All Forum Posts by: Ryan Irwin

Agree with what @Sofia Komrskova and @Jake Baker said here.  

I would get together with your realtor, have them tour your property and then run comps to see what the value add would be, then simply pencil it out to determine the return.  An appraiser likely isn't going to spend time giving you much feedback in advance (unless you have a connection or they are super slow).  

 Tagging @Evan Ryan but appreciate the thought @Jaycee Greene! :)

Awesome!  I was wondering if a manufactured home would be an economical and profitable solution.  Besides the price point, there would certainly be a time savings aspect too (and we all know time is money).  

Keep us posted, thanks Griffin! 

I'll vouch for @Darson Grantham, I know him personally and attend his meetups, he's a great go-to in Central Iowa.  I've been investing in the area now for a few years (I'm a local as well) and lots of opportunities like Darson said.  I'll send you a DM, let's connect!   

Let us know what you find out.  One of my lots had only a garage on it, which the city wouldn't allow, needed to have an inhabitable structure in addition to it.  That might be the pushback from the city under the accessory uses section?

@Griffin Malcolm I have a similar situation (except my lots weren't free, lol).  

The first step I'm doing is checking with the city zoning to see what they would allow before I get too deep with looking at plans, financing and construction.  Once the city gives direction, then start to look at available options and penciling out the numbers to see what makes the most sense.  

If they won't let you build on it, explore doing a lot tie agreement so that you can combine the parcels and when you go to resell it, you can ask for a higher price point based on the large lot.

 This is a great question!  Besides putting together the best SOW using accurate/actual quotes as @Peter Mckernan and @Alan Asriants commented above, another key aspect is tracking expenses (bookkeeping) and monitoring the budget throughout the project.  Letting your contractors (specifically if you have a GC) what the budget is and that the must notify you if a change order exists (versus they tell you after the work is completed).  Change orders are going to happen, but by needing approval from you before they move forward, this allows you to control expenses better and/or make adjustments in the SOW so that you can stay on track and on budget.

 Another book I would recommend is the recently published book by James Dainard titled "The House Flipping Framework".  I have read and own J. Scott's book as well.  James' book has a bit of a different perspective and I think both are valuable to expand your knowledge and experience.  

 Hey @Jin Zhang great question!  

I'm in Iowa and while not KC, I think the factors are probably similar being in the Midwest.  The biggest devastating factor I would say is tornados.  However, the likelihood is low.  On a more common event list, would be hail, flooding and wind damage (trees esp.).  I would think your insurance agent might have access to some historical information for a specific area as they would want to examine this closely for their underwriting.

Hope that helps!   

Appreciate that @David Martoyan!  

We're exploring both options.  At a minimum, having viable plans in place for development will make these lots more marketable and valuable to potential builders when we have conversations.  However, we also recognize the time value of money, so while it might pencil out to turn a profit, but we get an immediate payback versus a six to nine month holding time, it might make more sense to sell them both as bare land.