All Forum Posts by: Ryan Kennedy

Hey y’all! 

We own a piece of land in an up-and-coming urban neighborhood. It is zoned higher density, and we've seen some cool SPUD's get approved and built here the past year. Ideally, we would like to split the lot into two parcels, and build an SFR on each one, hoping to avoid any HOA or townhome situation.

Our goal is to be able to build both houses without having to take on any equity partners. We’d like to live in one of the homes as well. Our initial thoughts are to draw up architectural plans, get the lot split approved, and list the lots for sale with plans. We could sell one and use funds from that to assist with building the other home? 

Does anyone have experience with small infill development and want to pitch in some advice?

thanks! 

@Wayne Brooks appreciate the knowledge! Both of these facts do not go in my favor, which is a bummer. Is it reasonable to set it up as 2 town-homes with 1 shared wall and no association? These are still very rare in OKC but I've seen them in larger metros. 

@Ray Johnson thanks so much for this input! Yes, I don't have any experience with forming an HOA, and I noticed most developments like this are 6+ units, so I'm sure that's going to be very costly per unit. The lot is currently zoned R-3. I met with a developer last week that recommended re-zoning for the most flexible future-use of the property, so we have flexibility down the line. My understanding is re-zoning will be a 3-month and $1500 process, and our area typically doesn't have problems getting reasonable developments rezoned. We'll be meeting with them very soon to get more information. Either way, we don't want to execute our plan immediately. My wife is an architect, and we plan to take at least 3-months of schematic drawing as well as finding the right bankers/builders to do the job right.

Following!

@Andrew Angerer @Aaron K. thanks for the replies guys, I'll keep you in the loop. I think there are a couple of benefits to going the condo/townhouse route in this situation - 

1 - Sell 1 unit, and IF there is profit (once we buy our unit and make our down payment), reinvest all of it in a bigger project.

2 - "Buy" and move into the 2nd unit. Depending on our equity position, we could put down anywhere from 3.5% to 20% down, which is nice. I also believe selling the 1st unit will help get us the best possible appraisal on our unit. My understanding is that appraisers are typically very conservative on new construction duplexes, so I'm hoping I can get a better appraisal/more equity if I sell the first unit at current market prices. 

3 - We will still own the 500 SQFT cottage on the back portion of the lot. Rents on that unit will cover around 50% of our mortgage. 

If I go the traditional duplex route, we'll hopefully be able to get 1% of rents for the cost to build, which is fine over the course of 30 years, but not amazing. It's also very unlikely I'll be able to pull any cash out from the deal, if anything I could have quite a bit stuck in the home. I think we'd much prefer to sell part of the deal, live in our unit with a good equity position, and reinvest profits into the next deal.  

My wife and I are under contract on an urban residential lot, and we're trying to figure out the best way to utilize it. The lot has a small cottage in the back, and plenty of room for a duplex in the front. Our initial idea was to build a duplex, live in one unit, and rent out the other and the cottage in the back. 

However, I had the idea of possibly turning the newly constructed duplex into a condo, selling one unit, "buying" our unit, and still renting out the back cottage. On paper, this seems like the best deal for us to make money now and also make money later. Has anyone done something similar? I'm sure there could be some costly tax consequences to this as well, but I'm not finding much information online. 

Thanks!

Hello Financing Gurus! Here is my situation:

My wife and I currently own an owner-occupied SFR that we purchased 1.5 years ago for 5% down. If we were to get an appraisal right now, we would be somewhere between 15-25% equity.

She is an architect with residential experience, and our next goal has been to find an urban lot in a high-density zoned area to build an owner-occupied 2-4 unit property.... AND..... I think I've found exactly what we're looking for. It may be worth mentioning that the lot has a small building in the back that could be live-able with 10-15k of work. Our goal would be to remodel that and also build a duplex/triplex on the main portion of the lot.  

Now, I'm trying to figure out how to finance this whole deal. We REALLY don't want to sell our current residence (it will be renting at around 1.5% rule as we also have a remodeled garage apt in the back, we want to keep this great income and HODL for potential appreciation!!!). 

Our DTI is going to look terrible with two mortgages, minimal equity, and average income. I've read that we could do FHA on the 2nd home since we are conventional on our first home, but we may run into problems with the aforementioned scenario. We're trying to get the 2nd home for 3.5% down, or as low as possible.

Would love to get some advice to pull this off!  

@David Niederman sorry I just now saw your reply, just emailed you. 

@Pierce Lovesee welcome to OKC! Just emailed you as well. 

This one went under contract a day after we posted it and closed in 2 weeks. It was a hot one! More coming soon. 

This Duplex is perfect for an owner occupant wanting a great investment or an awesome addition to your rental portfolio. Just blocks away from the lively 16th Street Plaza district and all the amazing things downtown. Each unit is an oversized 1350+ SQFT with 2 bedrooms and 1 bathroom in each. 1 upstairs and 1 downstairs. Both have Central Heat and Air systems (2012) and new hot water tank just replaced last week. Wood floors throughout and tons and tons of original charm still left in this house. Corner lot with great curb appeal. Each unit has its own garage, which is a great plus for a high end tenant. Don't miss out on this one as it won't last long.

ARV - $260,000 (2770 NW 20th Duplex sold for $274,000)
Would only take $25-30k to make the property shine again and you will create $70k+ in equity.

Price - $157,000. Only serious buyers please.

For more info please call -

405-633-0037

Housedealsokc.com

Oklahoma City, OKC, OK, Oklahoma, Plaza, Paseo

Rare opportunity to buy 2 duplexes on the same street in Historic Miller. Each property has one side recently vacant, and other side rented month-to-month. This makes it a great opportunity to keep a little income while updating the vacant side and then once rented at new market value to move out the other tenant and do the same. Great value-add deal to do a quick rehab and pull your cash back out once leased at market rents. 1/1 Duplex next-door rents for $850/month each side!

$105,000 each if purchased together.

Do not disturb tenants or approach property without arranging a showing.

See more photos and all available inventory at

Housedealsokc.com

For more info or to schedule a showing call -

405-633-0037