Multi Family Property

[Raymond Hill]

Hello,

So I was wondering, I noticed that there are a lot of mulit families built in the 1880s - 1920s and I have not seen any new constructions for a multi family property in Rhode Island. Is there a reason for this? My logic tells me that we continue to build single families because it is profitable (people will buy). I believe people would buy a new construction if it was a 3 or 4 unit property. Random thought maybe, but just wanted to see everyone's take on it.

[Brandon Ingegneri]

The largest reason is because zoning ordinances and regulations have changed in a number of these cities and towns.  For example, I own a 5 unit property in northern RI.  Across the street, I purchased a vacant lot that I made into a parking lot for the 5 units.  In the 80's, a 6 unit property sat on that land and subsequently burned down.  I approached the city about what if anything I could build there.  I can't even put a garage on the land without having to get variances and jump through a bunch of hoops.  

Same city.  2 unit property that had potential for a 3rd unit.  I inquired about legally renovating everything to make it a legal 3.  I purchased the abutting vacant land also and merged the lots.  Even still, I was denied due to not meeting the square footage minimum with the lots.  

If you compare my two deals, the lot that the 5 unit currently sits on is only moderately larger than the two combined lots that I wanted to convert my 2 unit to a 3 unit.  If you have something existing and are grandfathered in, your in good shape.  If you are trying to expand the zoning scope, it is a process.  If you are building new, you will need to typically jump through a few hoops depending on the unit count.  However, I have seen with new construction, that side by side units require much less red tape to build new as opposed to a traditional "decker" style multi.