All Forum Posts by: Eric Teran

@Kimberly L. knowledge through experience is the best way to learn. I know you won't make the same mistakes again. I've also learned if you pay a little more upfront for detailed plans and estimates you will save a lot during construction. Better yet, you will stay within your budget. I have another client who is a developer who is also deaf. We are always in communication to see which properties make sense for him to invest in. I can put you two in contact if you would like. 

There is a lot that goes into separating a SFH into two-dwelling units. Construction costs can range from $100k to $400k. It depends on what you want to do. Some clients only separate the basement with a simple remodel. Other projects involve adding a 3rd-story, making each unit 2 stories, adding more SF at the back, and so on. At that point, it is basically all new. The location will tell you how much you can sell each condo for and at what size. You have to work backward. Once you have that selling price we can discuss how to convert the SFH to two-dwelling units. I suggest working with a realtor that understands these price points.

The big difference in costs are in the following areas; separate utilities for mechanical, electrical, and plumbing, most likely the need to upsize the water meter and meter lateral (Will need a DC Water and DDOT permit), fireproofing between units, and a sprinkler system in one or both units. In some RF-1 zones they may be historic and you will need to have HPRB (Historic Preservation Review Board) or BZA (Board of Zoning Adjustments) review the plans. 

@Kimberly L. for a cellar to be considered a cellar the BHMP (building height measuring point) has to be less than 5'-0" from the first-floor elevation. If it is more then it is a basement and considered a story. The BHMP is the existing grade height at the middle of the front facade of the building. For example, the BHMP is shown as 0.0 on an elevation drawing. Then the first floor can only be 4'-11" higher.

In regards to adding a story, it depends on what zone you are located in. DC zoning for residential use is usually dictated by height, story limit, and lot occupancy. Other zones are usually height, lot occupancy, F.A.R., and other requirements. If you are in the RF-1 zone the height limit is 35'-0" from the existing grade and/or 3 stories. 

Making the cellar deeper only works if the BHMP is lower than 5'-0". Most rowhomes are. 

@Joseph Ayoub I have worked as an architect on four projects that were considered blighted. Actually, 3 and one was about to become classified as blighted if they didn’t act to improve their property. I even had my leg fall through a floor and another time a rug was hiding a 3’ diameter hole on the third floor. So there is a lot of work involved. A lot! The other project the existing structure was so damaged we had to raze the home which lead to a lot more restrictions being a new build.

It isn’t hard but get it in your mind that a blighted house will basically be a new house in regards to your budget. Everything will most likely be replaced. Even the joist and every pipe and wire and so on. Only the party walls and exterior walls will remain in place. Actually, you only need to keep 40% of the exterior walls above grade to be considered existing and you can get creative. You do have to be careful about DDOT and DC Water issues that can drive up the cost.

There are also a lot of individual owners on those lists that you can reach out to. Once a house in DC is classified as blighted the property tax is ridiculous. One client bought a vacant house that once he bought it the DC tax office changed it to blighted which raised the property tax from $6k to close to $30k. Luckily he was able to prove that he was going get a permit for a new home so they waived the fee. Don’t go into buying a blighted property without building ASAP.

@Abigail J Steinert there is an e-myth book for real estate investors. Actually there are numerous e-myth books for different types of businesses and professions. Here is a link in Amazon, https://www.amazon.com/Myth-Real-Estate-Investor/dp/0983554269.

The thinking is to have systems for all your decisions. For example, always have the same type of flooring for a specific price point so you don’t waste your time looking for flooring for every project. This also allows you do know the budget much quicker. In the first few projects you will have to figure out what works and eventually the decision making process goes a lot quicker and smoother. Also, who do you hire and what do they do? Is it worth your time to make small decisions, build a cabinet, or find investors? You can’t do it all so you have to build a team. Find out what you are strong at and fill in the holes with other people.

The goal of e-myth is that you are not doing everything. You don’t want to work 80 hours a week. You want to make the money and delegate to others.

I hope that helps.

@Jessica Miller I currently have a couple projects in Baltimore. I am happy to help after April 12th if you are still looking for an architect.

Does the basement have 7’ ceiling height or do you have to drop the slab and possibly do underpinning?

@Leo Watts the $5k to $15k was just electrical. Cellar conversions run around $100k to $175k. This depends on many many many factors but this is what I've seen in the last couple of years. It is only going to get more expensive as construction costs have gone through the roof. 

The height limit is rarely an issue. The three stories are what can get most developers if they don't realize the cellar is a basement. The cellar distinction is incredibly important and is what everyone should want. 

@Jeremy D. go to this link that gives you the use codes for DC. Residential-Conversion-Less is defined as, "Structure with more than 1 single-family unit, but less than 5; usually self-contained, under 1 roof; few accessory uses; 1 unit may be
owner-occupied; original primary use not multi-family." This means that there can be two units but not condos. This happens sometimes when an owner separates the unit legally but doesn't make it into a condo. Once it is a condo they can sell the unit separately from the other one. If they do not do the condo conversion they can't sell the condos separately. At least that is my understanding of why developers do a condo conversion. 

@Joaquin Camarasa getting a permit for creating a duplex is just like any other permit but it may need more work. Like DC Water and DDOT. DC Water may be needed because you are now adding more fixtures (including fire sprinklers) and that will require at least a 1" water meter and service line. However, the review process with DCRA is the same process. It will take around two to four months for plans to be approved once submitted. 

For construction, the inspection is the same. What takes a while is the condo conversion which is around four to six months. Lawyers normally handle this. 

@Jeremy D. on the link I sent for property quest under "Ownership and Taxes" there is a subject called, "Use" and to the right, it will say something like, "residential row single-family" which means it is one house (one meter). If there are apartments, "Residential-Apartment" and if there are condos, "condos on this lot" and then it will list all the owners. Apartment and Condos will most likely have meters for each unit. Sometimes for older apartments, they are hidden in the cellar.

Type in these three addresses for examples which are all a block from each other: 647 16th sT NE (RF-1 single-family), 1537 GAles ST NE (RA-2 apartment), and 619 16th ST NE (RF-1 Condo) 

I do have one client who bought a house back in the '90s that had separate meters. However, this was never recorded and a certificate of occupancy never obtained. Now he wants to make it a legal unit and we have to convince DC that it has always been a rental so that it is grandfathered. If we can't convince them then we have to take all the measures of separating a unit. So sometimes there are two meters but it doesn't mean it is recognized legally. 

@Joaquin Camarasa most DC RF-1 homes are two stories over a cellar (not a basement, will explain later) and most owners will make the cellar a separate unit. Bigger projects include adding a 3rd floor to make the 2nd/3rd floor a unit and the cellar/1st floor another unit. When you separate the unit there is a lot of work that goes into moving all the wiring from one panel to the other. The panels themselves don't cost much. It is all the labor and wiring. If someone has an illegal unit they most likely do not want to spend the extra money to do all this work. I have some clients who did this many years ago and they now want to make it legal. I have other clients who have bought homes knowing there was an illegal rental unit in which they then want to make it legal to obtain a certificate of occupancy. Adding a separate meter can add $5k to $15k depending on the existing conditions. 

In regards to a cellar and basement, the reason for the difference is that DC counts a basement as a story but not a cellar. If it is in the RF-1 zone a house can only be 3 stories so if the basement counts as a story the owner cannot add another floor. If it is a cellar a 3rd floor can be added. It is considered a cellar if the 1st-floor level is less than 5'-0" from the existing grade at the front door. 

@Jeremy D. You can go to https://propertyquest.dc.gov and type in any address. If it is in a RF-1 zone it will state single family or two dwelling unit on the left hand side. If it is a two dwelling unit it will be separate meters because it can’t legally be two units without separate meters. Of course there are illegal rented units and those most likely won’t have a separate meter as it is a big costs to do.

The utility company will most likely be a dead end. You can also check google maps street view and see if you can spot both meters.

Good luck.