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Updated over 2 years ago,

User Stats

12
Posts
13
Votes
Justin Haberman
  • Rental Property Investor
  • Penrose, CO
13
Votes |
12
Posts

Multi family vacant property development start to finish.

Justin Haberman
  • Rental Property Investor
  • Penrose, CO
Posted

Hello BP world.

We are starting the process of developing a vacant piece of property. I wanted to document it start to finish to hopefully help someone else along the way and also allow us to look back at our success and failures.

Our background: I'm a firefighter in southern Colorado, married with two kiddos, who had a fellow firefighter get me interested in real estate. Like so many others I read Rich Dad, Poor Dad. Found us a 16 space mobile home park that was extremely run down. After purchasing it, 2 evictions, one pit bull attack, sewer back ups (Thanksgiving morning), and numerous sleepless nights we sold the park for a profit. This allowed us to payoff the vacant piece of property that we had closed on the day the owner of the park called us saying he was willing to sell! Fortunately, we were able to get in touch with some smart bank folk who were able to get us some creative financing.

We've now had the property for two years. I swore I was done with investing and just wanted to live a simple life and enjoy my family. Well the property is not selling and the vacant property taxes are very expensive. So we have started to look at developing. We were approached by a couple who have decided they wanted to get into real estate investing. I believe God knew I would't want to do this alone again so here they came into the picture.

Progress so far:

We have met with the city planner and spoke with all utilities. All utilities are to the property and we've obtained prices. The piece of property is .94 acres. The city will allow 10 units on this much property. The adopted building code says that anything over a duplex is considered commercial. Therefore to avoid that expense (sprinkled building, commercial insurence, etc.) we have decided on 10 duplexes. Building materials are very expensive at the moment in Colorodo. We meet with a builder on the 16th to get an idea on price per sq/ft. We are also getting prices on manufactured duplex units.

More to come......

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