All Forum Posts by: AP Horvath

The interesting thing here is that if we had gone by the easement as it is written in the deed --- we would have not been able to locate it successfully. 

The only reason we ran into the water line is because our geotech accidentally drilled right into it (since it is near a proposed building). The water line didn't show up on our survey. 

So doing a utility locate as part of due diligence is key. 

@Henry Clark

Thanks as always. 

1) Yes, that is from P&Z. 

2) & 3) -- I think the all-in cost to remedy would be $50k (which also means the cost is too low to justify a lawsuit) -- and the numbers still work. 

4) I don't think they knew. The lot has been sitting unimproved for last 60 years. I already bought the lot a year -- at what now looks like a fantastic price for the local area. 

We own an unimproved lot within the city limits that we are in the midst of entitling for commercial (office-warehouse). The issue is that there is a water line about 21 feet into the property, too close to our proposed buildings.

It turns out that by the language of the easement in the deed, both the water line and the easement are actually misplaced as the water line should only be 7 feet west of the right of way.

The reason for this discrepancy is that when the water line was put in place in the 1960s, the property owner then didn't cede a (~14 foot) right of way to TXDOT -- which means that the property line actually juts out into the road, relative to the lots immediately north and south of our lot (who did cede a right of way to TXDOT).

We'd like the local water supply company to pay for relocating the water line, and while they acknowledge the water line isn't where it should be, they claim a prescriptive easement indicates they have no responsibility to move it or pay to relocate it.

We've had an initial call with the local water supply and while they will let us address their board next week, at first pass, will not consider participating in paying for relocation.

Other than: call a RE attorney (which I already have) --- has anyone succesfully dealt withs such an issue? Any advice? 

@Daniel Paul Goodman

Some folks created a nice AirBnB facility out of shipping containers not too far from me. I think this is probably higher end than what you're looking to do -- but interesting nonetheless:

https://odonataescape.com/

I spoke to my commercial banker not too long ago -- he said his bank is approving 45-50% DTI ratios for residential loans.

In other words, there is a bubble being inflated without a doubt -- only question is: when does it burst? 

@Ronald Rohde

Very cool. What's your strategy for adding value on those projects? 

Thanks @Ronald Rohde -- that's helpful. 

At this point in time, I am *NOT* preparing an offer before purchase --- something you recommend? 

What sort of properties are you looking to acquire? 

@Samuel W.

I think a *very rough* rule of thumb is about $4,000 per unit (when doing replacement cost calculations). So in your example, $800k. 

That said, you prob wouldn't ever want to put 200 units of one product size/offering in one location. 

We're looking for offmarket storage & industrial deals and have developed a database of owners and properties, whom we will be calling and visiting. 

For those of you doing the same, what is your typical script and storybeats? Any advice on what works and what doesn't? 

@Henry Clark -- I am sure I speak for everyone who has interacted with you on BiggerPockets -- thank you for your great advice, given so generously. Hope you had a great 4th with your family.