here is the info whats your opinon? aparment building

[fish]

lets go from the ground buying  1/2 city block 125'x400'  4 different owners

                                                                                      asking price           total assessed value  in 08'
                                                     1st  $450,000   20% carry 3years          $170,900    second hand store
                                                     2nd                            $600,000              $119,800   old  "bar&lounge"
                                                     3rd                             $550,000              $210,000       old single story
                                                     4th  $450,000  20% carry 3 years          $124,000              parking lot
 i see pipe dreams? as far as asking price.

        the property is within the urban renewal zone.  designated for highdensity housing. can go as high as 56' main roof leval. my plan is to take it 4 storys 12' each  and around 100 units total. with an average of 1000sqf per unit. $550 all utilites payed.

[Gold River]

Hello Fish,

                Ok, lets take your example 125 x 400. You did not say whether there are legal set backs or off sets, but lets just address this first of all by size.

Providing parking at 2 spaces per unit and 6 guest spaces and 2 handicapped spaces the most units you could get on this lot without going underground is about 60 units.

 Now if you parked cars completely along the ground and built units above you could put 60 units into 2 stories above ground level. This still requires a concrete parking garage ceiling poured to seperate and create a fire burn through rating between units and parking,

Any way you cut it you won't do this for a debt amount of $275 per unit, remeber gross rents are subject to the 50% rule of management and maintence cost's. In fact if your paying utilities you will have even less than that to spend per unit and $275 only services about $35,000 in construction cost's and your project as I described will run somewhere between $85 and $110 per square foot.

The reason for more cost - concrete cieling / floor seperating parking and supporting unit's, sprinkler system will be required at an extra cost of $6k to $10k per unit, fire doors, elevator, tap fee's, assessments, fire/life/safety issues, fire hydrants and stand pipes, fire burn through ratings (seperations).


And these sellers want $2,050,000 dollars for the existing properties and land before you demolish and grade a lot, watch for asbestos, lead based paint, leaded waste and drain piping, oil tanks or old coal fired boilers and hazardess waste.

Demolition could easily run $150k or more!

This whole thing is a pipe dream, this is why development is not easy or something for everyone, it takes experience, skill and a bit of good luck.


                                                GR