Accountant · Member since 2020 · 9 posts · 6 votes
Good morning!
I am hoping to purchase a vacant lot 2 doors down from me zoned for MF. There is a duplex on either side and I am househacking the duplex 2 doors down. I would like to start a pro forma for building a duplex to see if the asking price for that land would work for me or not. I am thinking I need to speak to an architect prior to being able to do the pro forma. How does someone pay all these architects just to analyze if a piece of land will work for them or not? As well as the soil test. That has to be done prior to buying as well correct?
Developer · Tampa, FL · Member since 2020 · 84 posts · 59 votes
3y
Good morning,
Florida Architect and land developer here. Sounds like you have a fun little project. Most of the time in Florida (depending on location) geotech reports are not done for single or two story buildings. Most residential construction (in Florida) is done with slab on grade or a stem wall system. That being said I agree with Nicola, reach out to the owner of the other duplexes and see if they have any reports available, it never hurts to ask. You wont have to worry about slope here in Florida. As for the proforma, construction costs vary based on location, availability to materials and workforce. Reach out to a local contractor with your basic plan and elevations and ask how much per square foot and timeline they currently have. To save time you can take pictures of the other duplexes and get the interior photos from the listing. The contractor should be able to give you a rough sf cost. Once you have the cost to build, your assumed cost of land, financing terms (monthly payment), and local rent. You can reverse engineer the equation to see if your land is priced right.
Reaching out to the neighbors may also be harmful because they may not know this parcel is for sale and since they have other duplexes they may be interested in this land. Or the neighboring duplex owner may also own this land, then ask yourself "why are they selling this piece rather than building on it themselves." In the current land market I can almost guarantee this parcel is over priced.
Architect · Bay area, CA · Member since 2020 · 25 posts · 26 votes
3y
Heya, architect here. I don't have a proforma to share, but an initial feasibility study shouldn't be too expensive, a thousand or so. If you are planning over 4 units, on a slope over 15% (if there is any question of this, a topographic survey will likely be required prior to architect engagement, but if you're in Florida there might be other triggers), imagining a complex building with offset structure you will need an architect and structural engineer anyway. If the construction on the neighboring homes is recent, i would try reaching out for their geotech reports, but it is a good idea to get one to help design an appropriate foundation. I don't think it *needs* to happen prior to purchase, but it's not a bad idea if youre on the fence.
Developer · Tampa, FL · Member since 2020 · 84 posts · 59 votes
3y
Good morning,
Florida Architect and land developer here. Sounds like you have a fun little project. Most of the time in Florida (depending on location) geotech reports are not done for single or two story buildings. Most residential construction (in Florida) is done with slab on grade or a stem wall system. That being said I agree with Nicola, reach out to the owner of the other duplexes and see if they have any reports available, it never hurts to ask. You wont have to worry about slope here in Florida. As for the proforma, construction costs vary based on location, availability to materials and workforce. Reach out to a local contractor with your basic plan and elevations and ask how much per square foot and timeline they currently have. To save time you can take pictures of the other duplexes and get the interior photos from the listing. The contractor should be able to give you a rough sf cost. Once you have the cost to build, your assumed cost of land, financing terms (monthly payment), and local rent. You can reverse engineer the equation to see if your land is priced right.
Reaching out to the neighbors may also be harmful because they may not know this parcel is for sale and since they have other duplexes they may be interested in this land. Or the neighboring duplex owner may also own this land, then ask yourself "why are they selling this piece rather than building on it themselves." In the current land market I can almost guarantee this parcel is over priced.
Developer · Boulder, CO · Member since 2018 · 530 posts · 365 votes
3y
@Heather Wear Heather your first step should be to run some preliminary analysis to get a sense of the performance and fragility of the deal. This can and should be done before spending time and money with third parties.