All Forum Posts by: Eric Teran

@Jinglei Cui I was able to build my place on a vacant lot for $130 SF. However, I was the Architect and acted as the GC. Without that, I would have been around $200 SF. That was all in. Only the modular was around $90 SF. I think modular makes sense in expensive markets. If labor is cheap then the cost savings will not be that much if any. The company I used is in Pennsylvania so you will have to find someone a lot closer. I believe Vancouver has some modular companies as well. You need find a company close to you or you will pay more for traveling. Try to find one less than a day drive away, so probably 6 or 8 hours. Any trip longer than that will result in you paying for hotel rooms for multiple people. 

@David Edwards good to have a tag team partner. 

@Jennifer T. Another Architect weighing in. I think it depends on how big your project is. If you are only doing cosmetic work then you can do it yourself or work with an interior designer. If you do it yourself pick out everything you want before construction begins so that the cost doesn’t go up during construction. More information at the beginning will always save you money at the end.

If you are moving around a bathroom or a non-load bearing wall then if you are an experienced flipper you will probably be okay. If it is your first time I would maybe be on the cautious side and hire an architect.

If you are doing an addition then I would go with an architect and maybe even a design build firm (if they have a good reputation). Sometimes a jurisdiction will require an architect once an addition is being done so you may not have an option.

Good luck.

@Quinton Campbell in regards to zoning you can use this link, https://ca.baltimorecity.gov/codes/Art%2032%20-%20Zoning.pdf and go to page 193. That is the section it starts to talk about R8 zoning. On many small projects I agree with @Greg Dickerson that you can call the city and ask about zoning. On bigger projects like this I would suggest to have an Architect take a second look. The Architect should do it for free or charge a few hundreds dollars at most.

A lot of times the people at the city only give you yes or no answers. If you don’t ask the right question you may not get the right answer. Before I start any project I do my own investigation to make sure a client can build what they want. For me it usually takes 10-15 minutes at most so I don’t charge. I once had a client who didn’t realize a property they bought had a bird corridor easement and they lost 30% of their property.

If you go to the city ask these zoning questions:

1. Setback requirements?

2. Height limit or story limit above grade?

3. Lot occupancy for new buildings. This percentage is usually a hard number unlike an existing building asking for an addition to go over with an exception?

4. Open space requirements?

5. Green area ratio?

6. What is consider a basement so that I doesn’t count towards your story limit?

7. Any review board hearings?

8. Any sight line requirements?

9. Any FAR requirements?

10. Parking requirements?

11. Any requirements to match adjacent rear of buildings? For example can you extend 10’ past your neighbors rear wall.

12. If you want to get an exception or variance what is the process. For new construction I highly advise against this because you can’t show hardship which is a big requirement and neighbors can and will show up.

13. Any neighbor notification letters required?

14. If your property doesn’t extend to the street and you will have to build stairs or retaining walls in public space what are those requirements?

Building department questions:

1. Storm water requirements. With new construction you may have to have all the rain water connect directly to the storm drain?

2. Water meter and lateral requirements?

3. You mentioned prefab so ask if modular construction is allowed? Most likely yes but if you go this route ask a modular company if they can drive their flatbed trucks to your property?

4. Utilities, do they have to be underground?

5. If there is no sidewalk or curbs do you have to build them? Do you have to put up a bond until they are complete?

Whoever you speak to always ask, “are you sure there is lo thing else I need to investigate?” Also, look at you deed for any easements. Sometimes the city will not have these. For example, there might be a road easement that access a lot.

These are all the big questions. Most likely the majority of these will not pertain to this project but I always ask as much as I can because you never know.

Good Luck

@Josiah Keener was the $65k just for the lowering of the slab? My clients are paying between $100k to $140k depending what the scope of work is. The higher end is when they convert the basement to a separate unit and all the utilities are divided. DC is expensive right now and no one is hurting for work so they can charge more.

@Christopher Currall there is a slab and a footing. The architect probably made you work on the footing which is the structure. Especially if you are adding a second floor. The slab is not structural. It is Usually only 4” or 5” thick. A crack is most likely not a big deal.

With that said an inspector may ask for additional items from the approved plans. If they asks for anything it will probably be for verification that an item is acceptable. For example, they may ask to prove that the crack does not interfere with the structural integrity of the footing. The Architect May draw a detail, provide calculations, or write a letter that everything is fine. That will be submitted to the city and kept on file.

I wouldn’t be too worried about. Just make sure you, your contractor and Architect know what is going on.

Good luck.

@Jinglei Cui this topic has been coming up a lot recently on BP. I built my own modular house and have designed a few. They definitely save time and money depends on a few factors.

The biggest thing to do is to start your design with the modular requirements. The goal is to get the design to work with the least amount of boxes that have to be transported. This will save lots of money.

The next thing is to get as much of it as possible built in the factory. The problem is that the majority of companies have ugly finishes or will not do anything custom.

These two factors are the biggest in saving money and time. I built my house in 4 months and I know I can get it down to two months next time. Everything goes much quicker so you need to have a lot of money up front.

Resale value. I believe it is the same. It depends more on the design and aesthetics of the house. If a buyer sees a beautiful well kept home they do not care if it is modular, built with 2x4 or with masonry. No one can tell if a house is modular unless they are told. Others on BP don’t agree with me and it may depend on the region.

Loans are more complicated because a lot of banks don’t deal with them. You can find them but you will have to do lots of calling. I had to call over 30 banks. The issue is that the loan is normally disbursed after certain milestone throughout 8-12 months of a project. With modular it is basically three withdrawals within 3-4 months. One for site work, one huge withdrawal when the modular units are delivered, and the last one at final completion.

Lastly, if you like modular construction check out Superior Walks for basements. I used them as well for my house and they installed 156’ linear feet of wall in 3 hours.

I believe in modular construction if done correctly and there is a lot to know to make it work to your advantage.

Good luck.

@Rachan Malhotra for DC you can go to www.propertyquest.dc.gov and www.pivs.dcra.dc.gov. You can also go to the city tax assessor website and find out more information there. With that said I don’t know if it list the next of kin if the property has never been officially transferred over.

DC does not like these houses that are left vacant. If it is considered blighted they want these turned around quickly. I would call The tax assessor office and tell them that you are interested in purchasing the property. They may help you.

@Rachan Malhotra be persistent. There are a lot of properties like this in DC but developers usually get there first. I am sure these people have received some sort of yellow letter to sell the house but don’t let that stop you.

Do what @Greg Dickerson suggested. If you find out there location I would even swing by and knock on their door.

I lost out on a property down the street from me by not being persistent. I wrote two letters in a year and the owners lived a mile from me. I thought about knocking on their door and never did. About a year after I first saw the property they put it up for sale and by then it was over my budget to make my numbers work.

Good luck.

@Christopher Cammiso part two of my response. You will have to get a loan only for the lot. Banks consider these risky investments because there is nothing of value on the lot. There are not a lot of banks that do these.

Once you pull a permit you can get a construction to permanent loan. These are more available and you can shop around. Most likely you land loan will be rolled into the construction to permanent loan. The down payment on the land counts towards the down payment of the construction loan. These loans are usually 80% LTV but you can find 90% LTV. Try local banks first and call around. I called over 30 banks before I finally found one when I built my house.

@Christopher Cammiso I would do a lot more research on what may be built. I once found a great vacant lot in front of a river but found out it need the counties approval even though it was a build able lot. I called all the council members and three of them gave me a flat out no. I then had a neighborhood meeting and out of the 20 people that showed up 18 opposed my idea. Long story short if it requires public approval you are in for a fight.

Trying to get multiple variances is very complicated and time consuming. Variances allow for public opinion and if you do not have the neighbors, planning/zoning departments, and local politician supporting you then you have an uphill battle.

Have you figured out all the setbacks, lot occupancy, green area ratio, FAR, easements, etc.? I guess the variances may resolve some of these issues but there might be one you overlook. For example, if it borders a Greenbelt a setback might be bigger than a normal setback.

If this property is in Long Beach I think your construction cost is low. Especially if you have to install all the utilities.

I don’t want to be the one given you bad news but I have tried similar projects and I’m an Architect with 20 years of experience.

This is what I suggest you do.

1. find out who would be voting on this variance and call them to get a feeling for their thoughts on these types of developments.

2. Find out if there are neighborhood meetings and go to one explaining your intent. You want to know if they will support you. Always keep them in the loop.

3. Make an offer with it being contingent on you getting a building permit. Ask for a year to go through the process.

4. The seller will not like this idea but you can offer him something called, “right to first refusal.” I think that is what it is called. Let’s say you offer him $60k and need a year to pull the permit. The property can remain on the market and If someone within that time offers them $80k you can match that price and continue your process or he can sell it to that party. I know two developers that have done this successfully. There might be more to it though.

This scenario may cost you money but you won’t have a completely useless property if you can’t pull the permit with all the variances.

Good luck.