All Forum Posts by: Ryan K.

What is the minimum building size and/or lot size for a new apartment building?

I am analyzing a potential deal now.  It is an old farm house and various outbuildings on 1.4 acres, but it's riverfront views and in-town location is zoned for high-density multi-family residential.  Colorado and western investors will also perk up to this: it includes senior water rights.  Our town has a history of acquiring water rights in exchange for project approvals, so I see it as a significant bargaining chip.  The list price reflects an old house on the biggest piece of land in-town, not a future development parcel.

As a commercial appraiser, I do not have development experience.  But my job is essentially a daily study in how to make money on real estate, and this opportunity greatly intrigues me.  Please offer advice or point me toward resources to help with this decision, specifically, what is the minimum apartment size or land size for new construction apartments/townhomes?

Thanks Bob.  The cost to convert would be FF&E (king frame and mattress, 2 to 4 stacks of bunkbeds or another king, kitchen table, couches, TV, etc.); albeit, high-end to match the area and client expectations.  In high season (Dec-Mar), $1000/nt isn't out of the question.  It also includes more than enough parking spaces, which is huge (parking spaces sell for $70k at Beaver Creek, $250 up the road in Vail where there is less free parking).

Has anyone every gotten approval to convert a commercial condo into a residential condo? What was the process? Hire a lawyer and begin fighting through local condo board, PUD's HOA, county commissioners?

The property I'm looking at is in a ski resort area.  It's a very nice office with a full bath and a kitchenette.  All it needs is mattresses and a kitchen table and it could rent out very profitably as a short-term vacation rental.  As an office, with higher tax rates and more expensive mortgage terms, it does not make sense but it's lower expenses and much greater potential revenue as a residential rental.

I have found a screaming deal on a residential condo, but the problem is that the master dec states that it cannot be used as accommodations or residence.

It is in a resort area and the highest and best use is nightly vacation rentals (VRBO, Airbnb, etc.).  It would cash flow very well and, at this price, likely experience great appreciation.

Anybody have any experience to share with trying to change the allowed use on a commercial condo to residential?  Thanks

Thanks for the input Bill. It's Rural Res but designated for future high density development. Change in zoning is unlikely, it would have to be an approved PUD for the site.

If anyone has an apartment developer connection, I'd appreciate it.  It's a vision at this point, still in the research phase.  Just as with any project, lots of puzzle pieces need to come together.

Anybody have experience with an active apartment developer in CO?  I know Denver is HOT HOT HOT but this is a project 2 hours to the west in a smaller, but equally hot market.

Speculating on 1.4 acres with old farm homes on site but seeking developers opinion.

The gist is retire early by being super frugal.

http://www.mrmoneymustache.com/

Sorry about my post last night, tried typing on my phone.  Every state has different procedures.  If you call the local county, they should be able to explain how they value.  You can be vague, don't specifically name the property in question, that way you don't raise any flags.  If it is lower then it should be, a sale will likely trigger a revaluation, so plan expenses accordingly.

I'm an appraiser for a CO county assessor office. To further delinate, a super wealthy resort county w low population and high property values. I'm an expert at CO tax law. Ohio obviously has different 

I've been considering a deal in a small town an hour away.  The property is a 4-plex + small retail storefront and is historically registered.  It's the best location in a poorly located town and is relatively affordable - possibly the cheapest listed 4-plex in the whole state.

Finally had a chance for an exterior inspection this weekend.  Very sleepy town, stopped in the only open business - a small cafe.  We were the only ones there with the friendly barrista.  He told us that the largest employer in town is a coal mine and, although they recently struck a new vein, huge layoffs are coming and the future of coal mines is bleak.  Also, in this town of 1,000 people, 6 people die per year in the mine (what?!  this hasn't been verified but he insisted it's been the case the past few years).  RE investment in this tiny town is obviously not a wise bet right now.

I'm sure like many on this forum, I'm young, ambitious, relatively inexperienced but itching to dive into the game.  That's why we're here, trying to get more info to learn and grow, which is why I wanted to share this story.

It reminded me of a quote from my Dad, a successful entrepreneur and businessman with an enviable RE portfolio.  Years ago, I asked him what was the best deal he ever did.  He carefully considered before responding, "The best deal I ever did was the last one I passed on."

2 takeaways: First, a bad deal can be worse then 10 good deals.  Secondly, you can often learn more by chatting at the local cafe (or to neighbors, local business owners, etc.) then hours researching on the internet or talking with local realtors.