How to construct a build for rent

Question

I will outline all the steps and processes to construct a build-for-rent home.  It is not for the faint of heart.

I own four lots in Jacksonville and will be constructing 4 identical houses.  The houses are 3/2 with a garage, 1293 sq ft heated, and cooled,  total square footage 1292.

My goal is to have the house rented and completed by May 1.

Lesley Resnick · Answer

There was a burned out house on one of the lots.  The house was on the city's radar and I had to make sure that I followed their procedure exactly.  I have repaired houses that were on fire, never demolished one.

1.  Since it was on fire, the electric was already disconnected.

2.  I needed a plumbing disconnect permit.  It is one of the few permits that you do the work then apply for the permit.  The plumbing permit must designate how far from the street the sewer was cut.  Then they inspect and close out the permit.

3.  Demo permit

The demo was done by a local guy, he is an interesting character.  Prior to the crash in 2009, he had 10 truck on the road doing demolition work.  He said he was killing it and one day people just stopped calling.  He had a staff of 20 and almost that much equipment, mostly financed.  Fast forward to current times, it is just him and one dump truck and a tractor.  He is quick to say he owns it all and the business is just him.  He is not making what he was, but says he is happier without all the headaches.

Jason Crowe · Answer

How easy is it to split a lot?  Is it simple process of just getting a survey and designating where the lines will be drawn then the appraiser completes the request or this there approval etc. to be done and channels you have to go through?  I was told it was pretty straight forward and they will do what you ask but if you didnt think it through right it could hurt you in the end but the split part they just do what you ask for your land you are asking to split.

Lesley Resnick · Answer

The lots are split and reflected online. I need to go back to addressing and get a number for the second lot.  I may go owner occupied. I was talking to a lender and their low income programs are amazing, if you qualify.

Lesley Resnick · Answer

Got another citation from the city.  They told me if I send them proof we are moving forward they would not write me up.  I called and left a message for they guy at the city.  I need to deal with the city on the splitting of the lot.  I have not gotten back to it.

Lesley Resnick · Answer

Kind of loooks like it was house or maybe a playhouse.  There was water at one time, but no electric.

Lesley Resnick · Answer

Thanks for the kind words…

I did this for a fix and flip last year and thought I would docuement this build.

The building was secure and the city inspector went by and agreed it was acceptable.  i am not sure what the building will be used for but it is a nice feature.

I was talking to an investor I know and he thought that I should sell them off retail to owner occupied, rather than investors.  It is a low price point house and there is demand for them.  I am just not sure if there are a lot of first time home buyers in the market.  I have time before I have to make a decision.

Trevor Andersen · Answer

Awesome to get the play by play! Thanks for taking the time and I look forward to following the progress over the 6-9 months

Lesley Resnick · Answer

Spoke to the city this afternoon.  They have accepted my documentation for the secondary structure and will need to provide more info in a month to prove we are moving forward.

They also informed me that I have an open violation for not securing the building.  They are going to send a contractor to secure the building and charge me.  I have all the windows and doors covered up.  My only concern is if someone pulled them down.  I will send someone by tomorrow.

Lesley Resnick · Answer

Interesting fact:

You may not have a secondary building without a primary.  In other words if you knock down the house (primary structure), you can not leave the garage.  This is exacly what I have done.  There is a small block building in the rear of the lot.  The city has sited me for the building.  They have agreed not to fine me as long as I can demonstrate that I am in the build process.