All Forum Posts by: Prashanth Mahakali

@Mark Ainley @Khizer Husain

With a building that size, you stand a good chance of a zoning change. In my opinion the best zoning for the maximum flexibility is B2-3

. B2 districts are the only ones that allow a residential use at grade level. It’s good to have permits pulled on any work first and then apply for the zoning change since you could be working on the other units while waiting for the zoning change process to go through. I have a great recommendation for a good zoning attorney. Overall, it will be a great project. Good luck!

@Emanuel Escarpita

Next step would be to have your due-diligence team evaluate it. Attorney, Architect, GC, Property Manager and a realtor. What you learn from each of them will help make an informed decision. Good luck!

@Tom Casey, the most important risk you run with a rogue contractor is him filing a lien on your property. I assume he has been fired already or you are going to. When you get a new GC on board, it’s necessary to document all work that was done incorrectly and copies of all communication with the ex-false-Gc.

Pull permits with a new crew. Even if it's an easy permit (EPP) to start with. Permits protect you and your investment. If you need references ask your HOA about the last contractor who worked there. Use websites like Homeadvisor or angies list to get contractors with good references. Verify licenses and insurance being current. Talk to their references.

I always suggest everyone documents their first experience since it will be a guide for following projects. Do something a bit better or different until you Have a team or system that works.

This is an amazing community but can get overwhelming with the amount of information. Take a step back and restart the project with a new team. All the best.

@Richard Quijano You need a very reliable contractor to handle the construction and subsequent city inspections. I have found that Architects play a supporting role in porch construction by obtaining building permits. Hopefully you already have a good contractor. I am happy to suggest some good porch contractors. Good luck!

I am late to the party but I am here. Thank you @Samuel Pavlovcik for bringing this thread to my attention. I think Architects would make brilliant developers. Every Architect who has a love for the business side of the profession should get into development. We are the quintessential "Jack of all trades". Another theme I noticed is about licensure. I believe every one who goes to Arch. school should get licensed and do the CE to stay licensed. It just adds value to whatever else you are doing. I owe everything I have now to licensure. If I was not licensed, I would not have been able to take advantage of any of the opportunities that came by me. I also got a real estate license and now a general contractor's license. I constantly stress the importance of being licensed. However, I am sure you can make your big bucks without it as well. It just takes alternate skills. I am so happy to see Architects part of the RE discussions here at BP. Every successful investor needs a good Architect as their partner. However not every Architect is a good partner. We all have similar skillsets but our personalities make us unique. So I emphasize that a lot when talking to a client. Good luck to all and hope to be part of several other discussions~

Prashanth

Thank you, @Jonathan Klemm and @Mark Ainley! I really appreciate your recommendations! 

@Daniel Adler Will be in touch shortly! 

@Jonathan Klemm Thank you!   @Marco Pangilinan Feel free to connect with any of the wonderful resources here at BP. My team and I are happy to share information specific to your project.  

@Jonathan Klemm thank you! @Michelle Boyle there is a way out but would need more details. Happy to provide some suggestions.

@Kavan Kucko

If there is a life threatening situation in the building, the fact that you have people living in the basement unit will affect you as the owner.

Best case scenario: you buy the building, evict or pay the basement tenants out, apply for a zoning change to add a legal basement unit, apply for building permit to do the work, pass inspections and rent out the basement unit as a legal dwelling unit. While doing the repairs to the legalize the basement unit, you may have to do other work in the building like upgrading electrical and water service etc. So, this is the most expensive and legally sound scenario.

Worst case scenario: you buy the building as-is and continue to collect rent. A tenant calls the city on you. The city will cite you for building violations and force you to deconvert the basement unit and restore it to an open basement. If there is a fire, not only will you get a building violation notice, you could face civil suit for an illegal unit. Unless you own the building under a LLC and in some cases, they will find a way to come after your personal assets. So make sure you have more than adequate insurance.

Realistic scenario; buy the building, evict the basement tenants and keep it as a vacant basement unit. If you have the money, remove all the partitions and keep it as an open basement. Do nothing else.

The question really is about your risk tolerance. The fact that you posted about this tells me your risk tolerance may be in line with the realistic scenario. That’s what I would do.

Quinn, 

Here are some steps you would take when considering a project like this. 

Given that you have an RS3 lot, you would need a zoning change to RT4. You already know that. The process of zoning change is a fairly long one but with a simple start. A zoning attorney is required to start this process. Typically the zoning attorney is able to tell you based on your ward alderman/alderwoman, the steps needed for you to approach the alderman's office with a zoning change. You can do this yourself but I would not recommend it. The alderman's chief of staff is usually the point of contact. He/She may advise you to present your plans to the local neighborhood group. Based on their feedback, the alderman would provide a "letter of support", which the zoning attorney would attach to the zoning change application. You go through about 3-4 months and a zoning change is usually approved if the alderman supports it and the neighborhood group supports it. Once approved, the city zoning map is updated. Now your architect is ready to submit plans for permit. The permit process can typically take about 3-4 months during which time you have identified contractors and have them on board with the bank's due diligence process. 

Once a permit is issued, you can start construction as long as the ground is not frozen. Your contractor can advise on next steps.

Overall, this is not an easy process but if you have the patience to go through, it is worth it. 

As the Architect, I have sat next to the zoning attorney and clients in the zoning change hearings. It is fun( I am weird!) and as the Architect, I love the process but it is not for everyone.

Good luck!