Real Estate, Renting, Selling for top dollar, Selling your home fast, Vow2Save Orange County Real Estate Registry | Tags: , , , , , |

Dream Big, Set Goals, Take Action Chalk Drawing

What will your 2019 look like?

We have some big goals for 2019 – one of them being helping our clients achieve their real estate new years resolutions! Whether it’s buying internationally or crowdfunding a down payment for an engaged couple, we can help you accomplish them all. Every year our whole team writes down their goals for the new year and we try to help each other accomplish them. This year, we want to do the same with all of our clients. Writing them down and being able to cross them off when they are accomplished really makes you feel good and it will make us feel good to be able to help you do that.

AskAngie Team’s Goals

Our team has a few things were really excited for this year! This year we plan to really grow our Vow2Save program. We are looking forward to helping a lot more engaged couples crowdfund a down payment so that they are able to buy a home after their wedding. This has been a goal of ours for a few years, and after a lot of work in 2018 we know it is really going to be taking off this year and we can’t wait to see the things it can do for people! We also plan to travel more this year in order to have the best information in helping our clients buy overseas. Last year we went to Spain and met with Realtors there, but we want to be able to do that in many more countries.

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So much more we can do for you!

If you need help selling or buying a home after a divorce or identifying a good AirBnB investment we can help with that and everything in between. We have various services that we are experienced in. Another goal we know some of our clients have is to stop renting and own their first home and we are so excited to help many people achieve that this year especially with the current rent prices in OC. We can help you figure out what your home is worth and how you can sell it fast and for top dollar! We truly value our time with our clients and being able to help them grow their real estate profile and accomplish their goals. If you have any questions or want to share your goals with us so we are better able to  help you please fill out the form below or contact Angie at 949-338-7408!

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Making Money in OC with AirBnB

Posted on February 9, 2018. Filed under: AirBnB, First Time Buyer help, Homeownership, Making Life Easier, Orange County Real Estate, Real Estate Stories | Tags: |

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Here we are on a wonderful Costa Rica family vacation in Nov 2017 that AirBnB rentals paid for!

Getting help paying your mortgage while traveling the world!

Renting out your home as an AirBnB allows you to travel as much as you want while still making an income to help pay your mortgage. You have complete control over who you allow to stay in your home and you are also in complete control of when you choose to have your home rented out. Why wouldn’t you want to get paid to go on vacation and have someone else paying your mortgage for you? We have had such a great experience using AirBnB and wanted to share what we’ve learned so that you can do it too.

Our AirBnB tips and tricks

Finding a good place to stay while your house is being rented is very important! You’re renting out your house to make money, but you want to be somewhere comfortable too. You want a daily rent potential that is at least 125% of your daily mortgage to insure good profit! When thinking of making your home or a place you buy into an AirBnb, make sure you consider the tourist destination and proximity to arenas and conventions near that property. You’ll also want to make sure that community or city allows short term rentals. We also found it beneficial to make sure we had closets that we could easily lock or a detached garage/storage shed to safely keep items while we were renting out our home.

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Humble houses still make money! Here’s our historical Santa Ana pad before we earned the money from AirBnB rentals to pay for our new walkway.

Systemizing

Having a smart lock such as IglooHome is a great idea. It’s easy for guests, and safe for you. We have “AirBnB Bin” with sheets and towels that are only used for guests, that way the ones we use for ourselves are never used. Shampoo and soap dispensers in the shower are super helpful as well. We make sure our supply closet is always on stock and that we have a house keeper on call, just in case. Syncing with your calendar makes it easier to stay organized with the schedule of your rentals.

Refinancing your Mortgage with AirBnB Income

An initiative is starting this year in order to help you refinance your mortgage using the income you make as an AirBnB host. Previously, banks wouldn’t count your AirBnB income when considering whether or not to refinance your mortgage. Thankfully that is beginning to change. The three financial institutions participating in the initiative include Quicken Loans, Citizens Bank, and Better Mortgage. They have the chance to consider home sharing income earned on Airbnb when hosts in the U.S. apply to refinance their mortgage on their primary residence! This is just another benefit to using AirBnB – someone will be paying your REDUCED mortgage rate which means even more profit in your pocket!

Here’s a video of Angie sharing this information with one of her networking groups!

Finding A Good AirBnB Investment in Orange County, CA

If this sounds like something you want to learn more about, follow our Automatic Millionaire Homeowners group on Facebook! If you want to search out an Orange County property to buy and make your AirBnB contact Angie at 949-338-7408.

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    Orange County, CA Real Estate for hip first-time buyers and investors. Plus, fun things to know and do in OC.

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