All Forum Posts by: Peter B.

Well if its in the cost break down you provided upfront, I suppose you could. Cons: you would pay interest on your income assuming you take the wage.

@Nik Moushon

I guess my first question is What is the difference between a Duplex and a townhouse. For me a townhouse is simply a construction style... Narrower and on 2 levels or more.. Is this a duplex built with townhouse construction design? I have both and that is how I describe them.. Just curious.. 

Next observation is your process is eerily similar with the design/land use start up. I am finishing up 4 duplexes as I type this. I posted on here ,about it awhile back... I hired a surveyor who was pretty sharp, he kind of held my hand a bit up front on design, but honestly between proposal to the town- to scraping dirt it was less than 6k. I had probably a grand in attorney fees that was mostly to set up the condo plat and recording fees. Honestly probably 25-30 hrs total in phone calls, field visits, and town county meetings, visits. It still took 9 months from conception to construction, mostly to get on the series of town and county agendas required for the process. As far as your fees as an architect I guess I have no Idea where that is needed or justified? Maybe this is a regional thing, but here anything up to a duplex can be drawn by a draftsman. The lumber supplier employs multiple, and the service is free if you buy 70% of the materials from the supplier. Or 800-900 bucks if you decide to piece meal your materials. Architect stamp is needed for anything over a duplex. But the process is similar. I would take my desired design to the draftsman he would draw (free) then I would take it to the architect who would make a much more detailed version of the design. Still less than 1500 bucks all in depending if he draws MEPS as well. I hired an architect to design my slab, to appease our building inspector. It was 500 bucks.... Not positive but relatively certain my lender would question the fees as well. 

I guess next question, I think was covered a bit in an above post. Is why did you not decide to GC yourself?  As an architect its your job to know the process. Honestly after getting through zoning and design it should be pretty straight forward. Did your lender require it? Was the contractor number needed to pull permits? Did not have a relationship with subs? I guess all kinds of reasons are possible. I GCd my project, honestly less than 15 hours a week lining up materials, getting answers, unloading dumpsters, sweeping, periodically jumping in with a sub to help, buying pizzas on Fridays lol. I did self perform some labor on the first 2 but scaled that back on the next 2.

Congrats on your project and best of luck! 

@Justine Ade

Hi,

Yeah this is pretty much my first full development project. I've been in the trades for a long time, so I have a pretty good grasp of the process.

Numbers per duplex, (4 being built)

Cost to build 205,000     Pre construction Appraisal 295,000

Annual income: 29,000  (1,250 per month rent with 3% vacancy) There will be no vacancy, all are preleased with back log. 

Annual expense: Taxes 4,000,snow and Lawn care 500, trash 300, insurance 800, water softener rental 150. Total 5750

This is what we figured, and this is pretty much where everything came in.

@Kevin Reid

I am coming in at about 205-210 a piece. There is no land price in that as it is owned, however there is about 12-15k in well and septic per building. That could by you a city lot with sewer hookups around here.  I have a builder friend building similar design a couple county over, he came in around 230-235 with city lot. The difference is his GC commission.

2 completed and completely rented out. 3rd duplex to be completed by Dec 15. Foundation and in ground plumbing completed for building 4. Waiting for a lumber correction to start 4, I have trusses and some building material that was priced from March

In all 3 1500 sq ft duplexes completed and leased in 7 months.

Keep the carpet. Charge pet rent for the dog. Use pet rent to pay for the new flooring.

In my market. 1 level appeals to everyone. No stairs appeal to the 55 and older as well as the single,new families.

However to get the footage the buildings tend to sprawl somewhat.

Maybe your market is different?

The sale would have to be forced no willingly sold.

I have done a 1033....

A fire of a single family home... Insurance proceeds went to a 4-plex. I was able to hold the proceeds myself. No intermediary.. Much more relaxed timeframe. Didn’t need to name a property in 180 days.

Open cell you still need to poly the walls. That may help seal the odor.

Your cost per finished ft in your basement is less expensive. However..... depending on your appraiser, your below grade finished area appraises for less.

The most cost effective design, is a bi-level completely finished basement design. I see a lot of those going up right now.

You do limit your potential tenant pool with the living area on 2 levels.