Lot Splitting and Infill - Boise, Idaho.
Investor · Meridian, ID · Member since 2016 · 5 posts · 1 vote
Lot Splitting and Infill - Boise, Idaho.
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Developer · Boise, ID · Member since 2009 · 168 posts · 112 votes
9yWe do this all the time. We have a 11 lot infill project in the north end going on now along with a six unit condo complex. We've done well with this strategy and have been able to generate IRRs in the 30%+ range consistently.
There is a process with this strategy that you just need to go along with. You can't and won't change it so you just need to budget that time into your deal. The 11 lot sub will take us about a year total from the day we applied to subdivide to the day we sell our last lot. Our condo complex will be about 6 months worth of administrative and design work before we can start construction.
The best advice I can offer on this is to pre-flight your deal with the appropriate folks at the city before you start applying for permits. Just about everyone will be helpful at the city and will candidly tell you your chances of getting this deal or that deal done though the system. From a personality perspective, it's best to be a bit laid back when talking to the city folks. While they are helpful, they don't care about the economics of your project. Know that they can make your life easy or very hard. If it's the latter, there is little recourse so be nice. I've seen too many developers or wanna-be developers pound their fists on the desk only to walk out with their tails between their legs.
From a marketing perspective, we knock doors. Nothing else really works because you'll need time to get your deal done. Very few seller's agents will wait 6 months for a commission while you go through the entitlement and design process.
Your duplex idea is a zoning issue. You should get the parcel zoned appropriately before you do anything.
Good luck.
6 Replies
- Developer · Boise, ID · Member since 2009 · 168 posts · 112 votes9y
We do this all the time. We have a 11 lot infill project in the north end going on now along with a six unit condo complex. We've done well with this strategy and have been able to generate IRRs in the 30%+ range consistently.
There is a process with this strategy that you just need to go along with. You can't and won't change it so you just need to budget that time into your deal. The 11 lot sub will take us about a year total from the day we applied to subdivide to the day we sell our last lot. Our condo complex will be about 6 months worth of administrative and design work before we can start construction.
The best advice I can offer on this is to pre-flight your deal with the appropriate folks at the city before you start applying for permits. Just about everyone will be helpful at the city and will candidly tell you your chances of getting this deal or that deal done though the system. From a personality perspective, it's best to be a bit laid back when talking to the city folks. While they are helpful, they don't care about the economics of your project. Know that they can make your life easy or very hard. If it's the latter, there is little recourse so be nice. I've seen too many developers or wanna-be developers pound their fists on the desk only to walk out with their tails between their legs.
From a marketing perspective, we knock doors. Nothing else really works because you'll need time to get your deal done. Very few seller's agents will wait 6 months for a commission while you go through the entitlement and design process.
Your duplex idea is a zoning issue. You should get the parcel zoned appropriately before you do anything.
Good luck.
- Investor · Boise, ID · Member since 2015 · 87 posts · 40 votes9y
Hi @Seth Jacobsen, the AVID investors group covered this very topic at their meeting this week. You may want to reach out to @StacyA McBain on this.
Best of luck.
Claire
- Investor · Meridian, ID · Member since 2016 · 5 posts · 1 vote9y
Hi @Lee G.
Thanks so much for taking the time to share your experience. That is extremely helpful. The respectful, patient approach resonates with me. It's important as I begin my investment/development journey. Consistency and dedication will win the day.
That is great advice on the acquisition and zoning fronts as well. I am certainly not afraid to knock on doors and strike up a conversation. I'm also not a fan of direct mailing as it seems too impersonal for the area's culture. From what I have learned, there may even be potential to partner with an owner via TIC. I need to visit with a good title officer or investor with experience here.
Thank you again. I hope you projects go smoothly as winter moves in.
Best
Seth
- Investor · Meridian, ID · Member since 2016 · 5 posts · 1 vote9y
Thanks @Claire Fenton,
@StacyA McBain does indeed offer a great event for investors. I was fortunate enough to attend the one on Wednesday. It was great for me as a new investor. Lots of great people and Title One was kind enough to host. Unfortunately I didn't get to meet all the members there. Perhaps we can connect in the future.
Best - Seth
- 9yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
@Lee G. you must be a pilot if your pre flighting your deals :)
Oregon with all its plus's and minus does have a nice thing called a pre app conference.
it usually cost a grand or so to arrange one.. but they will have most of the departments you need to deal with there and ideas are brought up.. and you get a pretty good idea what your up against in those..
but time is the issue I have a little 3 lot one in Portland and we are almost at 18 months getting it approved... no zone change etc.. city of Portland is really tough .. other jurisictions in the area not so much.. Infill right now is UBER profitable...
We are also in Charelston SC and they really have it going on .. very organized although if your in the architect review zone that takes time but they move it through.. same thing though UBER profitable.
- Medford, OR · Member since 2016 · 114 posts · 70 votes9y
Hi Seth,
I live in southern Oregon and have done a fair amount of infill projects. The most important part is keep an open mind and let questions answered lead to more questions.
I have always been able to go into the city and across the counter ask enough questions to to have a comfort level and move forward with projects.
Here is an example of keeping an open mind.
I was looking at a single family, zoned single family. It did however have enough land in my mind to add two more houses. My research showed that the land was contiguous to a different zoning which was high density. This opened a widow to change the zoning on this piece of property.
Another challange I ran into was the access beside the existing house to what would become the access for two more houses in the rear of the property. The access was one foot short of the required width for firetruck access killing the project.
Through research and questions I discovered I could put a sprinkler systems in the houses at the rear of the property. This satisfied city requirements.
I moved forward with the project and it was a success.
Advise: keep an open mind a grill the heck out of the building dept. That is what we pay them for.
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