All Forum Posts by: Eric Teran

@Jay Hinrichs as an Architect in my day job I found this statement interesting. Here in DC where most of my clients are based the city has recently updated to the 2017 IBC (international building code). Most places are a few years behind because they then add amendments to the IBC. Anyway, the 2017 compared to the 2015 has much stricter energy and building codes. For example, lighting efficiency must now be 85% LED compared to 75%. The Structural bracing, lateral loads, snow drift, etc. require a higher safety factors. Insulation must now be at least R5 continuous plus R19 between the studs. This will vary depending on the climate region but the point is the new code is a lot stricter on energy and building compliance.

All these upgrades that are now required will add cost to the construction budget. Right now it is required and not a choice for any work requiring a permit. Will the government help homeowners or investors cover the difference when they are looking to renovate?

The Weatherization Assistances Program (WAP) was created in 1976 (thanks Wikipedia) and they have been helping low income families weatherize. Will this potential new plan help real estate investors as well? How about a flipper?

I’m all for this but I know it is going add more to the construction budget and make it difficult on some people. One day we will all be living in a Passive House.

@Chi Ta I’m an Architect and what I do for my developer clients if they want to take the risk is to start the plans as soon as their offer is accepted. They ask for a longer closing period around 2-4 months. During that time we have permission to submit plans and get a permit. The risk is if my client backs out of the deal because they still pay my fees and other consultants. The gain is four months and less holding costs. That’s the legal way.

The riskier way is start the work and hope to get a permit before you call the first inspector. However, a neighbor can call and you will get a stop work order which are expensive.

Another option is you get a demo permit first to start the work and that is pretty straightforward. Unless you demo the entire structure. Another type of permit is non-structural and those are easy to obtain in a few days.

These developers have being doing for a while so they have their system down so much so that they don’t even have to speak to their architect and waste time making decisions. I have two clients like that. I also have first time developers that can’t make up their mind and the project just takes longer to design and submit.

I Hope that helps.

@Bob Fu are you planning on making the basement a separate unit with a kitchen? If you want a separate unit then you do have to separate the mechanical, electrical, and hot water. That will cost much more than $40k. There is are a lot more questions if this is the route. If you just want a basement door for egress it sounds pretty straight forward from what you are describing. You may need to do some underpinning un the porch columns but everything else will be straight forward.

Send me a PM and we can go through both scenarios in more detail.

@Bob Fu I’ve designed a lot of these for my clients. Here are a few question that will help determine cost. Are you only looking to do an areaway and nothing on the inside? If you are adding a door how does it work with the basement layout? Is there an existing window that will convert to a door or just a wall? Is the front of your property part of public space? How deep is it from grade to the basement floor? Do you have to move any utilities? Is there a porch that is in the way?

With all that said I agree with @Russell Brazil that the low end is around $20k but I can see the high end being around $40k or more. It just depends on your answers to all those questions.

@Mauricio Osorio, @Mark Caudill, @Raisa Rodriguez, @Frank Edwards, @Federico Morales I figured I would tag all of you in case you want to register for their webinar. They will be holding a few of them for the next few weeks. I signed up for tomorrow.

https://register.gotowebinar.com/rt/8411220377670097931?fbclid=IwAR0XlQDXe1F7RsukiYrXYlON4FliIk1QPe_Y0Ko7aQNvhVojrhCZBIAD45A

Should be interesting.

@Jacob LeFebvre rock wool and adding an extra layer of drywall help. However, to get the best result you have to separate the vibration. This is done by installing clips under the floor joists. I’ve used Genie Clips. The clips have a rubber pad on the joists side and the other a space for a hat channel. The drywall is then attached to the hat channel. The rubber piece stops the vibration. At the edge of the ceiling and walls leave a small space and fill it in with expandable sealant. The trick is to separate the vibration.

This is your best solution but most expensive. Then rock wool and then drywall. If you do all three then you will be golden.

@Chris Musano I just realized you said a duplex or triplex. In some areas you don’t need an Architect until it is more than four units. In theory you could do the design yourself or maybe find a design-build firm. There or pros and cons to using a design-build firm. Just make sure that they are using someone competent to draw the plans.

@Chris Musano I think you are putting the cart before the horse. For a multi family project there is a lot that goes on and a builder will not give you a price without plans. They have no idea what needs to be built, the design, level of finishes, utilities, etc.

If zoning is okay the next step is to find an Architect as most municipalities will require one for multi family. If you can find one with this type of experience it will be better. They will know some contractors. During the design process a contractor may be brought in to provide rough estimates to make sure the project is within budget.

Good luck.

@Benjamin A Ersing I used to go every two years to see my grandparents in Ecuador who lived two blocks away from Estadio Olimpico. Both condos are in Quito. One is a block from el Parque Carolina and the other is a block from Parque Itchimbia with an amazing view to the historic center. In the condo near el Parque Carolina we get more visitors from other parts of Ecuador and Souther America who do business, school, or trips to visit family. The other condo is much more for tourists from other countries. Until COVID hit we were cash flowing about $400 a month. Now both condo boards put new rules that we can only rent for a minimum of one month. We have one place rented for the next year but the other is vacant. 

I do agree with @Account Closed about appreciation and currencies. Luckily, Ecuador uses the American Dollar so we are fine there. However, the appreciation is not as great and there is always risk of the government not being stable. Our Ecuador properties mainly rent on Airbnb so all the money we make is deposited in an American bank account. We do not have to move any money across borders. Once we sell the properties then that money will stay in Ecuadorian investments because the taxes to move currencies of that amount is around 40% to 50%. Actually, in the next year or two, both condos will be paid 100% and we are planning on leveraging them to buy an additional three to five units. 

At this point, any money we make in our daily jobs and our basement Airbnb we plan to use for investments in the DC region.

I know my area in Northern Virginia does not classify my home as a modular home. The city only cares about the size and how much to tax me. The appraisers only want to know how many bedrooms, bathrooms, fireplaces, and if there is a finished basement. I don't know what each municipality or state requires but the only time it was known that the house was modular was when I submitted the plans to the city to get a building permit. Also, the day it was delivered and installed in a day. If you look at my house there is no way to tell it is modular. As @John Teachout mentions there are some features that show it may be modular but you have to know what you are looking for. There also has to be access to see it. My basement is finished and my mating walls only look like thicker walls. 

I wouldn't worry about it being appraised for a different value. Build a house that is suitable for the area and it will appraise accordingly. My house has.