All Forum Posts by: Eric Teran

@Michael B. it depends how big the gut job is and what the finishes are to be under $150k. Is it a 1,500 SF rowhouse or 3,000 SF single-family home? I know two contractors that work in Montgomery and Howard counties. However, I don't think they will fall within that price point as most of their work is in DC. If you are interested send me a PM and I can give you their contact information. 

@Jon K. A lot of residential zones allow church buildings but are still zoned for SFH. Hopefully, this is the case. To change a lot to another zone is not that easy. Even if it is going back to what it used to be.

If it has to be rezoned ask the seller that the closing is determined on the city approving the zoning. Estimate how long that process will take and add it to the closing documents. It will probably be a few months. This will give you an out of the contract if the rezoning is not approved.

Good luck.

@Daijamonet Cook the easiest thing to do is make sure the building is properly sealed. This is done by installing the correct insulation and at least double pane windows. Insulation is key to have an efficient building. Then the proper mechanical unit can be installed, energy efficient lighting, and EPA watersense plumbing fixture. You can then look at using sustainable and local materials.

@Kaustubh Johri I agree with @Samuel Pavlovcik and the only thing I would add is to find out why it is not closed. It maybe that it only needs a final inspection or perhaps an outlet was not GFI and needs to be updated. There are a million reason so find out what is preventing it from being closed.

If it is something simple just take care of it as it may not be worth the hassle to bring in the previous owner. If there are numerous items that can be life threatening or costly; for example, the rough in and insulation was not inspected before close in then I would get a hold of the previous owner and tell them they sold a house that was not allowed to be occupied.

Good luck.

@Alexander Felice I am happy to speak to you about my journey viewed through an Architects mind. My wife and I are still rookies as we only have three rentals in Ecuador (too far to tour but one is a jungle house in the Amazon rainforest) and the house we live in where we house hack by renting the basement in Airbnb. The cool thing about our house is that we built it on a vacant lot in 2017 and used Superior Walls and Modular construction to finish construction in four months while working a full time job and the wife being pregnant with our second child. We were the Owner, Architect, and Contractor. Those were four crazy months!

Additionally, around half my clients are developers and it is interesting to see all the different mindsets and what each one is after. There is definitely a wide range of paths to becoming successful in real estate. I’m happy to speak to you to see if it’s a good match.

@Alvin Uy talk to your CPA. I was approved for Both the PPP and EIDL for my Architecture firm. The PPP was approved first in April and the EIDL about a month afterwards. I spoke to my CPA and he informed me not to take the EIDL unless absolutely necessary. I declined the EIDL. I forgot all his reasons but it had something due to with affecting the full forgiveness of the PPP. Of course this was back in May and things have changed.

@Nic Werner noise is measure by STC which stands for sound transmission class. For floor separation between units you want to be around 50 STC. There are various ways to achieve this.

Putting another layer of drywall or sound insulation is not enough. You want to separate the vibration. In addition to the extra layer of drywall and sound insulation there are vibration clips that are installed under the joists and then a metal furring channel is installed running the length of the ceiling. Then the drywall is attached to the furring channel. This separates all the vibration and noise will be minimal.

I did this for my basement (we rent on Airbnb) in the DC area and have done it for numerous clients. Around here a 1,000 SF ceiling cost around $4k to $8k (drywall, clips, insulation, paint, labor). I did mine around $4k because I acted as the GC, bought the materials, and hired the subs. It was definitely worth it.

One more solution is if you are replacing your flooring on the first floor there are rubber Matta that you can place under your flooring.

Whatever you do try to get the STC rating above 50.

@Luka Friganovic I think your calculations are off by about 1.4 months.

@Tucker Marshall I'll jump into the conversation as a fellow Architect also playing the Architect + Developer game. There are a few threads with fellow architects who are entering the REI field. I don't know why more architects don't do it as we have the knowledge to find properties that others don't through zoning and building codes.

I think hands on experience and not being afraid of a calculated risk is the best form of education. take that $50k and invest it somewhere. I have three rentals in Quito, Ecuador and rent our basement in Alexandria, VA and it has been a great learning experience.

I also started my own architecture firm in 2018 and around half my clients are REI investors. I have found that understanding how an REI investor thinks has allowed me to grow my firm rapidly and additionally I have numerous contacts in the REI world. A few which I hope to partner with on bigger deals this coming year.

In my opinion there is nothing more valuable than real world experience.

Good luck.

@Gerrett Houston an interior designer or other consultants may be covered. Take a look at this link, https://www.fdic.gov/consumers/community/mortgagelending/guide/part-1-docs/fannie-homestyle-renovation-mortgage.pdf. On the third page it has Architects, engineers and other consultants covered. So an interior designer may fall within that category. Just confirm it when you apply. Good luck.