All Forum Posts by: Dustin Twiggs

@Jameson Sullivan, while I like your example... Starbucks might argue with you on that. 

I'm trying hard to get into the lake wenatchee area but prices are higher than what I can swing right now for what i want. 

Natalie,

If you're still following this thread... I have lived in Tacoma since Jan 2016. I have a loft down in the financial district that I wish I could rent (rental cap) and I bought that back in June of 2016. Back then I thought by summer of 2017 I'd buy at least 2 more homes on Hilltop as they were around $125-150k each. Then, BOOM the market exploded. However, I don't think Tacoma is done yet.

UW has completely cleaned up the area down by the Swiss. The Brewery district is going through a massive reno as well to the tune of around $85 million I think. There is a GIANT project from a Chinese investment company on Jefferson and 21st that has hundreds of millions being invested into new SFH and retail. It's supposed to end up being similar to U Village.

a new high rise hotel is going in, in the same neighborhood, 25+ stories I believe (Hilton? I can't remember). The crane is already up and moving. Just up a few blocks from there another crane is putting in a large multifamily unit. 

Hilltop is now more expensive by far than a year ago but the whole area is just now breaking ground on what we'll see over the next 5 years. 

the east side of I5 only a mile or two as the crow flies is probably the next major neighborhood as there is a clean up project there a well.

Lastly, I believe the City has yet ANOTHER major clean up project going in right next to the mall that will consume a couple city blocks, create a new greenbelt and park, etc.

Ruston condos are selling for $1m+, and Proctor homes seem to start around $450k for the most part. There is one right now listed at $275 that would be a renovation project.

Anyways, best of luck to you. I've been watching Tacoma closely and am thinking of selling my loft so I can move my money into the next investment opportunity as well. 

the neighbors are 50/50. some that have been there for a long time draw off the lake, but new builders have to draw wells and they've been going about $5k I'm told.

It may be for naught in this case though. After really brainstorming and reviewing the lot we are thinking of letting this one go. Its a super unique piece of land, but the steep grade is making it nearly unbuildable for us. with a little engineering work a person could definitely do it, but the work required isn't within our budget and would render the project out side of the ROI zone we're looking for at least in the near term).

ah, that makes sense to me.

as far as cost to build a new property, its going to vary so much from region to region. You could likely call local contractors, etc. to ask what an estimated current cost per square foot is in the region you're specifically interested in.  the most recent numbers I saw for where I want to build are $100-120/sq ft but that area seems inexpensive compared to where I live (Tacoma-Seattle) 

I'm struggling to understand that. My initial thoughts were the opposite, that if it costs more to buy than it does to build, then there is an inventory shortage.  If it costs less to buy, than to build... then there must be a glutton of inventory and no demand for new product.

Thanks Jim. The property is currently my primary residence. I've had it for about 13 months however I plan to rent it out in the future (maybe a 1 year+ down the road though)

I am hoping you guys can help me compose a list of items I need to research during my due diligence period here before I risk buying an unbuildable lot. 

The property is lake side with 100ft of shoreline. It's one of many (100+) that are built identically to it, 90% of them with cabins already placed. It is not in an HOA though.

It's next to sewer hook up

requires well, as new construction is no longer permitted to draw from the lake directly, I am told.

Utilities are to the properties on both sides.

one property shares an easement which does not look problematic at all.

The property is downward sloping towards the lake with some grade that will require excavation to build into, and likely a daylight basement, however almost every cabin on this lake has this setup so it doesn't appear to be an issue. 

I've covered here; Sewer, Electric, Water. I am thinking to verify the grading/excavation issue I will need to contact the county to learn of any offset issues etc.

are there any other items I could be missing? we want to buy the land and excavate a small portion for RV'ing that will later become the foundation for our cabin.

thanks! 

ah OK I know a small local bank that might be just the ticket then. thank you! 

When you google this there are so many options out there, I didn't want to apply, take a hard check hit on the credit, and end up with a weak LOC, I really wanted to get the most bang for my buck from the beginning.

Great info, thank you both for all of it! I had toyed with the idea of a balloon set up and your example is perfect. Regarding the attorney, I think I have one lined up that should be able to help assist with most of those details. The property is not currently built on but is a subdivided lot and I'll definitely do my due diligence in regards to suitability although as it stands right now it was designed to be. thank you for the feedback and concern!