All Forum Posts by: Doug Poff

Our group has acquired the land and permits for a medium (30-50 unit) apartment complex in the Chesterfield/Route 10 corridor.  Looking at a mix of Senior Living and Multi-family, as a completed usage report has identified a continued need.  Looking for local capital investors interested in participating.  

Tyler, if possible I would look for a Richmond real estate attorney if I were you.  They can do the negotiation, closing and often title insurance too (as least mine can - PM me for his info), all wrapped into one price.  At least with my lawyer, I have found that his prices for the total package tend to be just a bit more than what the titling insurance would cost anyway so it is a wash.

Second consideration is what others have said - depends on where you want to future invest; because another aspect to consider with a local property lawyer is the contacts they have. If they are active in the CRE (commercial real estate) market too - as many Richmond real estate lawyers are, they will have other banker, real estate agent, and possibly investor/mentor contacts to share - if you ask and define what you are looking for. But of course though, those recommendations will come with the usual disclaimers too.

I like Ed E.'s idea.  But would also add Farmer's Market.  Also, around here a lot of Schools rent out their cafeterias and gyms to growing or expanding churches - usually Sunday (naturally), and often Wednesday evenings - might be a good fit for a covered outdoor venue like this.

Check with the broker too if any local historic tax credits could apply to renovation costs.

Following.  I agree with @Linda Della Ripa, Chesterfield for SFRs is definitely worth a look.  

Following.  Commercial deals in Chesterfield, no residential/multi-family yet - but looking.  

Thanks guys, great advice!

@Deanna McCormickn, Wiring, ducts and conduits, plumbing stub outs and framing studs were in place, permitted, and inspected prior to his moving in (I had replaced the entire HVAC, ducts and hot water heater). Basically he threw up the sheet rock (and textured paint) and put in linoleum tile on the floors.  I had priced out a full finish beforehand, but the numbers did not work with what I could get in rent for the neighborhood, so had waived it off.

@Alex Craig.  Agreed.

@Bill S.  That's my game plan.  My rep out there (not my PM) has some rapport with the city, so I will see how it goes - worse case, they make my tenant pull it down.  I am pretty sure my tenant is a skilled 'laborer' with a licensed contractor.  

@Account Closed's advice on that.

@Jim Adrian, you seem to be reinforcing my own initial thoughts, 

@Eddie Memphis, thanks for the link - none of that was done, however, but it does add living space so I definitely think it requires permitting.

@Thomas S. solid advice and warning, great point about the liability - totally missed that.  

Thanks all - I'll definitely be setting the future rules out for both the PM and tenant, and in the meantime will get the work inspected to take out the liability issues.  

RESIDENTIAL rental newbie question: I have a solid B/B+ class SFR out in Denver in which the tenant came on in December. The tenant is a contractor who just moved to the metro area with his family. While working a utility issue with the PM and tenant, I was informed out of the blue by my property manager (who also had found and vetted the tenant) last week that the tenant had actually finished out the basement. Dry wall, textured paint.....the works. Electrical and plumbing were already installed as was insulation. We also have stub outs for a bathroom, though he did not finish that out - but did ask if we would like that done too.

To be clear, he did not ask for prior approval, nor is he asking for any compensation or consideration - unless we do the bathroom. He stressed to the PM that he finished it for his family's convenience and is NOT looking for any compensation or consideration.  However, he did provide pictures to the PM, and if accurate, the work actually looks quite well done.  

So my questions are:

1.  I am pretty sure he did not pull county permits, since as the owner I would have been notified - but am not sure if any of the work would have required permits since it was essentially only drywall and paint?  Any thoughts or experience? 

2.  I have a rep out there who could verify the actual quality of the work, but if I were to get it county permitted after the fact (if needed), and thus counted as new living space, will the tax go up? 

3.  What, if any, legal obligation do I encounter if he leaves after the year (or sooner) and decides to seek compensation?  Or, conversely, should I actually offer any consideration/compensation for his work now?  

Bottomline, I suspect that the legal thing is that I do not owe him anything since this was unapproved beforehand - but if it was done correctly, he may have realistically added about $15-20K value to the home, or about another $200/month rent potential in the future - so what is the RIGHT thing to do.  

4. Should I pursue getting it permitted - and add any tax increase pro-rated back into the rent? 

What am I missing?

or  should I just shut up and enjoy my good fortune that I have a tenant who actually might take care of the property better than I would myself?

What @Kurtis Fowler said.  Are you looking at the foreclosures, pre-auction lists out in the Saddle Rock/Southlands (80014/5) area of Aurora?  Might be higher entry prices than you are looking for if you are intent on full rehab properties, so not so good for flips, but definitely better rents if buying and holding when compared to other areas there.  Appreciation has been great over the last two years there as well most likely due to the E470 access.