All Forum Posts by: Gustavo Munoz Castro

@Steve B. so true. I just got the info for another land planner, I'll reach out today. Thanks!

Hey folks. I own a rental property in Seattle (unincorporated King County technically) and it has a 10,454 sqft lot, zoned R18 (18 units per acre). There is a home on there currently with a huge back yard surrounded by larger multifamily properties. The previous owner started the subdivision process but went under after the crash. With rental properties as scarce as they are in King County, I'd like to see if its feasible to build 3 townhome new rentals in the backyard. I'm a total noob at new construction, so I asked a friend that has done it and she pointed me to company called ASPI surveyors and land planners. I'll be consulting with them next week on overall feasibility of the project.

I'm gonna need a construction loan to get this off the ground. I'm hoping all construction cost for 3 units (townhomes, 2BR/2BA, hopefully 1200-1500 sqft and 1 car garage/carport) is <$400K since gross rents are in the $5000-$5500 range. I'm able to qualify for $400k-$500K for a residential loan so I'm assuming I can swing it for construction.

Few questions for the experts:

1) What are typical terms for construction loans? Is 20% down gonna cut it? I could do more if needed. Are they typically 1 year balloon payment? Once construction is done? Do most folks just do hard money?

2) Can I roll all construction costs into the loan? Stuff like drainage, soil stuff, etc?

3) What is a quick and dirty way to estimate new home construction costs to help make sure I'm doing alright in the cost department?

4) As I'm waiting to get my feasibility and land plan done, what else should I be doing?

5) What is the typical time frame to get this done? I was hoping to be done <1 year, am I crazy?

@Jay Hinrichs Thanks!

@Jay Hinrichs Got it. If this were Portlandia, what would be a ballpark estimate on how long the process would take? Do you have any rule of thumb on costs for new construction?

Thanks @Jay Hinrichs, looks like im on the right track then with ASPI. Anyone you could recommend for land planning? 

@Johnny Vong, sorry didn't tag you correctly above.

thanks for the reply @Johnny. Do you have any architects you can recommend? My friend says that for small multifamily the land planners can handle it, does that sound legit?

Anyone you'd recommend for a construction loan?

I'll contact the county planning office to get some pointers. The land planners are supposed to cover that but it shouldn't hurt.

Do you know if the lot needs to be subdivided if I'm planning on holding the properties? Since it's zoned multifamily maybe not?

thanks for the reply @Eric, any architect recommendations for the Seattle area?

Hey folks. I own a rental property in Seattle (unincorporated King County technically) and it has a 10,454 sqft lot, zoned R18. There is a home on there currently with a huge back yard surrounded by larger multifamily properties. The previous owner started the subdivision process but went under after the crash. With rental properties as scarce as they are in King County, I'd like to see if its feasible to build some new rentals in the backyard. I'm a total noob at new construction, so I asked a friend that has done it and she pointed me to ASPI surveyors and land planners. I'd also need a construction loan to get this off the ground. Does one actually need an architect to make this happen? My friend said since its small multifamily then no. Has anyone gone through this process? I'd love some tips and recommendations for contractors and lenders. Also, am I doing this in the right order? Land planner, then bank and then contractor? Thanks in advance.

Wanna jump in here and plug Keller Williams. They're not #1 in the Puget Sound yet but definitely growing and getting bigger and bigger. KW has the top training for new hires IMHO, just the Ignite and BOLD classes are worth the price of admission. If you're looking into any particular office PM me, I know most of them. Shock: some are much better run than others.