I'm going to be closing on my first property soon which is a duplex in South Mpls. One of the selling points for me was that it has major value add opportunities, the primary one being a 3rd floor with separate entry and has potential to be renovated into a separate unit.
I'm trying to figure out the best way to go about this, and from reading past posts on this topic it looked like converting from a duplex to a triplex was a PITA since you are going from residential to commercial building code. I'm wondering if anyone has insights on how the Mpls 2040 plan will affect this process. The past zoning for the property was OR2 (high density office residential district) while the new zoning is Interior 3, for what it's worth. Since I am owner-occupying I could shoot for making it an ADU and living in the upper unit, but if I could do the triplex conversion without additional headache I think it'd be worth it.
Another complicating factor is that this is an old property and the electrical is not up to code. Separate fuse boxes for all 3 units with a subpanel on the top floor that I'd be renovating but there is also some active knob and tube wiring visible in the basement. I was aware that the electrical was not up to code and would have to be redone at some point if I wanted to update the bottom units and eventually when I sell the property. And for a full remodel of the top unit the GC would need to pull permits and redo the electrical for the 3rd unit, so I would put in a breaker panel and add GFCI outlets for that unit. What I'm wondering is if they pull permits on the top unit does that mean I'll have to update the electrical for the other 2 units as well? I am hoping to wait on updating electrical in the other units until I am done with the 3rd unit renovations since that is the largest value add out there, and also that **** is expensive and I don't think I could afford a full electrical rewiring along with the other planned renovations. And there are current tenants living in the bottom unit, so I have to be respectful of them of course. Fortunately, since this was an off market deal it was priced to where it can still cash flow in its current state as a duplex, but its potential would be much higher with a 3rd unit, updated bathrooms/kitchens in the bottom units, etc.
Also I wanted to see what your guys thoughts are on using a GC for most or all of the renovations vs. acting as your own GC and hiring out to subcontractors. I understand that hiring a GC is probably going to mean higher overall project costs but if they are properly vetted and good at what they do will save lots of headaches and would finish the project much quicker. Right now I'm thinking the most cost effective strategy may be to have a GC submit the plan to get approved by the city, then hire out my own electrical, plumbing, HVAC, and take on the flooring, wall prep and painting myself. I'm not experienced in this so I'm a bit out over my skis but excited to get into it regardless.
Lastly, if you guys have any recommendations for the variety of work I'll need done it would be much appreciated. I've already got a decent list put together from my agent, mortgage lender, and other helpful people on BP and the facebook RE groups but I could always use some more. The main one I'd be looking for is a licensed electrical contractor who can upgrade service and rewire a house for a competitive price. Currently have Jeff from Skyline Electric, Rich at Watts Electric, Troy at Signature Electric, and Lanz Electrical as potential bids but haven't reached out to them yet, so if anyone of you can put in a review on their quality, timeliness and price that would be awesome.
Sorry for the long post and thank you for your time reading it!