All Forum Posts by: Carini Rochester

Building codes for commercial spaces tend to be very different than residential. Documentation, plans, proof that the plans comply with code, will require a licensed professional (architect or professional engineer.) Handicapped accessibility, exiting, fire protection (metal studs, other non-combustible materials) fire sprinklers, insulation, lighting, HVAC, all will be somewhat different for commercial spaces. Site planning might be important. If you rent to a business that is mostly offices or warehouse, you might need to park 6 cars on the street (probably acceptable to the town.) If its a bar, that might need 40 parking places. Does the town have a process to evaluate different uses and give approval?

Your final assumption in point 1, that the rental property will have a lower down payment is not correct, at least as a percentage of purchase price. An owner occupied house, whether single family or duplex, tri or quad, would probably be at a 5% or 3.5% down payment. Whereas a rental property that is not owner occupied would require a 20% or 25% down payment.

Your observation, "-Lower payment means less money locked up in the mortgage, which can in turn can be used for other things (like more investments or renovations)" is correct and is one reason for keeping the down payment as low as possible. Another reason is that one calculation you will want to do in your planning is to maximize your return on investment. Since 'investment' goes in the denominator, a smaller investment is likely to give you a bigger return on investment.

Call up a phone number on the document they sent you and ask for an extension giving the arguments you stated in your post. Hire a demolition contractor to write a statement that he can't do the work until there is warmer weather, he's not scheduling any work like that until spring. Find out how long it will take to verify that there is no asbestos in the building. That may take a month or two. You may need to get permits, from the utility providers for capping/abandoning the sewer, water, natural gas, electricity, which will take time. Twenty-one days does not seem like a reasonable time-frame.

Locking in the buyer I'm sure is the main motivation. No one has the reliable crystal ball. If that's your prediction (prices will go up) then tell this interested party to check back with you as you complete the construction.

Why wouldn't your construction financing continue to finance the build? You would accept the buyer's purchase offer, your attorney would hold their earnest money, and there would be a closing after you get the certificate of occupancy. 

@Donato Callahan Nice maps. BrightInvestor. Are you finding it worth the $80-100/ month price?

@Bruce Woodruff Agreed! Most additions of that size never get built. They get dreamt about, planned, priced, then never built. It's $300/SF and up in my area. This OP should be looking for a house that meets his needs, not a house that will need a 1200 SF addition built on it.

If you follow all the rules a building permit will not be denied arbitrarily. Also, municipalities offer a way to ask for permission to vary from a zoning ordinance, called a variance. Variances are granted pretty routinely in my area, but the burden of proof falls on the property owner to justify why granting the variance won't negatively impact the neighbors/community. (Some towns also have an Architectural Review Board that reviews the plans to help insure that no one builds some monstrosity that detracts from the visual beauty of the neighborhood, or something.)

There are two sets of rules. 1 is the local zoning ordinance which will control things like yard setbacks (stay 5 feet from your side lot line, for example,) maximum lot coverage. Every town, every city writes their own zoning ordinances, so you have to research the applicable town. 2 is the building code. Almost every state uses some version of the Uniform Building Code/Residential Code. The code is interpreted and enforced, usually by a local building inspector. Interpretations and enforcement will vary from town to town. A licensed professional (architect or professional engineer) will usually be needed to prepare the plans for a project of this size.

A grammatical English sentence that states how many vehicles and where they can be parked. Period.