All Forum Posts by: Mike Garrett

GET PERMITS! From my experience (as an architect, I have recovered many projects that have been "Red Tagged"), just going in and talking with the development office (try to get a building plans reviewer) and just talk them through what you want to do will get you in their "good graces". After being caught without the required permits, jurisdictions will make you jump through extraneous hoops (I have had to detail the common "P" traps in bathroom sinks). 

However while you are talking to the plans reviewer ask- 

What contractors can pull their own permits (called deferred submittals) electrical, mechanical, plumbing?

Is this a over the counter review? (this deals with the simplicity of the project- usually if there is no earth moving or structural changes then they can do an expedited review)

Can we do preliminary work prior to the permit (any demo or framing of walls)?

What does the inspection process look like?

Hey @Becky Y., while many of these contractors are super busy (they all seem to be) here are a few that I know are very good: C & S Renovations, LLC; Prestige Residential Construction; Sockeye Homes; and John Piazza Jr. Construction.

To get the best results try to give them very clear direction and desired results (I want a bed room and a bathroom are extremely vague). What are the square footage's, level of finishes (Corian vs. Engineered Stone, tile vs. laminate flooring, etc.), as well as a well defined schedule and budget. Having some kind of sketch that outlines all of this can be very helpful too!

Welcome @Aaron Kramer, good to have more investors in the PNW! Our housing needs are out of control!

@Sean Walton makes a good point. @Brandon Smart new construction has "soft costs" that existing buildings do not. These soft costs can run 10-15% of the construction costs (average construction costs for the area). The soft costs include all the design costs: architect, structural engineer, mechanical, electrical and plumbing for the building itself, but you will also need civil engineers who need surveys and geotechnical reports. 

These are not deal killers, but you need to be able to either find these consultants, or find a architect or civil engineer that can coordinate a good team.

Also check with the local permitting jurisdiction to make sure that the zoning will allow the development.

The main issue that I see is that new construction is built for owner occupied, and (generally) rentals have lesser quality materials due to the higher amount wear and tear assumed from renters. However there are way to avoid this extra wear and tear- through good screening, or a lease option. I would also consider the market in a few years when you are thinking of renting it. Will the area still support such a high rent? 

Also, don't forget to add the maintenance into your rent before you start counting your profit. will there not be as much maintenance with new construction?

Hey @LaTara G.,

I am absolutely biased! Get an architect. New development is complicated. Whether you have stock plan (off the internet for a price) or want them designed doesn't really matter, they have to conform to code. You will need civil engineering to deal with the slopes, drainage and grading of the land; a structural engineer to make sure that it can resist lateral (earthquake and wind) loads; and the architect will make sure that it complies to the local residential building code (as well as coordinate all the other engineers). They can also give you a good idea about construction costs (in Seattle we cant built a home for less than $150/s.f. right now).

Here is what I would do- print out a picture of the floor plan you like, look up 3-4 different architecture firms in your area and call them up (make sure you ask if they do residential, many focus on commercial), make an appointment and bring the floor plan, make a list of questions that you have for them (see list below), take dubious notes and have them all give you a proposal. The key here is to find an architect that you connect with, do not focus only on price. The relationship between you and the architect is more important than the fees, because the value that the architect provides (great relationships with permitting office, competent staff, availability to get started, clarity in communication,etc) is much more valuable than drawings lines on paper. Also remember that you are going to require a bit of hand holding because this is your first time (the architects will know this whether you disclose it or not), but stress that if the team (your development team) can make it a great experience then you plan to build more.

Possible questions

Can you help me find the right property? (many architects help clients find and analyze land)

What kinds of preliminary investigation report do you need to begin design: geotechnical report, wetland biologist report, ALTA survey, title report, etc?

What does the design process look like in your office? (we all have the following phases: schematic design, design development, construction documents- you want to know timelines and deliverables)

Do you engage with contractors to provide preliminary construction estimates to you designs? At what phases? (you want the first one after the schematic phase- granted it is super rough, but you will know if you are in the cost per square foot ballpark)

What process do you usually use to find a contractor for a project like this? (architects call this phase procurement or bidding and negotiation)

What is the biggest value that your firm brings to my project?

Do you currently have the capacity to take on a project like this?

Will you put together a proposal that outlines what you provide in each phase, the deliverables, and the cost per phase as well as a total for the project?

@Devlin Quarles, I agree with a lot of this. What you have is very simply a mental block. Through the research you have done you know how to find deals, estimate repairs, find comparables, and negotiate deals. The problem you have is thinking that you don't have the money to make the deal happen or that you won't find an investor to buy the deal (a feeling that you would do the math wrong and the deal really wouldn't pencil out). 

Go out and find deals! Run the numbers on 40-50 deals that you see (try to stay off the MLS, those don't pencil right now). Find the run down houses in your neighborhood and run the numbers. This will build your confidence. When you have a great deal you will find the money to make it work. -Also read Mindset by Carol Dweck.

ADU's are a great way to add value. Make sure your zoning will allow it and that you have the space on the lot. You can build an attached structure (looked at as an addition) or a detached structure (seemingly more desirable by tenants). Either way, get a architect or real estate attorney (someone very familiar with the local zoning codes) to give you advice. Most architects will do the research and a site visit for $500, and can save you time and energy.

Hey Stephen,

I agree with Brian in many aspects. The truth is that building is very complicated, but you can find the zoning maps on the cities website and simply Google "(city) Municipal Code" and look at the "zoning" section. However, the building needs to meet the International Residential Code, the energy code, and be permitted through the city (Planning, building, fire, Civil, etc.). I am absolutely biased, but hire an architect. I am happy to help you navigate these waters to make sure the project is feasible. just send me a message.

Generally, as architects, we have a few options to estimate project costs. One is "our best guess" in which we can remove some finish items and cost only items that are necessary for what the city needs to inspect; the ICC Building Valuation form is the second way (this is online, see link below) in which you multiply the building square footage by the valuation on the form based on type of construction (described in the IBC most houses are V-B); and lastly a estimate from a contractor, my preferred method for renovation projects. So in short- No these are not actual construction costs.

https://www.iccsafe.org/codes-tech-support/codes/c...