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All Forum Posts by: Eric Teran

Eric Teran has started 8 posts and replied 301 times.

Post: Underpinning in Baltimore

Eric TeranPosted
  • Architect
  • Alexandria, VA
  • Posts 312
  • Votes 363

I’m hoping a Baltimore developer can help me out on this one. I’m an Architect and I am designing a house for a client that is a full gut rehab. We have to do underpinning. I mainly work in DC and NOVA and when we do underpinning we have a third party inspector during construction. However, in Baltimore the building reviewer has told me that the structural engineer of record has to provide the site observation and reports. They do not accept a third party report. The structural engineer that prepared these plans lives near Dulles and does not want to drive to Baltimore multiple times.

Questions:

1. Is this true?

2. If it is true does anyone have a structural engineer near Baltimore?

3. If this is not true does anyone have a third party inspector that does work in Baltimore for underpinning?

I appreciate the help.

Post: Know a Good CPA in the DMV area?

Eric TeranPosted
  • Architect
  • Alexandria, VA
  • Posts 312
  • Votes 363

@Kevin Franklin I use Jason Osser out of Fairfax who is a CPA and does offer tax strategies. I have some properties in South America and he has been able to help me. He has also been a lot of help with my PPP Loan I obtained for my company. Here is his website, https://ossercpa.com

Post: Best prefab and modular construction lenders?

Eric TeranPosted
  • Architect
  • Alexandria, VA
  • Posts 312
  • Votes 363

@Eric Veronica do you lend in Virginia? I have a client whom I am designing a modular home and he has been shopping around for loans. The construction will be around $900k to $1 million. He already owns the land.  

Post: Best prefab and modular construction lenders?

Eric TeranPosted
  • Architect
  • Alexandria, VA
  • Posts 312
  • Votes 363

@Michael Frank I found a construction to permanent loan so there was only one closing cost. The other bank I found was Union Bank and I can't remember the third. I think some of the other ones offered only construction and then a new loan had to be done for a permanent loan. The LTV range was from 60% to 90%. Bank of Charles Town gave me 90% and one time closing which is why I choose them.

Post: Best prefab and modular construction lenders?

Eric TeranPosted
  • Architect
  • Alexandria, VA
  • Posts 312
  • Votes 363

@Michael Frank I live in Northern Virginia and built my prefab home in 2017. I called almost 30 banks. Big and small. Local and National. Only three were willing to work with me and they were all local small banks. The bank I choose was Bank of Charles Town. They understood the draw process of a prefab home.

However, on the day the home (4 boxes) were delivered the bank would not wire the money until the boxes were set on the foundation and the prefab company wouldn’t put the boxes on the foundation until the funds were wired. it was a catch 22. Luckily we worked this out before hand and someone was at the bank in the early hours with me on the phone. When the first box was lifted off the trail the wire was sent with a proof of transfer sent to the email of the prefab company.

When I do another prefab house I would also look into hard money if there are no banks. A prefab homes is built in 2-4 months so the holding costs should be too painful.

Post: Looking to Upgrade Single Family Investment in Washington DC

Eric TeranPosted
  • Architect
  • Alexandria, VA
  • Posts 312
  • Votes 363

@Maurice Matthews @Russell Brazil

an RF-1 zone does not allow ADU. ADU are only allowed in R zones. You will have to separate the basement as it's own unit. I've seen my clients charged between $125k to $175k to do this. It depends on what you have to do.

Here is a brief list of what a new unit needs: fire sprinklers, own heating/cooling, own electric meter/panel, own water heater, entry access, fire proofing between units in the ceiling and/or walls, sound proofing (50 STC min.) bedroom egress, daylight, no interior access to the upper unit, 7’ ceiling heights, and a few other items. These are all required.

Other items that you may need that will significantly drive up cost is if the existing size of the water meter and lateral lines has to be enlarge, the existing footing/foundation, lead removal for homes built before 1978, and other items.

Also, RF-1 zone by right only allow 2 units. This changed in 2015. If you want 3 units you have to go through the BZA. If the neighbor has 3 that may help. Especially if they were permitted after 2015. Your ANC support is also good to have.

One more thing, if you want to add a third story do it now while you are doing the basement or at least have an engineer determine if the existing foundation is adequate to support an additional floor. The third floor will have to conform to the 60% lot occupancy rule. 62% is allowed if a letter is obtained from the head zoning administrator. Anything between 62% to 70% requires a special exception from the BZA. If you are in a historic district there are also requirements for the third floor visibility from public space such as a street or alley.

Lots of information but all doable. Good luck.

Post: Looking to Upgrade Single Family Investment in Washington DC

Eric TeranPosted
  • Architect
  • Alexandria, VA
  • Posts 312
  • Votes 363

@Maurice Matthews what zone is your property located? That will tell you what you can do by right. Anything more and you will have to apply for a special exception or variance with the BZA (board of zoning appeals).

Post: House Hack in DC. Options?

Eric TeranPosted
  • Architect
  • Alexandria, VA
  • Posts 312
  • Votes 363

@Jeremy D. you want to look at RF (residential flats) or RA (residential apartments) zones. R-1 zone is for single-family housing and they only allow ADU. Each RF and RA zone will have different requirements. The most common is RF-1 which is zoned for two units by right. Any more and you need to go through BZA.

When an owner separates a single-family residence into a two-dwelling flat they are now a multi-family residence. However, they do not need to be converted to condos. If the owner ever wants to sell one of the units and keep one for themselves or sell both units separately then they have to follow the condo conversion process. Keep in mind if you decide to rent a unit before a condo conversion you then have to either wait for the unit to be vacant or file a form that informs the tenant because in DC tenants have rights. 

In regards to the ADU it can always stay an ADU but when you sell the house the ADU is sold with it. It is always part of the house and under the same title. An ADU allows one owner to own the lot/house and rent the ADU if desired. The ADU doesn't have to be converted back to the original space. The new owners can keep it as an ADU or convert it back to be used for the main house. An ADU can never be a separate dwelling unit. That is the big difference.

Post: House Hack in DC. Options?

Eric TeranPosted
  • Architect
  • Alexandria, VA
  • Posts 312
  • Votes 363

@Jeremy D. To add what @Andrew Spell mentioned if you want to separate a home into two units you need to find an RF-1 zoned lot which allows this by right. This is the most common zone to do this in DC. Other zones are along major streets where they allow higher density. If you want to add more than two units in a RF-1 zone you can go through the BZA (board of zoning appeal) and ask for three or more units and file for a special exception. This petition may be denied and takes around 4-6 months to complete.

There are a few big difference with an ADU and converting a single family house into two dwelling units. Here are a few.

1. ADU is under the same owner. If you sell the house the ADU is included.

2. ADU is on the same utilities as the main portion of the house.

3. An ADU can only be 35% of the main house. There is also a max SF but I don't remember it. I think it is 700 SF.

4. Two dwellings allow it to be legally separated into two distinct homes. Each homes requires their own utilities and fire proofing between units.

5. The new unit will need fire sprinklers. Unless you do a third story pop up which will then make the existing floors require fire spot Klerk as well.

6. Both units can be the same size.

7. The two dwellings can go through the process of a condo conversion and is expensive and a lengthy process. People do this so that they can rent out both units or even sell one or both. Most of my developer clients do this.

8. Creating two units is expensive and usually costs around $125k - $185k. There are many factors but this is what I see for my clients.

To easily find a property and their zoning information go to https://propertyquest.dc.gov/. Type in the address and you will get a lot of information.

If you want more in-depth information about a property you can go to https://scout.dcra.dc.gov/login

You can also find a list of vacant and blighted homes. Go to the DCRA website and search for it. They put out the list every quarter and you might be able to find some deals because those owners are paying an arm and leg in taxes once the property is classified with those distinctions. However, these homes require a lot of work. I walked through a blighted house last week and my foot fell through the floor.

Good luck.

Post: My contractor has blown throw the allocated budget

Eric TeranPosted
  • Architect
  • Alexandria, VA
  • Posts 312
  • Votes 363

@Nwakaego Onike to answer two more of your questions.

1. You can make the contractor remove something that they are billing you but don’t have proof it was done. If it wasn’t done then they have to pay to do it properly and fix any work that was damaged. If it was done then you have to pay the contractor to fix the area they removed to prove it was done correctly.

2. There are no real books or programs to help a beginner on pricing. Construction costs are very local. Here in DC in two neighborhoods separated by a river and five miles two clients received bids for areaway stairs within two weeks of each other. One was for $80k and the other for $35k. They were exactly the same thing. I drew up the plans. The only difference was the neighborhood. The best solution. Is to obtain at least three bids. Usually, at least two will be similar so it is better to choose one of them. If one is $50k lower than the other two then they are missing something. If one is $50k more than the other two then they are busy and don’t really need your work and don’t mind increasing a bid.

3. Staying within in your budget is accomplished before construction begins. I mean that everything should be picked out and specified in the plans for the contractor to provide an exact bid. Even doorstops. Everything. Of course surprises happen when doing a remodel like the electrical wires being chewed up by a rat and it all has to be replaced. However, items that can be seen should not have price increases.