SFR/adu/duplex/2 SFR's ?

[ZZGAMAZZ]

The subject is an 8000 sqft improvement on 2 acres atop a hill in unincorporated LA County in the Diamond Bar-Walnut-Hacienda Heights area.

I did not describe it in the first paragraph as a SFR because I'm not sure...

The original 1st floor has a 2nd floor mirrow image addition with permits. The 2nd floor addition has a bonus room that leads to a 3rd area of approximately 3000 sqft (also permitted) above the 5 car built-in garage that is attached to the 1st floor of the original unit. This 3rd area has a separate entrance, separate kitchen, and separate access to the garage below--but also integral to the 2nd floor of the "main unit" because of the bonus room.

When I discussed the property with the owner before inspsecting he continually reiterated that he and his family "uses the entire house all of the time" and in retrospect I think he was trying to convince me before-the-fact that the entire improvement is integral to the GLA rather than an ADU--or a separate SFR, or a duplex.

My gut feeling is that the proverbial market isn't going to tell me squat about this one, and my SOW includes lender guidelines extending the search radius 10 miles, but within 3 months.

This is as complex as its gets in my opinion; and the complexity probably allows me the creative liberty to call it as I see it either SFR or ADU. The owner provided County building permits for everything, and I'm thinking about visiting the County to discuss the property, but I'm not sure that anybody at the Counter will be prepared/able to pigeonhole the improvements into a definition compatible with appraisal verbiage.

Any thoughts? (and yes, I'm being well compensated, as always)

 

[Randolph Kinney]

Can you post any exterior photos?

Are the ADUs separately metered for gas, water, electricity, etc.?

Having exterior entrances is one thing, having uninhibited access internally is another. Does the property as a whole have a functional utility of a single family home (design, flow, access, living)?

 

[ZZGAMAZZ]

I will e-mail you some photos. The client who ordered the appraisal insisted that I send him lots of photos of this magnificant estate. I sent him 1 front photo with the comment that the owner probably spent $200K on upgrades, and needs to spend another $250,000 to establish the condition that an estate of this types merits.

Only one meter. Entrance to the area above the garage from the 2nd floor of the original construction is seamless via a game room.

You ask about whole house functionality. My condo here in the ghetto is 1000 sqft and I've never been in one of the bedrooms for about a year...open the door every now and then to show the puppy what's behind the door...and towards that end I might be lacking in estate-mentality-competency. Truthfully the improvements do flow "unabashedly" is the only word I can think of. The 2nd floor walls are covered with a streaming hand painted mural of the house itself in an idyllic meadow, designed so that the view out the real windows corresponds to the view into the mural. My first thought upon approaching--electronic gates, 2 acres atop the hillest hill in a rather ritzy neighborhood, but 40% usable pad and the rest a bare dirt hillside...was of a modifed cap COD with dormers, relatively steep roof, siding, no porch, etc.

I was somewhat disappointed in the quality of improvements...

 

[Mike Kennedy]

start with the County Code definition of ADU.



contact the Building and Safety Field Office serving your area


http://dpw.lacounty.gov/general/facilities/app_building.cfm



http://dpw.lacounty.gov/bsd/index.cfm?p=csg

 

[Metamorphic]

Tough One!

Tag for monitoring.

 

[CANative]

That structure in that location is probably a zillion dollar property and no one is going to buy it for income production. And (most) people with that kind of money don't need rentable ADU's. I would call it a large single family residence with an in-law suite.

What kind of views does this property have?

 

[Randolph Kinney]

If the subject property does not fit with neighboring property profiles, you could have a HBU issue.

 

[Mike Boyd]

If the subject property does not fit with neighboring property profiles, you could have a HBU issue.

I agree. How about functional depreciation for White Elephant status?

 

[ZZGAMAZZ]

Panoramic views.

HBU as an 8000 sqft SFR or a 5,500 sqft SFR with a 2,500 ADA both appear to be equally acceptible HBU (just my opinion without market data at this point in time)

I am participating in a thread on functional depreciation in the General Forum and White Elephant status, per se, does not qualify.

[I did not know that others had posted entries on the Thread. Sometimes I get an automatic e-mail notification and sometimes not although I do not change any settings. Does anybody know why this happens?]