All Forum Posts by: Patrick Orefice

@Jacob D Adamczak

Always worth asking some contractors. I’m seeing new builds right now around $400/sq ft plus land and soft costs. Renovation makes sense at $200/ft, but to go higher would be all new roof and framing and ceiling/new floor framing to add to it.

Some of the higher priced areas (Windermere and the Old Village) it may make sense cause the return could be good. Mid to lower priced areas ($500k and below) I think it would be very tough to make it work. Anything is good if the numbers work, just make sure the numbers are right.

The duplex idea is interesting but make sure zoning will allow for it.

@Jacob D Adamczak

Way to get creative! Prices really start to escalate doing the “pop top” so you really have to find a pretty good deal to make it work. Numbers are so tight here right now that will be very difficult.

Like you said, most of the new builds around are already 2 stories and probably can’t go higher per zoning. With the older homes, it’s doable and would need to involve a structural engineer to reevaluate wind and earthquake loads as well as framing and foundation of existing components. Having to bring the entire house up to current building codes can be cumbersome and very expensive (which may likely need to happen). Probably only worth it if you’re already looking to gut the whole house to start.

This is my experience in the Charleston area. Not saying it can’t work well in other markets.

@Jonah Kolsrud

We see them both quite a bit here. Garage conversion are a little more difficult because of the cost and ADU restrictions (increasingly more strict because of STRs). Flood zones vary greatly so it's just about finding the right property. Much of Charleston is in a flood zone but not all. Conversely much of North Charleston is not.

Attic conversion definitely happen, but construction costs are escalating so the numbers often don’t work. I looked at one recently for one of my properties but it just didn’t make sense for me. With a lot of older homes here, there is a lot of attic space to use. Tight floor plans can sometimes make it difficult to place stairs.

@Jonah Kolsrud

I like the strategy, and it would be worth getting an architect involved when you find a property if you decide to go this route.

For an attic you may run into issues with required ceiling heights and locations to add stairs. You’ll also need to provide a window if adding a new bedroom. Someone will need to verify the structural capabilities of the existing ceiling joists.

For a garage convert your biggest issues may be flood zones, getting utilities to the garage and the local ADU requirements which vary by city or town.

@Shayla Collins

Most flippers know pretty well what their building costs will be, but with new builds it adds in a greater site cost and soft costs.

Zoning can be issue as already mentioned here, but you also need to look into city fees. There are fees for water and sewer taps into the city’s utilities or increased costs for well/septic. You’ll also have to provide the infrastructure from the meter to the house. Often grading comes in to play and costs for paving/driveway.

You’ll also need to look at hiring an architect and structural engineer. Jurisdictions require stamped drawing for permitting. Because of this the holding time can be much longer before construction begins.

Not trying to scare you away, and as long as all the numbers work new builds can be very profitable.

@Victoria Mason I’m not very familiar with the specific areas of Greenville. I know it’s a great market with a lot of growth, but like any area, some neighborhoods may be better than others. If recommend finding an investor agent and/or talking with a few property managers.

@Kevin Reid

If going septic, be sure you have enough space on the property for 2 or 3 units. The state may be able to help during the permit process, but if a designer is needed, they are usually very costly as it’s a super specialized commodity now. Just make sure you’re factoring contingencies into your numbers.

@Ron Turner

The larger markets in SC are all pretty hot right now: Charleston, Columbia and Greenville. In the Charleston area the STR laws are pretty strict in most municipalities so be sure you're allowed to do it, if you're looking to go that way.

Not sure how I didn’t see this thread earlier. Architect in Charleston, SC. Originally licensed in Colorado. Glad to see so many others out there.

I used to do large commercial, educational and healthcare work, but got bit by the REI big a few years ago. 60-70 hour weeks didn't leave a lot of free time, so I opened up my own office and focus on residential and small commercial now. Gives me a lot more time to work on both my businesses.

Definitely in agreement here that we have a skill set that lends well to investing. I like seeing you all here, and hope more architects get into it.

@James Colgan

The entire Charleston area, too, has very strict laws and limitations for STRs. Right now the Park Circle area of North Charleston is a good place with no real laws set up (though always being talked about and could change). If you’re looking here, contact @Troy Gandee. He stays up to date with it, especially in that area.