I just bought a property in Central district of Seattle, the site is LR-2 zoned. The house is in a bad shape and looks like it will not be worth restoring it. The lot size is 2880 sq.ft.
I was wondering if anyone has experience with construction in this area. As per the guidelines one can make 2 low rise condos/ SFH/ Town home, 1.1 is the allowed area. Any references, advise, steps to proceed are appreciated.
I used to live in Seattle, but have never built anything there. I'm sure the permitting process in King County is rather extensive, especially in Central Seattle. Look into the permitting and civil requirements before you start building anything. Items likely to consider.
1) Max buildable interior space allowed by code
2) Max number of units
3) Max building height
4) Utility hook fees and process
5) Engineering requirements for foundation, framing, sewer, electrical
6) Average cost to build from at least three different builders
7) Insurance requirements
8) Liability requirements
9) Bonding requirements (your builder's should know this)
10) Efficiency rating requirements - determines windows and insulation products you can use.
If you answer all of those you will be in a pretty good starting place.
Thanks a lot, I will check mark each as I move along the project.
Welcome to the neighborhood. I own duplex on LR2.
PM the address I am sure I looked at your property before.
Deciding between building two SFH or fixing and renting. I am in a dilemma. To fix this property it would take about $125K. Yes that would definitely add about $100K in equity and also the property will rent for $2500 a month. Also with refinance, I would be able to get all my investment out of the property and thus the returns are infinite.
Other option is to build two homes, the assumption is it will cost $150/ sq ft to build two homes of 1500 sq.ft. And I believe there is cost of permitting, architect and engineer. The project will also take three times as much. It would require to bring in partners too, hence the profit will be similar to case 1 of remodeling.
What will you the experts do in this scenario? Let me know what more information is required as this might not be enough to provide recommendations.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.