All Forum Posts by: Dorothy Ma

Dustin Frank I would suggest go ahead and get it under contract first, but make sure you have some clauses in the contract so you can do your due diligence-you need to make sure what you’re hoping can be built can actually be built within zoning codes. You can do some of the leg work on your own at first in terms of contacting the city to understand what the zoning allows. And a feasibility study can be done for a reasonable price. Send me a PM if you have specific questions, happy to answer questions regarding the entitlement side once you have it under contract and start to engage the city.

I would also recommend you get an architect on board to help with the Rezone process, as well as doing a site study based on zoning, setbacks etc.

Is this city of Denver? You’ll need to check local codes but if it’s zoned duplex, but currently the use is single family, you should technically be able to convert it if you bring it up to code (IRC - the version varies by jurisdiction) which requires attached two unit dwellings to be separated by 1 hour fire separation. In this case, you’ll need to fire-rate the floor/ceiling and any structures that go up to the first floor unit deck. I just ran into this same issue with city of Edgewater and that’s what I need to do to make it a duplex. This can get pretty costly, depending on how the unit is laid out. Did you have to provide the 1 hr separation when you did the side by side?

I have someone I can recommend that has built fences for our properties and do a lot of work on our flips and developments. PM me

You should also consult a local architect because zoning regulations, setbacks, build-to, height requirements, parking requirements, etc will all vary. I hate it when I see a land deal advertised for let’s say 100 units but when you really do your own homework maybe you can build 100 micro units or there’s no room accounted for enough parking, etc. Your sales numbers should really be based on some type of pro forma, which accounts for amount of units at x square feet per unit, etc, and general costs associated.

No, if it's zoned single family then only 1 kitchen with 1 stove. You can get away with a kitchenette that has a fridge and sink but 2 stoves would violate SFR.

@Steve K. - sounds like the triplex is grandfathered in since the zoning is Single Unit now. Anytime you're adding square footage with Denver you'll need to go through zoning and make sure you meet the setback/bulk plane requirements and are still within the lot coverage requirements.  If you want to sell it as separate townhomes in the future, you might want to make sure the unit separations are correct fire rated and maybe do some of this work with the pop top.  I would suggest the best way to go about this is to have the feasibility/zoning study done first (which sounds like this is what you're thinking too), then get pricing for full permit drawings and the construction from a design/build firm.

Matt M. And Bill S. Both have great points. And I agree with both your cost per sf is low. The art district homes you mentioned were built a few years ago, just within the last 6 months lumber prices have increased dramatically. Not to say they won’t go back down, but $185-$200+ psf is more realistic and safe to use now, and if you’re building 1 year from now they may go up more. Also, seems like that’s just hard cost numbers. Your hard cost + soft cost number should be closer to $200k-$215k plus. Development fees are costly (sewer tap fees, permit fees, review fees, engineering fees, etc) and Zoning codes keep tightening so make sure you start the site development process as soon as possible. Like Bill mentioned, Recent zoning amends affected the value of homes in West colfax, where you could build 4 units before now you can fit 2-3 max. On the financing side, unless you have 25%+ of the construction cost laying around, you’re going to need a partner to provide the financial backing for this. Start engaging lenders now to understand how much cash you need to bring. And usually when it’s your first development, banks and lenders want to see experience so they want you to partner with someone who has experience under their belt.

Are you looking for someone to provide drawings or just help you pick out finishes?

It may appraise for that based on development value. This is in a neighborhood zoned for MU or MX and based on the lot size and how many units can be built on it. If you can build 10-12 townhomes, then yes it may appraise but the appraisal needs to look at it based on redevelopment value. Otherwise, I think it's high