SFR 3 ADUs

[alebrewer]

It's my understanding that the state of California imposed high density variances that supersede city/county zoning ordinances. GH might be a good resource for you if you're not familiar with this. If that is the case, however, and IF construction of the 3 additional living units is legal under the new CA high density regulations, then it's quite possible you have a 4-unit, and not an SF with 3 ADU's...

 

[Mark K]

Sounds like a 4-unit rental property with one unit potentially owner-occupied.

Put it on the 1025.

 

[nauthead]

URAR Page 4: This form is designed to report an appraisal of a one-unit property or a one-unit property with an accessory unit. If the property has multiple ADUs, it doesn't seem to work with the Fannie Mae requirements for the form. Put it on the 1025.

 

[J Grant]

URAR Page 4: This form is designed to report an appraisal of a one-unit property or a one-unit property with an accessory unit. If the property has multiple ADUs, it doesn't seem to work with the Fannie Mae requirements for the form. Put it on the 1025.

So you change a property type to fit a form ?

 

[nauthead]

So would you put in on a 1004 form despite what the cert page says?

 

[glenn walker]

-Conventional loan
-Zoning is 1 family res
-Planning approved the construction of 3 ADUs on a .15 acre lot. They specifically say it is permitted as multiple adus.
- old town (mostly 50-150 year old homes with a mix of SFR and 2-4 unit with no pattern).

Told the lender this is a dead deal if it is for FNMA due to multiple ADUs. They tell me all units are permitted and proceed with 1025. I tell them this is SFR with multiple adus. They say “yes we know, that’s why it’s a 1025”


Now they insist to proceed. Which form? 1004 or 1025?

Comps on a 1004 form would be 75~100% 2-4 unit properties due to the income nature of the property. 1025 does not make sense because it’s zoned SFR. Butttt occasionally I complete 2 homes on one lot with a 1025 with SFR zoning depending on the circumstances (city or county states “two single family residences”)

Help me out. Thanks

One more thing


Since this does not comply with standard secondary market, do you discount based on financing restrictions? Cash only deals have to happen time to time and tend to sell at a discount.

Its DOA and no such thing as three ADUs--I live in California and never seen and City or County approve three ADU-as everyone in planning knows those are going to be used as three rental units .

 

[MrLA]

1. Check zoning. 2. Verify permits. Then decide. Most likely I am saying it's a SFR with 3 adus/rec rooms/etc. You need to find one like it. Look one area at a time. Charge accordingly. Nothing to be scared of. I run into these kids of situation all the time. Be well versed in this style. You can make good money by doing the deals, no one wants. I say charge 2k for it.

 

[George Hatch]

MV is based on what the market participants are doing, which includes consideration of what they're allowed to do. If a property owner can rent 2 units out to different tenants then it is what it is.

The fact that a lender might have their own "will accept" which conflicts with what the market participants are allowed to do is a lender issue, not a MV issue.

With that said, the most similar comps for a big house + studio unit combo will be another big house + studio combo, not a duplex consisting of (2) 2bd units.

 

[MrLA]

Its DOA and no such thing as three ADUs--I live in California and never seen and City or County approve three ADU-as everyone in planning knows those are going to be used as three rental units .

You need to read up on sb9. How about a pool house, adu, and rec room? I have a property like that in Tarzana California. Also I am building a Jr adu and adu right now.

 

[George Hatch]

Its DOA and no such thing as three ADUs--I live in California and never seen and City or County approve three ADU-as everyone in planning knows those are going to be used as three rental units .

I've seen situations where the jurisdiction would allow an SFR + ADU+ Jr ADU + Guest house on the same parcel. Weird but doable on the conceptual basis.