All Forum Posts by: Patrick Orefice

Hi Kyle,

The local building department should have the plans on file.  Depending on the age of the house they may be hard copies, microfiche or electronic files.  Some building departments let you access the plans for free, some charge printing fees and some charge access/subscription fees.  Just contact the building departments in towns you have properties and they should be able to tell you how to do it.

If, for some reason, no plans are available, there are people who do can draw you the plan/elevations for a small fee.

@Jon Q.

I don't have much experience with my own financial stake.  I've designed a few facilities so my knowledge on finances come from the owners/clients I've worked with.  As @Dave Reese mentioned, the business side is very profitable, but there are many headaches that come along with it.

I haven't come across anyone renting/leasing the space from a separate building owner. I think they like to own the building because of all the other licensure hoops to jump through.  But I'm sure someone is doing it.

Wish I could give you more specifics on how to do it.

Hi @Jon Q.  Are the properties you are talking about typical residences?

Things that would likely come into play are:

1. Zoning requirements.  Is the property currently zoned within your local jurisdiction for assisted living.

2. Licenses.  Assisted living licenses can be a big headache with state regulations that need to be met.

3. Building codes.  Converting a residence to assisted living will change the building code you have to abide by.  It will also kick in the need to follow all ADA (Americans with Disabilities Act) Guidelines.

Assisted Living facilities can be great for cash flow, but it's definitely not a simple conversion of who you rent to.  The biggest item would be the State and Federal licenses that you would need to run the facility.

As @Sean Pincus said, local zoning will be the biggest hurdle.  Depending on what the zoning ordinances are, a variance may not be attainable.  A quick sit down with your local zoning department should clarify what you can and/or need to do.

It's great that you'll be able to get construction within the family.  There will definitely be some things with utilities and the city that will pop up in converting to multi-family.  More research with your local utility companies and building department should shed light on some of those.

I like the way you're thinking about this, just be sure to have your ducks in a row!

@Kim Ford I'm not currently in the Columbia area.  I'm just getting started and focusing locally.  What do you think of the Columbia market? 

Hello Everyone!

I'm in Charleston and starting out. Looking to flip and BRRRR. Currently looking at some deals and trying to figure out creative financing.

I recommend talking to some lenders in your area and see what they will do for you. I looked at buying a condo recently as a primary and couldn't find a lower down payment than 10%. Condos can be a different animal than SFR and the financing works differently.

As an example of the unknowns and reserves: I recently bought a new primary residence (SFR). Inspection and closing all went smoothly but two weeks after moving in my shower backed up with sewage, and I needed to replace the entire waste line in the yard unexpectedly. Cost $3500 to fix. Things happen.

It's great that you're thinking about all this now @Account Closed that waiting is a good option for you right now to build up some reserves.  Something always comes up.

Short term rentals can be great for cash flow, but there are some things to think about:  Does your area have a market for it; do your local laws allow it; the cost to furnish it (you mentioned your parents would be willing to help, but this is a very large up front cost with furniture, artwork, sheets, silverware/dishware, etc.); your availability (meeting with tenants, exchanging keys, cleaning and maintenance after each stay). 

Hi @David Hall,

Welcome to BP. The site has a lot of great content and the podcasts are fantastic.  There is a lot of information.  My wife and I are in a similar situation to you and on a similar timeline.  Oklahoma has been a great market the last few years.  I've thought about investing there as well.

I'm approaching this in a little different way than what your question is, but would appreciate a little more info.

Is the existing interior space set up as a pub currently or is it completely gutted, i.e. will a new bar area need to be designed?  Is there a kitchen space involved that will be renovated at all?  Is the architect providing any other design services (finishes, layouts, booth design, cabinets, partitions)?

The jurisdiction will also need Mechanical, Electrical, Plumbing and Fire Protection drawings from licensed engineers.  A portion of that fee would be for those consultant's as well.

As a rule of thumb, the architectural services fee will be about 8-10% of the construction cost for a situation like this.  It's possible to find a little lower, but with a small project I'd expect it to be in this range.