Attic-conversion and triplex re-zoning

[Kali Terry]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Saint Paul.

Purchase price: $220,000
Cash invested: $4,000
Sale price: $240,000

Used FHA financing to house-hack duplex, while working with city to up-zone the proprety as R3 (triplex) and convert the 3rd floor attic-space into a large bespoke studio apartment.

[Kali Terry]

Hey Jeff -- I realized I left alot of details out and that's partly due to the way the format of the post is set up. When you choose the buy-and-hold option for a post it still provides a sale box in which you must enter a number. But to clarify, I did not sale the home. All three units are now rented after the conversion, which costs around $45K to complete. Keep in mind, I self performed most of the work, hiring out the electrical, plumbing and chimney removal to subs. I most likely would of spent around $80K or more hiring a GC to do turnkey work. 

I submitted my drawing to the city, which advised me I would need to install R-30 insulation, fire rated doors and widen my staircase, among many other checklist items, in order to meet compliance. I'm not sure if you're aware, but St Paul passed a new ordiance that allows homeowners to add additional dwelling units and rezone their properties. The reclassification is a lengthy process which involves a $2200 application fee with a myraid of other fees, including a $4,000 park and recreation fee. I personally feel it was worth it in the end, but definitely not for the faint of heart. 

Hope that was a bit more helpful. Please let me know if you have any more questions, or better yet, any off-market listings you'd care to present. 

Thanks,
Kali