Logansport, IN · Member since 2020 · 11 posts · 4 votes
I’ve already checked zoning for the building. 4 story building. 2nd floor has 5 apartments already. 3rd and 4th floors need gutted and converted from commercial to residential.
Current landlord/lady has all units separately electric and water metered but is inside building. City code states all meters are to be outside of building. Does anyone have an idea of cost to correct this? Also, all bedrooms have to have windows and not all do. This will also have to be corrected.
I started looking for contractors to get an idea but was suggested I get it under contract first. I’d like to get an idea of cost to correct prior to getting under contract.
The current owner has offered to have her attorney send me a contract. I’ve asked for his info to have my attorney (don’t have one yet!) contact him and sort out the contract.
What contingencies should be in the contract to ensure I don’t lock myself into something that’s not going to be good. A good attorney will know well what to put when given the rundown of the situation right?
Rental Property Investor · Dayton, OH · Member since 2019 · 293 posts · 440 votes
5y
@April Savoie I’m not a attorney, but here is my two cents. If the building is currently operating but out of code, it’s a non confirming and you can continue the same use. However, once you file permits for a major structural change your usually required to bring it up to code.
You should only have 1 water main coming in for that size of building and should be talking about only one meter to move out if you have to. I’ve done a lot of these and it’s not crazy in most situations unless you have to tear up streets. If it’s already coming in to building, which it is, your not going to have a tap charge to connect. You shouldn’t. Plumber will just move meter to outside of building. Most of my situations have been under 10k with 10k being due to digging up sidewalk or something else like that.
On the metering issue, the city code is just saying that the city’s meters have to be located outside. You can have as many meters of your own as you want inside. I’m guessing that the existing apartments don’t each have a separate water service(pipe) connected to the water main in the street. The previous owner installed those meters so that they could legitimately bill the tenants for usage. They probably have one meter in the street for those apartments and they carry the account with the city, and then bill the tenants for usage. If this is the case, you’re going to want to leave it this way, and probably do something similar for the buildout of the other floors. The City will charge you a “system development charge” (SDC) for each new connection to their water main. This is usually $4-5K. And they might charge you a fee for cutting the pavement and degrading the road, and then you’ll have to pay a contractor to do all this work. Count yourself lucky that the water is already submetered inside the building and you don’t have to do it.
Logansport, IN · Member since 2020 · 11 posts · 4 votes
5y
That’s great news. The building commissioner made it seem like a big deal, “the meters are out of code”. He also said I’d have to rearrange the layout of apartments because there has to be a window to the open air per bedroom (which isn’t how the 2/1 or the 1/1 I saw is set up.
Rental Property Investor · Cincinnati, OH · Member since 2019 · 59 posts · 77 votes
5y
@April Savoie - I would first start by checking to see if there is an actual meter outside and call the utility companies to verify if there are separate services for each unit. If there are, and the meters are in the basement and not to code per your building inspector, then you will need to do something about it. If not, then what @Nate Bell mentioned is the case of the landlord billing back tenants (this is only legal in certain areas, so make sure you check your local laws).
In the case of open air, he is correct. You must have a form of egress in each bedroom for emergencies. If the building inspector is telling you this info, you need to listen or you can face serious fines. Do not go by the word of the current landlord. There is a reason they are selling. It's also worth it to check with the city to see if there are any open violations against the property.
Rental Property Investor · Dayton, OH · Member since 2019 · 293 posts · 440 votes
5y
@April Savoie I’m not a attorney, but here is my two cents. If the building is currently operating but out of code, it’s a non confirming and you can continue the same use. However, once you file permits for a major structural change your usually required to bring it up to code.
You should only have 1 water main coming in for that size of building and should be talking about only one meter to move out if you have to. I’ve done a lot of these and it’s not crazy in most situations unless you have to tear up streets. If it’s already coming in to building, which it is, your not going to have a tap charge to connect. You shouldn’t. Plumber will just move meter to outside of building. Most of my situations have been under 10k with 10k being due to digging up sidewalk or something else like that.
Logansport, IN · Member since 2020 · 11 posts · 4 votes
5y
Further communicating with current owner, there is one main meter which she is responsible for. She has had sub meters put in on the second floor for the second floor apartments and then bill back the tenants. They pay her their monthly rent plus they pay her for their usage. The city says this is against code. She did not get permits before having construction done. There were only two apartments when she purchased almost 3 years ago.