Issue 12
Q: I have a buyer who wants to buy an older house on an over 25,000 square foot lot. The house is set at the front of the property so there is plenty of room in the back. She would like to add five units back there. I am not sure if this makes sense given the configuration. There is also a highway behind the property. Thoughts?
A. I have taken a look at this property and do have a few thoughts. Below is the current configuration with the street on the left and the highway to the right:
This is a very narrow and deep lot. It is also located in a Tier 1 city under HB 1110 so up to six units are permitted if at least two of the units are affordable and/or greater densities are allowed due to proximity to transit or for other reasons. The buyer should check with the City to determine if there are other considerations or restrictions.
Now, there may be a few different options for this property that are worth considering depending on what the buyer's end goal is, the buyer or renter demographic for those units, and the comfort level with the expense of these options. Of course, learning about City permitting fees, impact fees, additional development requirements, utility hookups, parking requirements, and what incentives the City offers for development are important.
When evaluating an opportunity like this, whether helping a buyer or listing a property, one needs to treat this like a gameā€¦a game you get better at the more you play and obtain knowledge. And in this case, you can help your buyer by helping them define the myriad of options in front of them. Of course, buyer needs to verify all information and do their own due diligence.
Below is an outline of the different options to explore with a property like this:
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