Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 300 posts · 113 votes
1w
Quote from @Jonny Lauderdale:
Hey BP, any tips and tricks on adding additions and square footage to distressed properties? Any challenges you face and how to avoid them?
@Jonny Lauderdale, one thing I’ve learned from working with investors is that adding square footage can create a lot of value, but only if the new space is actually legal and properly documented. I’ve seen owners spend money finishing basements, converting garages, or adding rooms, then run into problems later because permits were not pulled, the work did not meet code, or the county records never matched what was built.
Before I would spend money on an addition, I would check zoning, setbacks, permits, utility capacity, and whether the finished space will actually be recognized as legal living area when the property is appraised or sold. I would also make sure the contractor scope is very clear, especially for change orders and anything that could affect the budget. The goal is not just to create more square footage. It is to create square footage that actually adds real value and does not become a problem at resale.
I like that you are thinking about how to create value on distressed properties, and I’d be glad to stay connected and see what kinds of projects you end up working on.
The biggest challenge I've hit is permit delays and scope creep—what starts as a simple addition suddenly needs foundation work or electrical upgrades that weren't obvious until you open the walls. My advice: get a detailed structural engineer's report upfront, not after you've already committed to the project. Also, talk to your local building department early about their specific add-on requirements; every city has different setback rules and square footage limits that can kill a deal. Have you already identified the property, or are you still in the planning phase?