All Forum Posts by: Andrew G.

 Drew,

Good idea. But we have access to city water and Sewer. The land has 800ft of frontage of a primary rd to the highway.

 Thank you! This is very helpful. 

 @Melanie P., 

1. hat's a conversative methodology for incorporating Capex for a quadplex?

2. I have already talked to Zoning, Shouldn't be a problem at all.  Just too early to start the process

3. Do you recommend any good sites to pull comps and run a report? One report says .77 psf. But based on 19 listings, the avg is 1.50. I would rent each unit out at 2k minimum. It is on par with the market in that area. Which at 1700 sqft per unit, .85 .psf.

Thoughts on the above information? Really need a good way to estimate my monthly/yearly Capex.

@Greg Kasmer awesome feedback too. I have adjusted my numbers and looking at 6.83% so came to the same conclusion.
We actually own a 20 acres adjacent to the 3 acre lot and plan on building our dream home there. Just don't want to build anything on our farm land :) The lot It is 200 yards away from the highway and less than 4 minutes from the interstate. The country club is across the road. Is it it rural? No. Though the area is land locked because of an older Farmer. But his land is zoned PR-BD Planned Residential-Business District which is up against the school and our land. I also talked to the planning and zoning team for the county. Shouldn't have any issues converting it over to RD R-2 Medium Density Residential District and can build 3 quadplexes on it. So it makes sense of purchasing it one way or the other. The question is, should we develop on it?

- Looking into Capex Reserves, thanks for this

- At 337k per door and 200/psf sounds okay for us. 

I heard anything over 5% cap rate is a fair investment? To me, buying the land is a no brainer. The question is, what do to with it and does it make sense to develop?

Thanks for the help!

All,

I'm considering an exciting opportunity to buy 3-acre lot adjacent to a K-8 school. This lot is unique because there are no other neighborhoods within walking distance, except for this one. The asking price is $150,000, which includes a very old house. My plan is to pay for the lot mostly in cash, build a quadplex on it, sell my current rental property and primary residence, and move into one of the units. Concurrently, I intend to construct our dream home on an adjacent 20-acre parcel that I already own outright.

I've double-checked the property taxes, and they're not just accurate but slightly on the higher side. Based on my market analysis, $2,100 seems reasonable for a 1,711 sqft condo in this area with a lack of apartments. We've already selected a design for the quadplex and acquired a detailed cost estimate for the build, which we project to be around $1.2 million. This area is slated to be the next biggest development in the next 10 years.
From my calculations, this seems like an ideal move, but I'm aware that there could be considerations or risks that I haven't thought of. I'd really appreciate it if the community could review my plan and share any insights or potential pitfalls I might have overlooked. Thank you for your input!

Thanks for the insight. What would a premium look like for a 1950/month rent, for 6 months in your opinion? 

There was recently a fire in our neighborhood (Everyone is okay), and possible tenants want to rent our house, but the insurance agency will be making payments on behalf of them. I have never dealt with an insurance agency before to make payments on behalf of the tenant. I worry that I require a 1-year lease, and it will not take 1 year to complete the house, and they leave before their 1-year lease is up. Will the insurance agency cover the difference if the tenants leave a few months early? 

I have a meeting with the insurance agency tomorrow, so I am sure they will answer this question, but curious what other landlords have experienced dealing with insurance agencies?