Adding units in a multi-family

Adding units in a multi-family

Boston, MA · Member since 2017 · 25 posts · 19 votes

Hi everyone - I have a question regarding adding additional units to a multifamily building in the Boston area. I've seen a few properties that are massive (like 4,000-5,000 sq feet) that are currently either 2- or 3- family homes. I think the better use of the space, and obviously better cash flow, would come from adding an additional unit to these properties to bring them up to a 3- or 4- family home. Assuming I can get the zoning & required permits no problem, does anyone have any idea what costs for something like this would be? Including separating out the heat/elec, adding a kitchen & bathroom and other construction. Would 50K per unit be in the ballpark or is that way off? Has anyone in Boston done something like this?

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Wakefield, MA · Member since 2017 · 6 posts · 9 votes
9y

Hi @Haley M., 

Inspectional services at 1010 Mass ave 5th floor will have the answers for you. There is a zoning / plans examination counter and are there to answer any questions. If you ever have any questions on permitting in Boston send me a message and I may be able to help. I am a permit expediter for a GC in Boston and permitting can be tricky. ISD is open until 7 on Thursdays if you can't get out of work early. 

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  • Wakefield, MA · Member since 2017 · 6 posts · 9 votes
    9y

    Hi @Haley M., 

    Inspectional services at 1010 Mass ave 5th floor will have the answers for you. There is a zoning / plans examination counter and are there to answer any questions. If you ever have any questions on permitting in Boston send me a message and I may be able to help. I am a permit expediter for a GC in Boston and permitting can be tricky. ISD is open until 7 on Thursdays if you can't get out of work early. 

  • Boston, MA · Member since 2017 · 25 posts · 19 votes
    9y

    Thanks @Jamie Ryan - is the process the same in towns like Revere, Lynn and Chelsea? That's where I've seen a lot of these places.

  • Wakefield, MA · Member since 2017 · 6 posts · 9 votes
    9y

    @Haley M. every town is a little bit different but the process has generally the same steps. One quick way to learn about what a town requires is to call them and ask to speak w/ zoning or a plans examiner. Find out what they will allow and also what they require to pull a building permit. 

    Lots of towns require stamped plans and affidavits from an architect, insurance from contractor and a construction license. Building permit applications are generally found online. 

  • Investor · London · Member since 2017 · 160 posts · 82 votes
    8y

    Hi Jamie @Jamie Ryan, 

    Many thanks for your replies. Do you mean to go to 1010 Mass Ave to ask about properties one is just considering to buy? Or already own? I am looking for a project in Boston but it's not scalable to ask zoning about many potential projects.

    Boston desperately needs more housing units so one would think they might be open to densifying ( especially in the slightly less dense areas like Roslindale, Hyde Park etc) but I imagine alot of No's from any zoning process. I am close to ruling out new investment in Boston because of the prices but want to make sure I'm not closing the door on some creative (but legal) ways of creating new housing. Thanks again! Jennifer

  • Investor · London · Member since 2017 · 160 posts · 82 votes
    8y

    @Jamie Ryan, apologies, I just figured out how to do this tag thing. I'm not sure if you'll see my prior post.

  • Rental Property Investor · Boston, MA · Member since 2012 · 257 posts · 139 votes
    8y

    Hi Haley,

    Assuming you can get zoning and permits is a big assumption. That being said, I do have a permits guy and zoning guy I could connect you with. First do some research in your target areas. You need to understand whether their are FAR requirements and minimum lot sizes. For example, in a C-1 district in Cambridge you need at least 1,500 square feet of lot for each dwelling unit. You might be able to get a variance but don't count on it unless you have really figured everything out.

    As for the actual building logistics, remember you need two points of egress for each unit. This means you might need to build exterior steps. In many areas around Boston heat and hot water are included so I wouldn't worry about breaking up the heating system. Of course it depends how the building is heated. If there is one boiler, breaking up the heating makes no financial sense. Separating the electrical is crucial. I have done that a couple of time. Expect that you may have to fully redo the electrical because of old wiring. In addition, you'll likely need to add hard wired / communicating smoke alarms once you redo a certain percentage of the electrical. The amount I paid for electrical rewiring would be completely anecdotal so I don't even want to say. 

    Long story short, there is no way to come up with a per unit price without specifics. Unfortunately in our area we are dealing with very unique and often old buildings.

  • Developer · Boston, MA · Member since 2017 · 29 posts · 21 votes
    8y

    @Haley M. Before you can determine the cost to actually build out the unit you have to figure out whether you legally can. The other responses are spot on, each town is different in terms of whats allowed "by right" both from a use perspective and from a dimensional requirement perspective. I do development full-time in South Boston, East Boston and Dorchester, primarily but have also looked at many potential projects in Chelsea, Revere, & Somerville. 

    When you identify a property where you think there may be an opportunity to add value by adding units or SF, start by looking at both the "Use Regulations" and Dimensional Requirements" or in Revere's case its called "Dimensional Controls." To determine if what you want to do is within the current rules. Here's an example of Revere's and every town will have this, most of them are on this Municode site:

    https://library.municode.com/ma/revere/codes/code_...For example, I was looking at a property on Winthrop Ave, right next to the Beachmont T stop. It was a legal two family, but it was huge and already had an illegal unit built out on the third floor. However, the property is in the RB zone and that only allows for Single Families and 2 families, so, by right I could not legally add the 3rd unit and if I bought that property I would have to remove it to comply convert it back to a 2 family to comply. 

    Most of the properties you will see in and around Boston will be "non-conforming" meaning you'll need to go through the zoning process. As the others mentioned, this is not trivial anywhere around Boston and some neighborhoods are worse than others. After doing your own analysis on the code, you will want to consult a zoning attorney to determine the feasibility of what you're trying to do on a specific property. 

    Once you've determined you can add the additional unit, the cost will greatly depend on where in the building, basement, third floor, cutting a big unit in half side to side or back to front. You could be looking on the low side of $75k to add a unit to an existing walk up attic and just tap into an already upgraded electrical and plumbing system or hundreds of thousands to gut the whole place and add something  - it all depends.

    Good luck! I'll keep my eye out if I see any opportunities that may fit what you're trying to do. 

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