All Forum Posts by: John Mason Wallace

Mason from four years ago was naiive. He didn't realize that the zoning code was 50+ years out of date and the US was on the way to another real estate crisis. It's probably not as big as 2008 but good lord, we didn't need another one.

I've since partnered up with much more experienced developers with the lot I acquired in the area. To make the project 'work', you gotta scale up. Why waste your time with the zoning board and city council if you just want to build say a triplex or four unit project?

You guys need to understand how much of a disaster the zoning code is. It's mandating the construction of mcmansions in my neighborhood. It's the only thing allowed by right on most of the land. So igits can build a 700,000$ single family home and walk away. Anything else, that's five+ months of negotiating with the neighborhood and planning department.

I can't see an outcome other than catastrophe for housing affordability.

Right, so my folks and I have basically finished repairing a 1920's duplex in the neighborhood of Belmont. I've moved into one side and am loving the area but I need to rent the other side soon to actually start having the building (slowly) pay for itself.

The duplex has almost fully separated utilities except water. That part might be tricky so I'll likely just pay for the water bill on both sides.

The other unit would make a small 2 bedroom but more likely a very nice one bedroom apartment. Extensive work was done to the building with foundation repairs, HVAC, kitchen upgrades, and re-doing bathrooms. I expect a reasonably higher rent per square foot in the area.

So, I just need some advise on how to create the lease. It seems a boiler-plate agreement just might not do the job.

Bonus points for tips in how to include Cozy into the lease. From what I heard from land-lords it's fairly effective at it's job and easy to use.

All of this to cut my teeth on basic property management and having a close eye on the surrounding areas.

Looks like most neighborhoods near the downtown core are getting overheated and overpriced. I’d stay away for now. Bought in the neighborhood of Belmont last summer and my jaw dropped from the price increases I’m seeing there and the bordering neighborhoods.

I don’t see a bubble but I’m getting a little nervous.

Bought a couple properties in the Belmont neighborhood area and Optimist park area last summer. Holy crap, the prices were getting silly to me then and now they are entering a whole new level. I've talked to some other folks that bought in the area and were pretty sure we overpaid a bit. Lessons learned.

In the long run, it's a good idea to hold them. I think those two neighborhoods will become some of the most walk-able neighborhoods in the city, with a fairly high quality of life. They don't build neighborhoods like that anymore.

In the meantime, I'm hoping the market cools soon. Charlotte does not a repeat of 2008. Unfortunately, the market looks like to be heating up even more this year.

It’s funny seeing this thread revived. 

I have long since hit a wall trying to find a lot and build a project and seeing it pencil out. Most of the issue is lack of experience but I suspect now it just isn’t the right time to be a small scale Developer, at least for a newbie.

Labor shortages, hiking land values, expensive construction, hostile regulations. It ain’t easy.

I might become a minor partner for a fourplex project in Optimist Park. A more experienced developer is finally building missing middle in the area. My way to finally dip my toe into land development.

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From what my pro formas suggest and talking to another developer once, land values have to be pretty low for a duplex to work. 50,000$ lots signal the time for a triplex or even a fourplex.

There is a modular construction company that has a factory not far from Charlotte. Clayton Building Solutions. If their reputation holds up, and if they can save construction costs, might be a way to get these projects to pencil in.

There is something seriously disturbing about all of this.

Renting out single family housing is a risky business model. If you lose a tenant, you lose all income in the property. How is this done on the scale of thousands of homes sustainable?

Meanwhile, this company is just overpowering everyone's bids and working over the housing market.

I don't like this.

The city council is voting on whether to do a road diet on Parkwood in just a couple weeks. It will add a full buffered bike lane all the way to downtown. It will slow down traffic a bit and make the road less blighting. They might even plant street trees.

I would only consider a fourplex because of the road diet project.

Building housing like duplexes or four-plexes and renting them out.

I also intend to build and keep so I need a high enough cash flow.

I'm looking at my first small scale development in the city of Charlotte. The most promising area is on Parkwood Avenue. It's in the middle of a triangle between Noda, Plaza Midwood, and center city. Rent's have climbed up in the area for some time, and new construction for the "missing middle" type of housing might be possible now.

The only issue is how much rent can I get over the existing stock of housing and what few apartments there are in the area. The rule of thumb I understand is new construction can enjoy rents 20-35% higher. Homes are renting in the area in a range from 1.00$ (deferred maintenace and habitat homes) to about 1.35$ sq ft for some home rentals (higher end finishes and cabinets). Do you think new construction will crack 1.40$ sq ft or more?

Modular construction is like a forbidden fruit. I keep getting told not to do it but the savings are hard to ignore.

I'm guessing 80$ a square foot for mid-range materials. 95$ will make something nice.