All Forum Posts by: Account Closed

Zoning codes are specific to municipalities and cities.  I don't know how B2 is defined in your city's ordinances but usually zoning codes are more restrictive of multi-family and less restrictive of single-family.  Best thing to do would be to call a zoning official, let them know the address of the property and your plans and ask if what you're wanting to do is allowable.  

Hi John,

The architect should be able to assist you in selecting a contractor.  In a traditional model the owner-architect agreement usually includes a section about the architect assisting the owner in selecting a contractor. There won't be a contract between the architect and contractor, just between you (owner) and contractor.

It's not uncommon for architects to have one or several contractors that they work with regularly.  By asking them for a recommendation it could help the project to go smoother since they will already be familiar with each other's work. Hope this helps.

If you are looking to invest in new haven there are a lot of things to consider. Are you targeting Yale or general public? Vacancy rates are low because demand for housing is very strong. New Haven has very distinct neighborhoods. Some of the best and worst neighborhoods in the city are literally adjacent to each other. This requires you to be very familiar with specific streets because it can be the difference between night and day from one street to the next.  Most undergrads either live on campus or downtown in apt. buildings from what I can tell. Usually leases are 12 month terms. Many students living in the kind of home you are talking about are grad or PhD studentship and are in town year round. As I mentioned, demand is strong but there is a window when most of the Yale housing is renting and if you miss the window you could face some long vacancies or be forced to accept a lower rate.  My advice would be to get very familiar with the city before you decide to purchase. There are a variety of different demographics and it's very important to understand the needs of each and what comes with each.

Dont forget to factor in design fees for an architect. I would say its a good idea to hire an architect even if it may not be required because a professional design will add a lot of value to the project. Being a multi-family, it may require an architect - not sure what state law is in PA.

Thanks for the input everyone. I think I'm moving on from this one. Maybe the seller will reconsider. I will follow up of anything ends up coming of it. 

@Wayne Brooks Yes, I believe it was because of non payment.  I'm not sure what the sellers monthly payment is although they bought the house for $350,000 in 2004. I assume they refinanced at some point because they're listing for $475,000 or $173/SF.  Not sure what our number should be at because we're waiting on comps but the houses in the neighborhood that are selling for 475k are much higher quality.

So we have found what seems to be a great opportunity with a 3 family property in a great neighborhood.  All of the numbers look great except the price.  It is overpriced by a good bit but we have learned that the bank has called the note.  I have a feeling that rather than trying to cut their losses and move on the seller wants to profit from the deal because they believe the house is worth more than what it really is.

The question is really about strategy and options - what kind of deal could we put together that could:

• keep the property out of foreclosure
• satisfy the seller and make them feel good about the deal 
• allow us to get a good deal

Surely we could figure out something that could work out as a win-win, anyone have any thoughts?

Hi @Nat C. 

I would agree with @Kurt F. and @Patrick H. Hopefully what your draftsman comes up with will be more workable than the first two options. From my perspective, no matter who you rent to, more common space and at least an additional half-bath will be important.  

Without knowing what the site is like, one option might be to flip the kitchen and BR 4.  This will provide more continuity between public spaces which will make 2 smaller spaces feel larger, and you may be able to utilize the existing over head door opening to let out to a patio...  Also a simple bar/island could serve as divider between the spaces and as a place to eat. 

@Gilbert Ross Jr thats a good point. If I am unable to sell and need to re-list though, I am afraid holding costs will really start to cut into my profits. Any way to minimize holding costs in this scenario?

@Johnson Ejalu Thanks for the tip.  I can see how doing a rehab this past winter would have been pretty challenging. Not sure I want to get involved in a project during that time frame!

Thanks  @Elizabeth Colegrove

Do you find that contractors rates are also lower in the winter?