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Updated about 10 years ago on . Most recent reply

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Melissa B.
  • Chicago, IL
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new construction-- how to proceed in the initial stages?

Melissa B.
  • Chicago, IL
Posted

I've found a single family home in a market in Chicago that is definitely on the ups.  The house is a total dump, but the area is perfect (I've researched this area extensively and have been searching for a while) and the property itself is zoned for 4 units. 

There is strong potential for this property, but I need to figure out if it would be profitable for me to pursue.  How can I figure out what it would cost to build a 4 unit building on this land?   Also, who must I meet with in order to ensure that what I want to build is up to code/ legal?  Is there one person I might meet with, that would be able to act as consultant in this process?  If so, how is this person paid/ what is reasonable for them to charge?

Any help the forum might provide would be greatly appreciated-- thank you!

Melissa

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Karen Margrave
  • Realtor, General Contractor, and Developer
  • Redding, CA & Bend OR
4,161
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Karen Margrave
  • Realtor, General Contractor, and Developer
  • Redding, CA & Bend OR
ModeratorReplied

@Melissa B. The way you find out if you can build 4 units on the property that currently has a SFR is to go to your local Planning Department and talk to them. You may also be able to go online and look at the zoning for the parcel. Zoning is what determines what can and cannot be built on a parcel.

If the zoning is correct for your intended use, you will need someone that is familiar with the codes (set backs, easements, lot coverage, height limitations, etc.) to design a project taking into consideration all of those things. You can use an architect or draftsperson (as long as they have a proven track record in the area) or a G.C. to spearhead the process for you. 

In addition to all of that, you want to check market values so that you know once built, what the units will be worth. You don't want to over build for the area. 

Here's a blog I wrote some time ago on development, this may help. Development Basics

Real Estate Development 101 (this was a 4 part series I wrote) 

  • Karen Margrave

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