I have ran into two properties today from a direct mail campaign in the Phoenixville and Boyertown areas.
The first one is in Phoenixville. It is a Two unit with a 3br 1.5ba main house that is 1000sq. ft. that is partially finished with the full bath on the main floor and half upstairs. Another thing is that the bedrooms are all small. I would actually classify it a 2br with a small office. The second unit is a 1br that is roughly 650sq ft. and is above a 2car garage.
I have went to look at the property today and decided to not give an offer because my numbers were based on the info I have gathered off zillow, redfin, and other sites that states nothing of the partial rehab to the main house, and the full garage/apartment and driveway addition that has been done. I am able to find comps for the main house, but don't know what to add on for the additional garage that has been built on the lot. Any thoughts on what a new construction of a 3 car garage with 1br above would cost so I can figure out what to add on to my offer.
The second property in Boyertown needs a nice bit of work, but the main problem is that the septic system is failing. I feel that should take a substantial amount off of the offering price due to the septic systems condition.
This may be a question due to Colorado's strict building codes, but was the addition permitted? If not, it makes the property less valuable due to the potential code violations and additional expenses required to make it legal. If it is legal, it only adds value if you can rent it out. I would only offer what the additional income provides in terms of value to an investor. These are just my thoughts though. Cheers!
I didn't do any research but he did say it is permitted, and there is a tenant currently in the addition. He said he was trying to sell the properties separately, but zoning stated that since they are so close that they have to remain on the same parcel.
Best of luck, I hope it works out for you! I Imagine you already know this, unless the 2 units have separate legal descriptions, they can't be sold separately. Deed transfers by Legal Description rather than address.
Yes. He had to figure that out the hard way.
We invest in Phoenixville and think you should call the codes dept at the borough to see if the apartment above the garage has ever really been granted a legal rental permit. They run a pretty tight ship and are careful with above garage rentals. We've heard about a case where someone tried to sell a Phoenixville house with a non-legal garage apartment where the tenants created noise, had parties, and bothered the neighbors. This dispute went all the way to a state court. So, in essence the 2nd unit had no value to an investor b/c they couldn't rent the space.
Is this house near the corner of Dayton and St Mary's? We buy and hold and don't wholesale, but think a good method might be to ask your flippers or buy and hold buyers what they're looking for and where, then find them that house. 1000 sqft is very small and most families have alot of stuff and wouldn't even look at a place that small, limiting the tenant pool who would demand that space. Look up the assessed value of both parcels on Chesco's property assessment site and by comparing the relative values, estimate the additional MAO that you would offer for the house with garage.
@Robert Haworth It actually is at the corner of dayton and St. Mary. So you to are familiar with the property. Let me guess. Code and zoning problems.
No, don't know specifics on the house or situation of the owner, but have seen the house and have seen the tenants or owners, a guy and girl.
@Robert Haworth I have had a walkthrough today and agree the main house is quite small, with bedrooms that aren't that big either. Also with a main bath on the first floor and half on the second, it doesn't make that much sense. I figure if I can get it under contract at a good price that maybe someone would be interested.
We will see tomorrow. Im going to shoot him a number and see how it goes. If you have any interest I can let you know what happens with it.
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