All Forum Posts by: Jared W Smith

A full gut rehab for $45k? What area is this? That's extremely low. Have architect and engineering fees been factored in? What about bringing all electrical, plumbing and insulation/energy up to code? Municipality fees and inspections?  

Wish I had known about this event. Please alert me to the next one. 

 Depends on the site and the utilities available. 

On average an architect will never load their fees and need them all ahead of designing. Not even 50/50.. Any good architect that is. (Unless it's Frank Gehry.. and even then I wouldn't pay it.) 

The cost are usually broken down into the phases: Schematic Design (SD), Design Development (DD), Construction Documents (CD), Bidding and Negotiations, Permit Filing/Municipality Approvals and Construction Administration (CA). It's up to you on what you need. Most architects offer CA where they stay on the project during construction and oversee the contractor/construction on your behalf to ensure the project is built to the approved documents.  

If you are not familiar with construction I would definitely advise retaining an architect beyond design and maybe also a owner's rep/construction manager. They would be your eyes and ears on all things construction. This especially if it is multiple projects/lots/properties or a large one. @Arturo Borges

Same process.. just more complex/complicated for large developments. 

Hugely depends on the municipality, their work load, and the project's complexity. Could be 2-3 weeks or 3 months. This is a question for your City's/Local building department. @Arturo Borges

 Hello Andrew,

It seems that you are dealing with several issues. 

I am an architect here in NY and have much of my experience in NYC and Westchester County. Where is the property located, what village/town? Your title company will provide you with much of the documents you are seeking however that's once you are further along in the buying process. (Unless you have connection with one that can get you info prior to closing.) You want to have an idea about the home's legal use in order to figure if it's a deal. Therefore, firstly, I'd caution you to find out what the property is zoned for. The seller's apprehension may be because he is housing more un-realated people than allowed or is treating the property as a multi-family when it is not.  

There is no grandfathered clauses when it comes to safety, egress and fire codes. These items are a minimum requirement. Plus you wouldn't want to own a property which is a fire hazard. Your liability would be insanely high, especially if something were to happen. The tax issue might be because the property is being assessed for a smaller home (SFH?) but actually a 2-family? Not sure why this is your problem, especially if you are seeking to purchase it. You want to know the tax implications.  

You need to base purchasing the property based on it's legal use, not how the current owner is using it. 

Let me know if you need help. My clients hire me to do this type of research ahead of prospective renovations & additions. 

Yes.. Thanks! @Aaron K.

So very true @Scott Choppin

Hello all- I am still a newbie in the real estate investing scene. I am still putting my team together and understanding the strategies available to dive in proper in the next year. 

An opportunity came across my desk which I welcomed as maybe a sign to jump in sooner rather than later (..yes.. analysis paralysis). A developer (friend of a good friend), propositioned me on a new property he's looking to acquire. It's two lots with a single family home on one. I'm not totally sure what my role would be however he wants me to come with a percentage for down payment to purchase and then share in the profits. Before I could even understand the numbers, I looked at the prospective property... oh boy. 

I may not be excellent yet on spotting investing deals based on numbers however I am a licensed architect and I know site planning, zoning and building codes very very well. Especially in my hometown. This guy has made a whole proposal and solicited investors while it seems that he has not done his research and due diligence. He shows several exit strategies with profit expectations and honestly none will actually work as he has planned. For one-  the lots are very irregular therefore cannot easily be subdivided. Also this limits the ability to build on it due to the minimum zoning ordinance requirements. I feel bad as I have to be the bearer of bad news.  

If I could offer any advice, if you do not know how to properly evaluate a property for a new development, then hire someone to or get a knowledgeable person on your team who can. He has wasted months and months with this and ultimately I will advise him not to purchase it.    

I second @Brie Schmidt. You need to see if this is legal. 

Because it is a detached garage, known as an accessory building, adding a dwelling within would make the lot have two buildings/structures on it. Unless it's two lots, most municipalities will not allow this (OR it will be difficult to gain approval based on simply wanting to make more money renting space out. You would have to file for a variance). This is fairly simple for a local architect to look up the specifics within the zoning resolution. @Robert Blake