All Forum Posts by: Christopher Aranguren

Quote from @Andrew Northcutt:

I'm a new investor to the Charlotte region. When I discovered there weren't many small multifamily properties in the area, I switched my research to SFR before I found out about the zoning and then the UDO going into effect in June.

I was hoping someone closer to the market would be able to share what they are hearing about timeline with regard to higher availability of multifamily properties in the area? Is it right that development cannot occur until the ordinance goes into effect? 

Hey Andrew--The following is to my understanding is the timeline:
1. No building can take place before the UDO goes into effect,
2. However, you can start requesting permits and if the UDO becomes effective after submission but before the permitting decision is finalized, you (/ the Applicant) can choose to use either UDO or pre-UDO regulations. See the following https://charlotteudo.org/wp-co...

It seems correct that the small multi-family market is quite limited (on-market at least). I believe the UDO will provide some good opportunities for this to expand over time. However, I do not think there will be any radical shift in the offerings that become available in the near term from this. Theoretically, I could see this development maybe even making certain small MFH options (like existing duplexes and triplexes in certain areas) less desirable since someone can just pop a duplex essentially anywhere.

Thanks for this response Patrick! Great advice all around and definitely will ask these questions. The tip on having architectural plans is a nice one too, I will consider that for before I engage a builder on my next project.

WRT the feeling part of it: I do feel like I could get a gut shot feeling of what feels wrong (regardless of being an attorney or not, I am not a RE attorney though!), I generally am just considering whether there are particular things that people have found as good markers that a builder should be trusted, or other things people have found as bad markers that a builder cannot be trusted. Same thing on the contractor side.

Will definitely connect and reach out if I ever end up Raleigh-side! Not there right now but who knows what the future holds :)

Hey yall--Due to some zoning changes in my area, I have the opportunity to build one (or even more) new units on certain property that seems perfect for this sort of thing. That said, there's an existing house that is quite large and simply does not have the same "look" as the unit (or units) that I could build most economically. For example, the units I'd like to build are a bit shorter and not the same shape. I have never built before and I can't find any zoning or ordinance things that would prevent this, but it feels like if I went and planned to just add on a unit or two that are attached (or even just next to) the existing house but that look quite different, this is the something that the city would have a problem with.

I am not really sure how all I would figure out if these fears are legitimate. Anyone have some insight on if they have thoughts here, resources, or a way of reaching a resolution? Info from any city is appreciated, bonus if you have Charlotte NC specific experience here. Also, I'd like to replicate this some other properties I am looking to obtain, so if that changes your answer on how you would handle when in the "buying" stage, would love to hear any insight on that as well! 

Coming up in 2023, I’m looking to take on some new projects for the first time! What’s interesting is that these projects include pretty different end goals: one is a “higher value” custom buildout of a new structure, one is a new build addition to an upper-middle class suburban property, and one is a budget conversion (and possible expansion) of an existing garage structure.

I’ve never dealt with builders before and am not sure if there are particular things I should ask and look out for as red flags or green flags about which builder is right for me, and right for each project. Are the questions you’d ask the same as any other contractor? Is there anything you’d ask a builder specifically that you wouldn’t bother with for other renovation tasks? Would you trust any contractor for a conversion + expansion or just a builder? Id like to come up with a clearer idea and formulate a bit of a questionnaire/checklist of sorts on what to discuss when “interviewing” potential builders for each of these projects. Any advice on what y’all would recommend looking for or looked for if you have experience here to help guide towards the best fit is much appreciated!

FYI: all projects are in Charlotte, North Carolina and nearby markets in NC. Any insight is appreciated, and any connects you may have (especially for more budget-friendly builders), also is very helpful. Happy to connect with any others in the area or elsewhere too!

Thanks BP family and wishing everyone luck in their continued journeys REI and otherwise! 🙌🏼

I feel a lot of people, newbies especially, really undervalue the effects of change and the opportunities it brings. This is particularly true in answering the age old questions of "how do I break into this real estate thing" or even "how do I scale from where I'm currently at." Changes are always very cool because it provides opportunities to find what has become undervalued because of the change.

In my opinion: The UDO changes include some of the best opportunities for both new and experienced investors to leverage that I have seen in the few years I've been here. I hope that other players (particularly the small ball and individual players in the space, which includes me too!) get to yield something positive off of leveraging these changes, and ideally simultaneously better the affordability and other housing crisis related issues that have definitely become straining in the city as of late. For example, whereas an even moderate multi-family to large multi-family player has their own benefits with respect to building out larger planned projects, smaller players now have the time to create reduced competition based on the questions of: do the changes make certain lots or existing properties that you looked at/are looking at have a greater value proposition that you can perform on? Is a duplex (or bigger) build out on a piece of existing land or house you own now an option for a reasonable return? Does a change in existing renovation plans now make sense that didn't make sense before? Is there an underappreciated new HBU in certain areas over others that can be captured and may not be as competitive as "just investing in [some criteria]" generally and fighting with everyone else just operating without considering through such a lens? I guess put simply, change means you could find a new niche to try and operate in that may be undervalued without due consideration. Probably these effects would fade out over time, but that's still a worthwhile consideration if/while the gettin's good.

Also, quick comment on the actual effects the UDO itself may have broader CLT market: I really hope people take advantage of it and that the city can encourage positive density changes to address housing affordability while managing to actually keep up with suitable infrastructure that supports the changes in density. Charlotte has struggled to maintain on the infrastructure front in my estimation. I also hope it's embraced without significant successful NIMBY pushback. Guess time will tell

http://biggerpockets.com/events always is the place to find those sweet sweet BP-organized meetups. FB can probably be used as well to find some but no specific resource.

I’d be down to meetup, and even organizing something small is something I’m always happy to do. But organizing something consistent and that could draw any number of people is not something I’m interested in doing at this time and may prove difficult in the current climate.

Hey @Shareef Hood—there are some meetups still going in the surrounding areas, but to my knowledge the few CLT specific meetups that went on before COVID have subsided likely due to COVID. Keep tabs on the BP events page and you should see a couple pop up.

I think there is a need for local CLT meetups now. Once COVID craziness calms a little more than it already has, I’ll be reaching out to see what happened to the local meetups that were taking place beforehand. I also would be interested in putting a regularly scheduled one together if the need persists once we reach that point.

Hey Natalie! I'm a newbie in Charlotte as well. Always looking to meet people in the space and mastermind, discuss, partner, or otherwise just stay motivated with others in the area. Happy to connect! I've sent a request.

Same goes for others in this thread :)

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Chris

Hi Jerry--Not a zoning expert, so do not take the below as an authority. For an authoritative answer, reach out to the Mecklenburg Zoning Department. In my view that's literally the only way you can be guaranteed in your action really.

With that disclaimer out of the way--I agree with you that tri/quad appears not doable. There are some things missing in your description for duplex consideration though, more so than just the lot size. To my knowledge, R-3 is not zoned for multi-family as a right, which is consistent with what appears in the text. Per the link you provided, check out section 9.202. To my understanding, this outlines the various permissible uses by right (e.g., always) for R-3 (amongst other single family zones). The only one that has a possibility of allowing a duplex by right is R-8, so we look elsewhere. 

The other permissible uses are in the next section--9.203 and more specifically sub-sections (5.1) and (6). Per these sub-sections, the duplex would need to be [a] on a corner lot, [b] if more than one entrance, with entrances to each unit facing different streets, and [c] minimum setback applies to each. Assuming you meet those requirements, you at least may be permitted according to the zoning laws. While it seems that you could read this as "hey I meet these requirements! Off we go!" it's far from immediately apparent to me that you can go and just do it, especially since the ordinance says "may" and not something more concrete like "shall" or something as a right. Without further confirmation from the Zoning Dept., I would not be comfortable with that, especially since converting would likely be relatively expensive. I would be especially uncomfortable if you plan to replicate that, since you'd be placing your road to wealth on an assumption.

Now mind you, none of this even considers the other requirements to "convert this into a duplex." The size restrictions you point out are one such restriction, but not the only one. There's also things like fire safety codes. It's not so simple as add a wall and some locks. So, your plan has to account for this. 

For the actual maths you set forth, seems like size-wise the property is fine. But I'd worry a lot more about everything else outlined above.

Hope this is somewhat instructive. Obviously, someone who knows more is free to correct me, i'd love to learn where holes are poked in my analysis.

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Chris

Hey @Nolan Brendese! I am also in CLT and recently just purchased my first property here. By no means am I a vet in the space, but I would say that I was also on an information overload before I decided to just pull the trigger on a property.

For me and in hindsight, taking action on anything I saw as reasonable I think was the best learning I could ever have done. I certainly have learned more from the experience than from my educational attempts beforehand.

With that preface in mind, to address the question specifically, a few options:

1. What I did was live in the property I purchased for a year with the intention to rent it out afterwards. I was a renter beforehand, so this made the buying process also a learning process for me. But in terms of up front cost (barrier to entry), it greatly decreases the amount you can put down to just a few percent (I put 5%) rather than a full 20%. You can the allocate the rest of your capital as appropriate for in-house projects. I would recommend this if analysis paralysis is getting in your way and living with ongoing projects is something you (and any SO) are okay with. It’s especially good if you’re interested in doing some things yourself or want to learn how to do them, since you can take things as slow as you need. Of course this also doesn’t restrict you from pulling the trigger on future deals while you live in it.

2. You could always look for a partner. It doesn’t necessarily have to be someone more seasoned than you to show you the ropes, as long as both parties understand the risks this can de-risk your first purchase without diminishing your learning experience by you taking it on as the point person. I’m sure you can find someone through BP or local meetups, and I know someone who did this elsewhere.

3. I like the duplex option you can live in if that fits your lifestyle. I would have done this, but it didn’t work for my SO too. I’d also note that I did not have much luck finding CLT duplexes that I would be comfortable in, but I did not look too much into this for the reasons stated. If you can find any multi family units that you’d be happy to live in, I’d do that (it sort of meets option 1 too)

I would strongly recommend buying something (read: really _anything_) as a newbie that makes you happy rather than looking for the perfect deal. I truly believe the experience itself would be worth it regardless of whether the deal is meh, good, or relatively even. I've sent you a connection request, happy to discuss more as we proceed on our REI journeys. Hope you find a deal that makes you happy!

- Chris