All Forum Posts by: Stephen Pendl

@Account Closed short answer is Yes! But of course there was much consideration and due diligence involved before making an offer and during the time we were in contract. Being familiar with the zoning code (or engaging someone who is ;) ) is key here. For our highest risk deal, a SFH on land zoned for 10 units, we developed a concept design with an architect and complete a pre-app meeting with the city all prior to closing. Not to mention, we had a secret weapon in our corner (realtor @Corby Goade) who kept us very well-protected with how he structured all our offers - highly recommend him and his team.
In terms of construction costs, you're right there is much volatility there these days. My entire W2 career has been in commercial construction management, and the approaches we're implementing to lock-in pricing in that side of the industry can be emulated on the small scale multifamily level. Additionally, if bids come in way too high to the point where it's not feasible to turn monthly cashflow right away, an exit strategy is to get the design through entitlements, produce a permit set of drawings, and sell to a larger developer who has the resources to be able to control their own construction costs.
Kudos to all for the various creative approaches to adding value to the Treasure Valley community - exciting to see all the positive growth that's happening and it starts with people like you. Cheers! 

Hi Jason,

What my partner and I have been doing is making high, competitive offers on properties where we can force value. For example, a SFH on a property that's zoned for two dwellings. We add the second unit, and then it cashflows. With this method, we've been able to be competitive with other offers on SFH's and avoid the overpriced, over competitive investor cash offers on traditional multifamily (2-4plexes). We closed on two deals recently and have been moving forward with city approvals on both, fingers crossed! If all goes well, they will cashflow just as much if not more than if we'd bought duplexes several years ago. Another method to consider is short term rentals to increase rental income. I'm open to chatting if you want to connect! Best of luck to you!

Hello BP Nation!

I am in contract to purchase a SFH with conventional mortgage in Boise, ID. The great thing about this house, is it sits on commercial zoned property and after speaking to an Architect, I can fit 4 MAYBE 5 units on it. I'm looking for recommendations and/or guidance on how I can best finance this whole project with little to no money down. Pros and Cons for going with a Construction Loan from a local bank that is separate from my mortgage? Residential vs. Commercial construction loan strategies? Pros and Cons of utilizing a Renovation loan from my mortgage lender in tandem with the mortgage? Any suggestions and discussion is welcome...thanks!