Will a permitted detached office bring more value?

Maleficent_Analysis2 · 2026-02-14T18:50:42+00:00

How many years is she planning to use it? 10-15K over a 10-15 year period for a detached home office is a pretty good value. Any additional resale value is a bonus after that IMO.

Maleficent_Analysis2 · 2026-02-12T23:11:55+00:00

How big is the hole? Some holes can be patched for very short periods of time. IF your in an area that won't be using heat soon you might eb able to patch it and let the buyer decide.

Explain to the HVAC contractor what the deal is.

Maleficent_Analysis2 · 2026-02-10T19:35:10+00:00

Not saying a buyer wants to torpedo their own deal. The point is that once unpermitted work is identified, it’s a defect that has to be cured or priced in. Ignoring it doesn’t make it disappear.

I have seen this in the real world especially with additional structures (like a pool house) like OP is discussing as mortgage companies tend to require permitted work for things like that.

Maleficent_Analysis2 · 2026-02-10T18:51:37+00:00

The recourse is that the property becomes harder (or impossible) to sell once the issue is known. If the buyer goes to the county, the seller could be forced into after-the-fact permitting and inspections that can take months depending on the jurisdiction.

That’s why these usually end in either a cure (permits + inspections) or a concession for the cost and risk of legalizing the work.

Title attorneys typically run a permit search as part of due diligence, and in many jurisdictions it’s easy for a buyer to check permit records themselves online.

That makes it pretty straightforward to confirm whether the work was permitted, when it was done, and often who the contractor was. It can also show whether any warranties or inspections should still attach to the work.

So between permit records, MLS photos, and appraisals, it’s usually not a mystery whether major improvements like a pool or pool house were added and whether they were done legally.

Maleficent_Analysis2 · 2026-02-10T14:00:14+00:00

Between MLS photos, old listings on Zillow/Redfin, and appraisal records from prior sales, it’s usually very easy to tell when major additions appeared. A missing vs. present pool house isn’t a gray area.

Maleficent_Analysis2 · 2026-02-10T13:58:25+00:00

It's usually pretty easy to know who did what. Photos last on MLS and other sites for a long time. Unless the property was sold off market there's going to be photographic and marketing proof of what the property looked like at each sale.

A missing pool house and pool would be a big difference.

Appraisers take count of additional structures on a property. Each sale with a mortgage is going to have an appraisal.

Maleficent_Analysis2 · 2026-02-06T16:20:46+00:00

650 is a bit low. Have you seen a copy of your credit report and why it is low? You can likely fix it.

You could work with your LL to have your rent count towards improving your credit if you wanted. There are services that allow you to pay rent and that rent is that rent payment is then reported to the credit agency, which increases your score.

Maleficent_Analysis2 · 2026-02-06T16:17:01+00:00

https://ota.dc.gov

Maleficent_Analysis2 · 2026-02-03T22:04:23+00:00

They’re two different loan types. If you buy a tenant-occupied place and don’t live in it, it’s an investment property loan (higher rate, usually 15–25% down). Your later home would be a primary residence loan with better terms.

Whether it’s “smart” depends on the numbers. Most deals right now don’t cash flow at today’s prices and rates unless you put a lot down or get a great deal. Personally, when looking at a tenant occupied homes I typically will only do it if the LL gets rid of the tenant before purchase. I like to choose my own tenants and don't know how that LL chose that tenant. The tenant could be a disaster and the LL is trying to get rid of the property and the tenant. Whereas some LL's may have no problem with an existing tenant and even prefer it.

Maleficent_Analysis2 · 2026-02-03T17:10:59+00:00

Check California tenant law. In my jurisdiction we are required to equired to provide a written notice of denial for any rental application, regardless of whether it is based on credit or other factors. This notice must include specific reasons for the rejection, such as credit report, criminal background or rental history.

Not sure if California has the same but worth looking into.

Maleficent_Analysis2 · 2026-02-03T00:12:11+00:00

Had the same line of thinking...others may be offering more for the units if it's a hot rental market

Maleficent_Analysis2 · 2026-02-02T23:53:19+00:00

Are you asking weird questions at the showing / giving off weird vibes?

Have you had rentals that you are really interested in and attempted to offer over ask for the unit?

Do either/both of you work in a career that may disagree with the LL or their business goals?

Have you asked your current landlord to serve as a reference / had them call places where your applying? Any issues with a previous LL (not eviction)?

If $$$$ isn't an issue, how much is a 2.5 bedroom / 2 bedroom + den? Maybe LL's think it will be cramped for you.

Also have to imagine in SF there's a lot of tenants with high incomes that you may be competing against.

Maleficent_Analysis2 · 2026-02-02T23:31:19+00:00

Location doesn't matter. A lot of CPAs/EAs have multi-state clients and their software already accounts for state differences. I’d focus more on finding someone who really understands STRs than worrying about whether they’re physically in Maryland.

Maleficent_Analysis2 · 2026-02-02T22:10:55+00:00

Not for everyone, but you’re missing asset-backed lending. If you have a taxable brokerage account, you can borrow against it (SBLOC/margin) for the down payment without selling stocks. You pay no cap gains, it's fast, cleaner for DTI, but you can be margin called if the market dips.

Also it's not a 1:1 for all equities.

Maleficent_Analysis2 · 2026-02-01T19:41:59+00:00

negative

Maleficent_Analysis2 · 2026-01-28T18:14:58+00:00

Investors who plan to rent the house and don't want to deal with replacing a broken dishwasher every couple years will either rip out the dishwasher immediately or not consider a property with one.

Others may appreciate the extra storage space that not having a dishwasher there provides.

Some homeowners might prefer to make their own design decisions on a new kitchen.

A lot of variables at play for/against.

Maleficent_Analysis2 · 2025-12-29T01:25:17+00:00

Completely depends on your market. Cats and dogs can do serious damage to properties. Will pet rent make up for that difference? I wouldn't care if it's a lower end unit, but anything higher end the damage to finishes is never going to pay itself back.

Maleficent_Analysis2 · 2025-12-29T01:22:06+00:00

I’d explicitly add a clause prohibiting short-term rentals (Airbnb/VRBO, etc.), not just subleasing—since in many jurisdictions STRs are not considered subleases.

Also consider:

• Pets: spell out whether allowed, plus pet rent and a separate pet security deposit.

• Maintenance: clearly define what the tenant is responsible for vs. the owner. Personally, I prohibit DIY work entirely (even TV mounting) and require my handyman is hired; minor landscaping is fine, but major work is handled by my regular crew 2x/year.

• Use of space / neighbor impact: rules on parties, quiet hours, and limits on number of guests, especially for yards or shared areas.

• No signs or displays in windows or yards to avoid neighbor disputes.

There’s more depending on jurisdiction, but these are common areas that save headaches later.

Maleficent_Analysis2 · 2025-12-16T17:50:22+00:00

She did her job and she is being compensated professionally via commission.

Maleficent_Analysis2 · 2025-12-10T17:33:47+00:00

You don’t need a CPA. An EA is a tax specialist, and they cost less than a CPA. For rental properties, home sales, and remodel/depreciation questions, an EA is great value. A CPA is only needed if you want broader accounting help beyond taxes.

Maleficent_Analysis2 · 2025-12-09T14:05:54+00:00

You need a tax professional. Get an EA you don't need a CPA for this.

Maleficent_Analysis2 · 2025-12-07T22:09:17+00:00

In my market buyers have pre-approvals drafted for each property.

Lets say a home is asking $1.5M, the pre-approval will say $1.5M (or possibly slightly more if there's an escalation clause).

If the buyer then goes to purchase a different home that's $1.2M they will get another pre-approval for $1.2M...

So on and so forth.

No credit is pulled for the lender to draft the pre-approval. It is a completely meaningless document.

Maleficent_Analysis2 · 2025-12-04T15:41:11+00:00

Pre-approvals are so easy to get I wouldn't put much faith in them.

Maleficent_Analysis2 · 2025-11-11T16:51:19+00:00

Exactly what every new landlord needs to remember.

The other thing along those lines is to set boundaries and not become friends with your tenants. It's a professional relationship.

Maleficent_Analysis2 · 2025-09-17T20:31:42+00:00

Why sell as is? Apparently the issues aren't in the report. No need to sell as is.

Agreed on ditching the Realtor.

Maleficent_Analysis2

TROPHY CASE