Rental Property Investor · CA · Member since 2011 · 82 posts · 32 votes
A national builder has just put up new homes on our block. I have gotten offers from developers to purchase our lot which is owned free and clear. I have dreamed of developing the lot, but have no professional know-how in evaluating the financials/costs of new construction, permiting, environmental reports, etc. to come to a conclusion if it would be a profitable/worth my time. Otherwise the lot is an easy sell.
The preliminary research i've done, with proper re-zoning/approval, I could build around 6-8 SFRs. I know El Cajon is very pro-growth right now so that should help a lot.
Being a buy-hold investor, I lean more towards putting up multi-units apartment rentals. But there could be much more value in building detached homes.
Would any fellow BPers, with this experience, be willing to meet to discuss the future of this lot and help put together some numbers?
Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
10y
Hi Rami, I need to put some experience on my company's belt, are you open to joint ventures for this potential development? I could give you inputs on hard construction costs, and perhaps build it with you, or witness them on the side? I don't have the time to process permits, maybe I could do the paperwork/drawings and you could do the legwork to the city?
Lender · San Diego, CA · Member since 2014 · 143 posts · 38 votes
10y
@Rami W., the good thing is you have some options and leverage. You should reach out to @Karen Margrave. She is a developer based in Orange County area and very active on BP. She would be a great resource to explore your options and get some insight into the development process. I know a few developers in San Diego County that I could put you in touch with as well. Best, Antonio
Civil Engineer · Orange County, CA · Member since 2012 · 189 posts · 45 votes
10y
Rami,
Looks like you have a lot of help but be prepared for it to take a while especially if you are looking to rezone. If you need help on the engineering side of things let me know.
Rental Property Investor · CA · Member since 2011 · 82 posts · 32 votes
10y
Here's what I'm thinking.
Currently zoned RS-20 = Residential, Single-family, 1 unit/20,000 square feet
General Plan = LR zoning = LOW DENSITY RESIDENTIAL (3-10 units per acre)
Ideally I would like to rezone from RS-20 to RM-4300 if the city will allow it. Which would hit the 10 unit limit in accordance with the General Plan.
RM-4300 Residential, Multi-family, 1 unit/4,300 square feet of total lot area or,
44,000 sq/ft lot / 4,300 = ~10 units
Then finance the construction on a 10 unit complex.
Keeping the property as a long-term rental complex seems like an easier process than splitting the lot up, establishing an HOA and selling individual lots. Will probably pay off much more in the long run.
@Chad Ballard I may need you. I've spent hours combing through documentation on the cities website and have found no clear cut answer on if i'll be approved for a rezone. I suppose it just come down to the discretion of the committee. Is that ultimately what it comes down to?
Civil Engineer · Orange County, CA · Member since 2012 · 189 posts · 45 votes
10y
The usual process is an initial application to amend the Zoning Code. This gets distributed through the city departments to see what effect the zoning change will have. Then with approval it goes on the to Planning Commission for public review. The exact steps vary a little from city to city but that is the typical process. Need to alert the neighbors and have a public meeting to listen to any concerns. Then final approval comes from the planning commission.
Let me know if you would like some help I am happy to do what I can. Talking to the city is probably the best option. You can get a feel for how they would feel about the change. If you are making a drastic change to the current zoning it will be tough to get it approved. What are the neighboring properties zoned as?
There is no clear cut rules that you will find in the municipal code if the zoning change will be approved or not, only the rezoning (or amendment) process (Title 17.20.020).