Investor · Windsor, Nova Scotia · Member since 2015 · 128 posts · 34 votes
Hi all,
I recently had one of my properties burn down. No people were hurt (thank God) but the house is pegged for demoliton.
Now, i'm in an interesting spot. I can decide to rebuild or to 'cash out' and just own the land. It was a 4-unit building and i'm allowed to put back a 4-unit building.
I have started discussions with the Nova Scotia Housing Authority regarding getting grants for building affordable housing.
4 units is as low as they'll go but they'll fund up to 25k per unit.
I have to agree to rent the units at slightly below market value........FOR 15 YEARS.
Has anynone ever gone through this process? Used these types of affordable housing grants - and specifically for new developments?
Around here it's not really cost-effective to build anything that small at the moment.
Unless demand is up in Windsor / Falmouth, does it really make sense to build? Why not tear it down; get your taxes dropped to vacant land; take the money and buy another 4-6 unit?
Hi Roy. Thanks for the thoughts!
I was leaning towards building simply because I wanted to 'max out' what the insurance company would give.
The markets aren't hot per se, well Falmouth is to be honest....but I haven't yet been presented with the options of how much insurance is willing to pay out for A. The rebuild and B. The cash out.
So you would simply take the money and put towards something else?
Roy N.
Unless there is a strong demand for new units (your fire just improved the vacancy rate) and you wouldn't just be pulling the better (of the poor) tenants from other properties, I would not consider rebuilding at this time. You also need to look at the cost of building something as small as a 4-unit. If you want to build anything more efficient than a minimum code bundle of sticks, you could be looking at $120 - $130/sq ft.
I'll bet you can replace the lost revenue {much} more cheaply buying another 4-6 unit.
What is the zoning for the area (not just your lot)? Would it allow you to merge lots for more units/higher density? If so, perhaps sitting on a serviced lot and working on your neighbours may be a better long term strategy.
I too want to build - in my case a Passivhaus set of {stacked} townhouses and a 20 - 30 unit Passivhaus apartment complex - but now is not the time here in NB.
Is the old doctor's house over on Gray still for sale or the 4-unit on King (close to your work)?
Really interesting. I love that you know the properties in Windsor!!!
Actually, I'm trying to close a deal on another 5-unit place (without the insurance $ involved) on Gray (not the Dr house).
Perhaps I should just use the insurance money for that.
I agree with your costing as well - in fact I've looked at almost as high as $140 per sq ft.
The zoning varies - my lot is R2 but the 4-units that weren't there were grand fathered in and I can replace the 4 units. You certainly have me thinking else wise now!