All Forum Posts by: Rob McGahen

Hi @Greg Dickerson, thanks for your response! I've lived here for about seven years now, and it's growing on me!

This all generated from an online business I started out of one of our spare bedrooms a few years back. It's outgrown my house and a friend of mine is letting me use some of his extra space, but I've grown beyond that. So, in looking for something larger, everything that I was looking for in the space I needed was either too big for what I needed, or was too expensive.

So, I decided to build what I needed.

To build a conventional building would be in the ballpark of $80-$100 a square foot. But, prefabricated buildings are far, far cheaper. I've talked to several companies, and they all offer what I am looking for at a much lower rate (they will handle manufacture and construction of the building). Now, I'm obtaining other quotes (electrical, plumbing, concrete...) just so I can put everything together. I don't have the final numbers yet, but I'm looking to be in the area of $25-$30 per square foot.

But, I don't want to miss anything. I've already talked with the city about what I'm looking to do and they have given me guidelines and such, so I know what I need as far as that is concerned. I already have a property in mind, and it fits my requirements (and it would work with code requirements as well).

I'd be curious to know your thoughts, and I'd be more than happy to discuss more with you!

I'm looking at building a commercial property, part of which I will use for another business that I own, the rest I plan to lease out to other companies/individuals.

I had thought about buying and converting a building to fit my needs, but after doing research, I discovered that I could build a building to my needs for half the price of buying a similar sized building - and that's before factoring in costs to convert the building.

So the question that I have for those who have built their properties is: Is there a guide or checklist that I need to ensure that I have things done in the proper fashion. I'm talking more along the lines of permits and making sure everything is good to go with the city that I build in. In addition, are there things you wish you knew before you built your first property that would help me in my journey? Thank you!

Joe - Terrific job! You are well on your way to reaching your goal of $1B in real estate before 40!

Do you happen to have a link to where you talk about your first deal (or first several)? I'd love to learn about how you got your start!

Just my two cents, but it's hard to formulate a plan until you get the place cleaned up. Obviously, you need to do what is necessary to get the place functional again, but you admittedly aren't sure what is needed at this point.

There are really two approaches you can take. Do the quick rehab following the cleanup, and keep her there. As someone who has a 91-year-old grandmother who still lives in the house she has owned since 1943, I certainly appreciate that.

You can also go with the complete rehab and put the unit on the market, and have her leave. You are likely well within your right to do that.

But you need to pull her family into this. Find out from them what options may be available to her. Who knows, she may still be able to live on her own for another decade, or she may be to the point of needing assisted living. If she needs assisted living, you will likely be able to proceed with the second option. However, if the family can help out, and she can stay on her own, maybe the first option is best.

Not everything has to be about money, especially if you can get this unit fixed up and take care of someone who has lived there for 30 years. Even if you don't make money on this unit, and are just able to cover your costs, being able to take care of someone in this fashion may be well worth it to you. It would be to me. Good luck!

FWIW, I own a 4 bed, 2 bath as my primary, and I occasionally wish it had a third bathroom (or at least a half bath). I couldn't imagine having five bedrooms and only two bathrooms.

So, I'm on the side of making it one large bedroom with a good sized closet. If there is a cost effective way to add a half bath, I'd at least give that consideration as well. There seems to be a trend right now in having houses that have two master bedrooms, so you may also want to keep that in mind. Good luck!

That's awesome. Were you ever able to find out why they put a new roof on it? Did the terms of the deal change at any point?

Just a hunch, but if you have to ask that question, then property that may be worth eight figures might be above your experience level...

Do you find all of your deals on the MLS? Off? Mix?

Dan, I'm in a similar position such as you find yourself in. I'm not quite ready to take the plunge yet, but definitely within the next six months or so, I want to either have my first unit, or be well on the way to having it. I'm still doing my research and learning things I need to learn first, but if the first place I own ends up breaking even, then I'd continue that a success as a cost to learning.

Good luck, and let me know if there is anything I can do to help!

To me, $4,000 a year for heat for a duplex sounds expensive. Is oil your only heating option? As others up thread have mentioned, electric may be an opportunity. What about natural gas?

Also, if that much oil is being used, how well insulated is the building? If that much is being used in the winter, then what do the electric bills look like in the summer with a/c?

I'd strongly recommend taking a look at not only at redoing the HVAC, but also improving the insulation (including new windows/doors).

If I were a tenant, it would be a large red flag if my utility bills were so high, and I knew I could go elsewhere and pay significantly less.

So, take a look at all of this, run your numbers, and see if this property is still worth pursuing. Good luck!