All Forum Posts by: Payton Chung

As mentioned above, it might be possible but I assure you it's not worth it.

Basement excavations are sometimes done here in DC, which has very high prices and very strict height limits -- a combination I wouldn't wish upon anywhere else. Even then, it's done where there's already a crawlspace rather than cutting out a slab from below.

I live in a different cooperative, and the onsite maintenance is very handy indeed -- I can call the staff plumber to go fix something, and it's billed through the building.

That said, I hope you are aware about the unusual land situation at River Place.

Anyone interested in this topic should weigh in on Raleigh's proposed new ordinance. You can review the proposal and provide feedback (by July 28) at this link:

https://publicinput.com/9797/

As others have mentioned, multifamily supply is thin and pricing is very competitive. One alternative is to take the extra step past the house hack and make your own; in DC, Arlington & Montgomery Co it's now legal to create a second, "accessory" unit within most existing houses:

https://www.smartergrowth.net/...

I'm a ULI member, and have been involved in helping them pivot the ULI Education classes towards entrepreneurs, from a longtime focus on bigger firms. Most of the value in ULI is the local programs, which vary a lot by city. You could reach out to the Virginia District Council's YLG (Young Leaders Group) leaders to ask about how active they are in Hampton Roads. 

If you're looking for a credential that's lower-commitment than a degree, several universities (like VCU, I think GMU too) offer grad-level certificate programs of varying lengths. The classes can later be applied to a degree if you like. Since they're offered through accredited universities, you can also get some tax advantaged treatment (e.g., a 529 or as continuing education).

FWIW, a tiny-house group in Atlanta is doing a virtual workshop on Thursday about developing pocket neighborhoods:

https://oklahoma.uli.org/events/detail/CABD7705-6C0E-437B-A243-274637637601/

I'm not affiliated with the event, but I did attend MicroLife's first in-person version of this workshop (just a few months ago) and thought the tools, examples, and methods they presented were useful. It's mostly drawn upon their experience, developing a for-sale project in suburban Atlanta.

And the most cost-effective way to add an ADU (& the only legal way in most of Cary) is as an addition. Fannie/Freddie will appraise a detached ADU as additional square footage, but FHA won't, per a reply here:

https://www.biggerpockets.com/forums/44/topics/764555-duplex-adu-in-california

A local foundation in Chattanooga published this handbook recently to encourage people to start small infill development there. Much of the focus is on 2-4 unit owner-occupied buildings, which can be financed with conforming residential mortgages rather than commercial mortgages. There's a lot in it that's applicable to other markets, though of course rents/costs and availability of appropriate land will vary.

https://9ff107f5-7cf0-429d-86ae-2d8b78844597.filesusr.com/ugd/036083_5f8e28d6b30b4e6ea946ee0b4ea70fab.pdf

Oops, forgot to actually post this:

Yes, 75% of rental income is typical. Again, you can either go with their appraisal (likely lowball) or bring a lease in hand (could be tough to sell a renter on).

"Shared appreciation" is a new concept offered by a couple of companies, where you sell a fraction of your equity to an investor. It's not dissimilar to a HELOC, but it's equity, rather than debt. Point is one company that underwrites in DC.

ADUs are also worth considering for flippers. Many of you have doubtlessly noted the demand for dual master suites -- especially to the 20% of Americans (and growing) who live in multigenerational households, but also for the broader market. AARP surveys show that 1/3 of Americans would be interested in an ADU.

Flippers could also add an ADU to appeal to the large pool of investors who want duplexes but don't want to handle construction themselves.