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All Forum Posts by: Chris M.

Chris M. has started 8 posts and replied 36 times.

Post: My first Development Project. Any advise?

Chris M.Posted
  • Owner / Investor
  • Nashville, TN
  • Posts 36
  • Votes 6


Originally posted by @Eric Teran:

@Aaron Farr and @Chris M. I don't know of any in the PNW. You will have to call a lot of places and see if they can do what you want. A few things to ask:

1. Most modular companies only like to deal with 11'-10, 13'-10 and 15'-10" modular widths. 15'-10" will cost more as they need a car in front of them with an oversize sign on them. Ask the company if they will do custom widths. Out of the 30 I called out here in the Mid-Atlantic only two of them said they would. 

2. Check out their website and look for the standard packages. The problem with modular is that they have lots of ugly base packages. Usually they will also have an upgrade package but it is still not that great. Of course you can do this on site as well but the key to saving money and time is getting as much of it done in the factory as possible!

3. Will they work with you to get a custom product. For example, I used Excel Homes and I wanted a free standing tub. They didn't have the one I wanted but they could get one pretty similar so we went with that. Same goes for the tile. They used Daltile so they told us pick anything from Daltile even if it is not in their packages and they should be able to get it. 

4. Usually each modular company has their team that they send to the site to set the house. However, they require you to go through a General Contractor. That GC already has an agreement with said modular company to do any of their work in their area. Sometimes a modular company might have two GC in the same area but not likely. That is a draw back if you like the modular company but no the GC. Of course the GC doesn't have to do the entire project and they might work with you for them to only do portions of the projects and then you can have your own GC do finishes. 

If I think of anything else I'll let this post know. 

Good Luck.

Great info!  thanks 

Post: Anyone have a Construction Gantt Chart?

Chris M.Posted
  • Owner / Investor
  • Nashville, TN
  • Posts 36
  • Votes 6

I have a basic one, but am looking for something more robust for both smaller project (duplex) as well as a apartment building 

Post: My first Development Project. Any advise?

Chris M.Posted
  • Owner / Investor
  • Nashville, TN
  • Posts 36
  • Votes 6
Originally posted by @Aaron Farr:

@Eric Teran this is some great info in regards to modular homes!  I appreciate the link and will definitely dig deeper. If you are aware of any good modular company in the Northwest, let me know!

 I like this option as well and have been digging deeper into it ... there seem to be quite a bit of modular builders in the PNW

Post: My first Development Project. Any advise?

Chris M.Posted
  • Owner / Investor
  • Nashville, TN
  • Posts 36
  • Votes 6
Originally posted by @Aaron Farr:

I purchased a brick rancher on 2.2 acres in a desirable part of Spokane, WA.  I'm in the process of getting the property subdivided.  It's been surveyed and so I'm about to submit everything to the county.  I had a preliminary meeting and it definitely qualifies for low-density housing and they didn't think there would be an issue with my plan.  Some details of my plan:

-Divide into 7 parcels.  One parcel will be the brick rancher which I will keep and sell at some point.  

-Paid 450K for the entire property and could easily sell the house for 350-400K even after it is parceled off.

-Build (6) duplexes on the other parcels giving me 12 units to rent.

-Duplexes will be one level ranchers 1200-1500 sq. ft per unit.

NEED ADVICE:  I'm considering making this a 55+ community.  It's in a great location for it and I am aware of other duplex communities like it that are completely filled with a waiting list.  They are getting $1800-2200 per unit!  

Is it a good idea to go this direction??  

Would you just go with standard stick built home or should I consider modular built homes?

I am going through the survey/subdivide/city processes now ...

Whats the time line on this for you in your area?  

Post: Thinking Too Small Killed My Deal!

Chris M.Posted
  • Owner / Investor
  • Nashville, TN
  • Posts 36
  • Votes 6
Originally posted by @Account Closed:

I am building 1 bed 1 bath 1 car garage duplexes in the mid-west--- already have a contract on two of them. And I just got turned down for a construction loan in the 9th hour for the loan amount being too small? 76k a duplex....
Has this ever happened to anyone? And if so- how did you get around it?

 I am looking into similar things with my latest deal (posted in this forum) ... keep us posted on how things turn out for you 

Post: Complicated Land & Rehab Deal ... Any advice appreciated

Chris M.Posted
  • Owner / Investor
  • Nashville, TN
  • Posts 36
  • Votes 6

So I purchased an older home with good bones in a hot area of Nashville. The house is a great rental opportunity, however, the real prize here is the side lot since land in this area is scarce and demand is high.

The trick here is that the lot is an "L" shape and I will need to petition the city to subdivide and replatt.  To further complicate this, there is a right of way adjacent to the "foot" of the L.  The city owns this small strip of land and my plan is to petition them to give up the ROW (common practice here) and that will give me an additional 15 ft of frontage and increase the building envelope.

I am going to attach a drone shot showing the aerial view.

My goal is to maximize returns and not to sell myself short.  

Notes:

  • I owe 85k on the home.  
  • Home SF is 1100
  • Home built in 1950
  • 3 bed/1bath w/ Large garage in rear
  • The home + lot as it sits was appraised at 250K
  • lots in this area that are duplex-eligible are going for 250K
  • New construction and rehabs sales going for 220/SF 
  • lots that are not duplex eligible / SFR are going for over 100K
  • it will take 50-70K to make this a really nice rehab
  • rentals here, this size go for 2000/mo 
  • AirBnB rentals will bring 3500/mo 

My question is which plan should I go with?

  1. Sell the whole thing without putting in any more money and move on to other deals?
  2. proceed with survey/petition/subdivide ...
  3. ... and if the subdivide goes well, do I sell off the land and pay the house off?
  4. ... do I keep both and build one or two units on the land? I could then have one, two, or three rentals potentially ...

I am estimating build costs for this land to be 125/sf

Would like to hear the other members take on this.