My first apartment complex

8 Replies

I started several years ago buying vacant land parcels at auction and reselling later for profit. Shortly then graduated to single family rentals for several years. Then bought an existing 6 unit bldg, rehabbed and rented then bought a small vacant parcel and built a 4-plex. Have held the rentals for several years and supplemented with doing rehab house flipping.  Recently bought my first vacant 8.72 acre multi-family parcel (currently zoned as R-3 with several allowable residential uses from sfr ,2-4 and Multi or group home.

Wondering what advice the more experienced apartment developers can give to help me along this path.

May also be looking for investor partners with similar experience and goals.

Thanks for the input,

Robert Powers

@Robert Powers

You typically want to get approvals before you close on a development parcel. That being said you need to determine highest and best use based on the area and demand. 

Once you have an Idea of what your thinking you then check with the city or county to determine what is required for all approvals including site plan and building permits, proffers, water/sewer tap fees, bonding requirements, inspections and CO process and time frame for all approvals.

You also need to check with the utility companies and get an idea of availability and cost estimates from them for water, sewer, power, gas, cable, installation and connection requirements, tap fees, hookup charges, transformer location and relocation, power line and power pole relocation issues.

Check to see if you have to install any manholes,fire hydrants, curb, gutter, sidewalks, street signs, street lighting any specific street design or access requirements,.

Check DOT requirements for access, stop lights and permits, traffic studies

DWQ requirements for permits, permit fees, time frames

This is a broad overview of the process and your civil engineer can handle all of this but it's good for you to know exactly what's required.

@Greg Dickerson the property is already zoned R-3 for multi-family which allows 3 unit buildings and up. Could you be more specific on what you mean for highest and best use based on demand?? How do I figure that out?? Thanks for your input. You've already brought up lots of things I havent really considered. I did call the local utility and asked about the availability and location of water and sewer, which available and proximate. I will have to pump to the nearest sewer connection. Does that mean I will need a large tank or multiple tanks onsite?? Is that what a lift station takes care of??

Thank, Robert

Originally posted by @Robert Powers :

@Greg Dickerson what are DWQ requirements??

 Division of Water Quality - they regulate stormwater runoff requirements when developing property.

Originally posted by @Robert Powers :

@Greg Dickerson the property is already zoned R-3 for multi-family which allows 3 unit buildings and up. Could you be more specific on what you mean for highest and best use based on demand?? How do I figure that out?? Thanks for your input. You've already brought up lots of things I havent really considered. I did call the local utility and asked about the availability and location of water and sewer, which available and proximate. I will have to pump to the nearest sewer connection. Does that mean I will need a large tank or multiple tanks onsite?? Is that what a lift station takes care of??

Thank, Robert

You will need to check with the utilities engineering Dept to determine how to handle the sewer. You never know what they will require. 

You have to take a look at the surrounding area and what is missing. It could be that apartments are what are needed, a strip center, single-family, office building etc. you have to look at rental rates, vacancies, what is surrounding the property? Rooftops? Commercial?