All Forum Posts by: Seth Holmen

I built a house in 2017 and looked back at what I paid for a few components. Here is the actual amount I paid vs. the same thing today. 

Thanks. Let me know a time and place. 

See if any of these work for you. 

https://drive.google.com/drive...

Rents are good in Elgin. You will always have a strong rental pool here. All of the new construction is taking the best renters from the area. You will need to determine your target market. Don’t expect to get close to the same rents as the new stuff if you are buying class-c property. 

That does look very interesting! Check to see if the plat has been approved by the city. Are there PINs for the new lots? I would get it under contract before you start talking to builders / developers. 

Some questions I would have for the city. 

1. Are the plats official or do you still need to have all the engineering completed for the final plats?

2. Water tap fees / Utility fees 

3. Any special assessments or impact fees associated with the new lots? 

4. Flood plain issues? 

5. City water / Sewer? - line extension cost from city?

6. Minimum requirements for a new road. Will you need an underground storm water system? 

7. Storm water retention / detention requirements?  

We looked at it for a 33 unit building. It wasn't worth it. Savings was only in construction time. Not on other labor or material. We only saw about a 5% savings overall. We were also then forced into a narrow box of room sizes and ceiling heights with a modular unit. I do believe the industry will mature and this will be the way to build things in the future. It's just still a little early. Alternatively, I could see how a single story prefab or modular might make sense. Almost a glorified mobile / trailer home. 

Are you zoned properly to build anything different than a single family home? Would it be an addition or new build? If new build, then you are talking about subdividing the 1 acre lot. You would need to confirm if this is allowed. 

What's left to finish? You may need to fire him and just finish it yourself. Give him a notice that if he doesn't complete the work by a specific date that the work will be completed without him and the remaining funds will be deducted from his contract.... I doubt this would hold up in a court case but it might make him move. 

Step 1 is to confirm what zoning will allow on the site. This not only involves the type of unit but how many parking spaces will fit on your site. 

Step 2  is to talk to a builder to get a budget number on $/sf in the area

Step 3 do some due diligence on associated fees (permit fees / water tap fees / utility tap fees / impact fees)

Step 4 is to talk to an architect to draw up plans for the build - have the builder involved during this process to make sure what is drawn is still within your budget. Also be doing market research here or talk to a local broker. Understand what type of units are renting in the area and the level of finish. 

Step 5 secure financing / get permits / start building. 

Now meaning after the TIF is finalized. I would start a conversation with the city economic developer or city manager to see how they are structuring the TIF and how it could benefit your property. They city often has projects in mind or types of projects they want to see from the TIF.