Buying land and developing new multi-unit building

[Sam Kasa]

Hi - I currently rent two single family homes in Overland Park area. I am now interested in buying land and developing new 4-Plex units. Depending on the cost, I would like to start with 2 units and later build more as the space/budget allows. What are some of the things that I would need to consider before heading out to buy the land? Are there City ordinances/zoning laws that can keep me from building multiplex units? If you have any experience with this, any advice is very much appreciated. Thank you!!

[Eric Teran]

You don't need an exact address but you do need to know which area. The more exact location the better. Zoning laws can be different on the other side of a street. Just call the municipality and ask. You can also try online. Tell them the area and what you want to build. They can easily and quickly give you an answer.  

In regards to a price from a builder you are going get a wide range if you just ask for a basic quote as, "How much for a 3,000 SF two story duplex?" A good builder won't give you a price. They need more information. Also, if this is new construction you might need an Architect as well. 

Jim Kent, another BP member posted a similar question HERE. I gave him a long reply dealing with zoning, building (modular rather than stick built) and estimates. If you have any questions after reading that just ask away.

One thing I forgot to mention to Jim are the hidden cost of construction. If the zoning department says you can do it then call the building department and ask for the following fees (not all of these will apply):

1. Building Department Fee

2. Sub-contractor permits (electrical, plumbing, etc.)

3. School Fees for new construction

4. Hook up fees to utilities (gas, water, sewer, storm drain)

4a. If you need to tear up the street what are the requirements for repaving?

5. Do you have to build sidewalk/gutter along property line at street?

6. Any storm drain requirements. (this can get expensive)

With those in mind be sure to ask your builder how much the following cost (this can be a ballpark) that can be a significant amount:

1. Sewer connection

2. Sidewalk/gutter 

3. Storm drain connections or a catch basin (this might be harder to estimate)

There are a lot of hidden costs pertaining to building anything. Be careful. I'm doing it now building my own modular house. You can go to my blog/website and see my experience. If you go through with it just send me a PM and I'll help by sharing all my mistakes so you don't do the same. 

Good luck.