Value add opportunities under new Boise Zoning code create cashflow opportunities.

[Robert Frazier]

In December 2023, the Boise City Council approved a vast rezone of almost all land types across the city. This increased the average density by 50% and opened up opportunities for multifamily and ADU to be built on almost all residential zones.

In a situation like this, new opportunities are bound to present themselves to homeowners and to investors. As we underwrite, new, small multifamily developments, and lot splits we are seeing that there are cash flow rental opportunities that we’re not there before.

 New opportunities are bound to present themselves to homeowners and to investors. As we underwrite, new, small multifamily developments, and lot splits we are seeing that there are cash flow rental opportunities that we’re not there before.

For example, a 1200 square-foot house on a .2 acre lot is now able to be turned into a 2, 3 or four unit small multi family with opportunities even to add an ADU to the back of the property. An investment of just $450,000 for the land and the 1200 square-foot house now has the possibility of creating two or three more units of housing cash flow as a rental and force equity of two or three times the initial value.

I found that most investors are not paying attention enough to the zoning and opportunities available to each property. When we look at zoning and we see the density available, it starts to open up new possibilities for creating housing that is somewhat affordable and also building low cost units for example a second story edition could cost as little as $180-$200,000. This would be the lowest cost unit available within most midsize cities across America.

Where are you seeing zoning opportunities for redevelopment and additional units in single-family home zoning across America and how are you taking advantage of it? I love to work with investors to develop small infill parcels and help them find rental properties across the Treasure Valley in Southwest Idaho. Looking forward to connect.