All Forum Posts by: Account Closed

Jennifer A. - the exterior will largely remain the same and the interior will be gutted 100%. The building used to a b single family and there is a large stairwell right in the middle, less than ideal for optimizing floorplan. Demo is nearly complete (my guys are so fast!) and now that the walls are opened up I am meeting with the engineer on Monday to figure out what we need to do from a structural perspective (i.e. Weight bearing beams and walls) to bring my vision to life. Will post pictures of the blank canvas shortly. Any other questions, feel free to post in the thread.

Hi Melissa Harris - I find my comps on mls and look at valuation two ways. 1. How does the building comp out to other similar buildings? In Boston there are typically pretty decent comps although sometimes you have to look in different neighborhoods from a location standpoint but have similar demographics and rental cost. For example, this part of Roxbury (Fort Point) would comp to Mission Hill and JP but not further south and east towards Dorchester as it is further from the T and rent is less. 2. The other valuation metric I use is to see what the building would be values at if I sold each unit as a condo. To get to that value I look at condos in the area mentioned above. Regarding how I get the appraiser to my number (which is typically reasonable and based in fact) is by doing a few things. A. ALways be there at the appraisal and pitch to the appraiser what value you think it should be and why. Casually bring up that value as many times as possible while you walk the home with them. Walk them brought your valuation methodology. B. Give the appraiser a spread sheet with the comps you think are comparable and how those comps and the map to your valuation. Again- the more the appraiser sees the valuation you are looking for and that it is supported in fact, the better I also like to follow up with a call/text/email stating the valuation you think it's worth and to offer to have a discussion if he isn't getting to that number. Valuation is very subjective and the same data could produce valuations that are 20-30% apart. In other words, the data could support both a 1.5 mil valuation and a 1.8 mil valuation. As the owner/developer you want to put the birdie in the appraisers ear that they should be on the high end of that range.

Demo has begun...

Closed yesterday. Had my photographer go out and take pics prior to demo. Here is what we are working with:

We are on record! Demo and clean up starts this weekend! As-is pics will be posted later today. Get ready to see something UGLY!

Enis Shehu - John Moran, Alpine Advisory. He knows everyone in ISD and has connections within the zoning board of appeals.

I close on the property on Wednesday (9/27) and already have the building permit issued to demo the entire building and dig/pour a new basement slab for the garden unit. I had a call with my zoning attorney and architect today to map out how to streamline the renovation process while waiting on zoning approval to change the building from 3 to 4 units. Here is what we are going to do: - Shortly after demo commences my zoning attorney will file for an amended building permit which will enable us to do our "by-right" work (I.e the stuff that does NOT require a zoning variance). The stuff we can do by right includes: renovating the garden and first floor units in their entirety; and renovating the second and third floor units into a two level single duplex style unit. We can also build out the roof deck. - When we receive zoning approval for the fourth unit, we will apply for the building permit to separate second and third floor duplex into two units. This will just require some minor additional items. - by doing things this way we don't slow up the construction process as zoning approval could take 6-9 months! I will post before and after pictures of the demo as the project progresses, as well as finalized plans.

Dan Heuschele - fair point on the Capex, albeit $11k per year seems a bit excessive.

Property p&l below. I assume no vacancy (there never is) nor property management costs (I self manage). 

Ned Jackson Yes - that interest is factored into the cash on cash return. The return would higher if it was straight "cash" from the bank. I don't have that type of coin just hanging around. All of my wealth is tied up in real estate. :)