Rezoning for a Condo Conversion
This is my first post in awhile. I've been around, but haven't been posting. Much has happened since my last post, but I won't bore anyone with the details. In short, I began wholesaling, and recently ran across a lead that has lead me to post here.
The lead is a multifamily in the northern Boston MA area with good potential as a condo conversion. The issue is that the numbers make sense for a 3+ condo conversion, and the house is zoned 2 family. From looking over the area, talking to the owner, and town, it looks like the town would approve 3+ units, but of course, no one can make guarantees until going through the zoning board of appeals process.
This is typical of several leads I get. The owner prices the property based on what they "think" can be built on the property. The deal is good if this is true, but nothing can be guaranteed until going through the rezoning processes, and the process costs money for plot plans and possibly architectural drawings.
Back to the lead above. I've decided that I want to attempt the rezoning process and condo conversion on this property; I have no personal experience in these areas. The reason for going through the process is twofold 1] Learn the rezoning process, and see if there is a low risk way to apply this to other leads. 2] Try a rehab, and see the process through form start to finish.
My goal in this post is to update the status of this deal and have others give their opinions. So, here were go:
The plan is to first get the property under contract, with a 14 day inspection contingency, and then to draw up a purchase and sale contract with a lawyer; certain amounts of earnest money would be put down after milestones are met in the rezoning process (this was recommended in other posts). Finally, either follow through with the rehab, or sell the plans.
I'm in the processes of agreeing on a offer which should come back tomorrow.
Some of the gaps right now are:
1] Should I partner, hire a GC, or find my own subs? I'm leaning towards partnering. Feel free to PM me if you want to discuss.
2] How to proceed with the inspection period: I made, what I think is, a conservative estimate on rehab, but would like to get a professional opinion. Should I hire an inspector/contractor, have some GCs look (possibly pay them) look over the job, or immediately look for a partner?
3] How to get plot plans and drawings for the rezoning process? pay out of pocket to a professional, look for architecture students on craigslist, etc., or again partner with an architect.? Right now, it looks like I'll have to pay out of pocket.
Enough for today. I welcome any feedback. Thanks.