Building a house

[Brian Kehoe]

I currently own a multifamily house on a double lot in Brooklyn NY. I'm thinking I would like to build another multifamily in the adjoining lot but I'm hearing from a lot of people that it may be more of a headache than it's worth. Has anyone ever built a rental from scratch and how was the experience?

[Matt Lane]

Hi @Brian Kehoe

We are experienced developers and have done just that.  Assuming you have the proper zoning and lot dimensions it is definitely possible however not the simplest process for a novice to take on by themselves.  Navigating NYC building regulations and code enforcement exhausting and very frustrating especially if you plan to GC your build.  If you have no experience building then i would hire an experience builder/general contractor to do the job for you, this will save you a lot of aggravation and frustration however it will cost you more.

A few things to consider

- How do you intend to pay for the development?  Do you have the money or are you going to take out a construction loan?  If you're taking out a construction loan you will definitely need to go with an experienced GC

- Expect the subdivision, plan approval and development process to realistically take 18-24 months.  There will be others who will tell you that it will be shorter but DOB is very busy and moving very slow with permits and approvals even when using an expediter.

- Have you considered subdividing the land and selling it to an experienced developer?  Thus us a faster way to make a profit and will cost less money, time and aggravation for you

Hope i was helpful, feel free to message me if you have any questions