Real Estate Agent · Fillmore, CA · Member since 2017 · 27 posts · 8 votes
Hello!
I currently own a 900 sq ft 2/1 home on a 6,000 sq ft lot. I’m thinking of adding a 3/2 home in front of it and renting it out. We are zoned for multi family homes so that’s not a problem, I just don’t know where I would start getting estimates on how much it would cost to do this. I’m not too concerned of the added value it will bring as I do plan on holding onto this property and using (eventually both homes) as rental properties. Any guidance would be much appreciated!
Also, just a side note- on the left of my house there is an apartment complex and on the right of us there is a triplex, there’s only about 4 SFH’s on my street the rest are multi family and apartments.
Rental Property Investor · Steamboat Springs, CO · Member since 2017 · 255 posts · 154 votes
8y
In a lot of areas in the country, the price to build is way too high to justify new construction to keep as a rental. Maybe if it's a modular or manufactured.
In terms of where to start getting estimates, call local building companies.
If you're a relatively new investor and don't have personal experience in home building, new construction is a pretty hefty way to get in the game...if you have enough money to build a new house, you might want to think about using it to buy existing rentals.
Rental Property Investor · Steamboat Springs, CO · Member since 2017 · 255 posts · 154 votes
8y
In a lot of areas in the country, the price to build is way too high to justify new construction to keep as a rental. Maybe if it's a modular or manufactured.
In terms of where to start getting estimates, call local building companies.
If you're a relatively new investor and don't have personal experience in home building, new construction is a pretty hefty way to get in the game...if you have enough money to build a new house, you might want to think about using it to buy existing rentals.
Real Estate Agent · Davis, CA · Member since 2013 · 41 posts · 16 votes
8y
@Larissa Luna Your city planning/ building department is the first place I'd start. While it might seem obvious that a home will fit on the lot, you need to be aware of the specific zoning and building requirements for your lot. Setbacks and coverage ratios are just a couple of restrictions you will have to comply with.
Developer · New Orleans, LA · Member since 2015 · 1k+ posts · 898 votes
8y
@Larissa Luna It is doubtful that your zoning laws will allow a second building not connected to the original building on the same lot. As mentioned by Ken, ask your city planning/building department before doing too much research. Based on what other have stated on BP, you're likely looking at $125-150/ft2 to build low/middle end construction in California.
Additionally, a 6,000ft2 lot is not that large, and trying to fit another house on it would be a challenge, particularly with access and parking.