BillZ260 Posted February 14, 2005 Share Posted February 14, 2005 Well, with my dad's passing last fall, I have to make the decision of what to do with his house/land. I think there is definatly some opportunity here but I need to be carefull. I'll give you some detail. The neighborhood is BAD, mostly old beat down rent houses near down town. BUT it is VERY close to downtown and just off of a major hwy through town. I would say 1/10th of the houses in the neighborhood have been demolished or removed so there is a lot of vacant lots. There are quite a few commercial lots sprinkles about and a main road in 1/2 block behind the house. The house is in BAD shape, so much so that it will cost more to get it up to snuff to sell than it could sell for, built in the teens/twenties it need ALOT of work. SO I need to get the house OFF the lot, I could try to sell it as is structure only, but my best bet is probably to donate it to our FD and let them torch it for training. (Not sure if they do that in town). Short of that it will cost $3-5K to get the lot cleared and graded and ready to build something on. I have considered selling the whole thing as is but it's not even worth $20K! SO on to my opportunity. The lot is zoned light industrial/residential! So I could build a decent shop on the site. I havn't recieved the plot back yet but I am figuring a 40' x 80-90' should be doable. I am thinking steel building with no windows but lots of skylights and a bay door on each side and a bathroom. I know of a guy that MIGHT want to rent out space for his wood shop business, so I am thinking if I COULD rent space out for my building payments then it would be a no brainer to build this shop. The rest of the space could be used for all the stuff currently not fitting in my garage at home. I figure I can get it all done for about $20K and if all fell through, then I could just sell it as a commercial proporty for some profit. This is the house I grew up in and I want to do something good with it, and I am realistic about it's condition. I have never had this much available capital to me and I want to make sure I invest it wisely. There are some efforts to make the down town area cleaner / better so I figgure that at the very least the proporty could just sit and gain value eventually, probalby 15+ yrs. Taxes are CHEAP right now, so we could just sit on it. And I share ownership with my little bro and sis. They are both ok with the shop idea. I have a good steady job as does my wife and we are doing just fine money wise. But this could be a break into somthing bigger for me. My thinking is that with more room = more tools and a space that woud be mine to create. I would really LOVE to build stuff for a living but I don't have the space to play at home really. This is what is really driving the shop idea. So I am just looking for some consensus, concerns, objections, yea nea's or simple some other view points. I know this board has a vast variety of experiecne, just wanting to tap in to it abit. ......and i am looking for a career where i don't have to spell... Quote Link to comment Share on other sites More sharing options...
baddriver Posted February 14, 2005 Share Posted February 14, 2005 It's tough to give someone any kind of advice on such a major project, but here are a few thoughts. Don't bank on this one guy wanting to rent the building. Do your homework instead. Try to find out what commercial space in the area is renting for, and see if it's reasonable. Call up a realtor and tell them you need some space in that area, and find out what kind of price they can give you. Is there any demand there? A realtor might be your best contact. Find one you can trust, tell them the location and plans, and find out what they would price the building at, both for rental and sale, then see if it's worth it. And try to get the guy who 'may' want to rent it to share some of the risk with you, that will tell you how committed they are. Ask him to put up an early deposit in exchange for a lower fixed rent for a few years, or whatever seems fair and practical to you. If you can come up with a deal that is a good deal for both of you, and he goes for it, then you know he is ready to do buisness. Just a few thoughts, good luck with whatever you decide. Quote Link to comment Share on other sites More sharing options...
BillZ260 Posted February 14, 2005 Author Share Posted February 14, 2005 GOOD STUFF! Of course I will take as much input as you fella's can dish out. thanks! Quote Link to comment Share on other sites More sharing options...
BillZ260 Posted February 16, 2005 Author Share Posted February 16, 2005 TTT No more suggestions? Quote Link to comment Share on other sites More sharing options...
dmyntti Posted February 16, 2005 Share Posted February 16, 2005 Be carefull predicting the price of the builidng. With a commercial structure you may be required by code to use a certain type of construction. I built a service garage in Ohio and it cost over $50,000 to finish. Mine was 40'x50' with 12' ceilings and one bathroom and one large door. I either had to build a engineered steel building or a 2x6 convetional frame building. Also there were other codes I had to follow. Drywall had to be two layers thick for burn rating, electrical had to be outside the wall and run in conduit, etc. One of the more expensive things was the need for an oil interceptor in the sewer line. The interceptor alone cost $3000. I had also planned to rent out part of my garage to the company I was working for. Well just before the garage was finished the company I was working for went belly up leaving me without a job or a renter. This meant I had to sell my building before I even got to use it. It took three months to sell it and I just about broke even on the place. I lost about $2000 when all was said and done, it could have been alot worse. This doesn't even begin to touch on the problems I had with the contractors builidng the place. I fired two general subs sued a plumbing sub and got in a fist fight with a grading sub. Be careful and don't go with the low bid if it doesn't fit with the other estimates. Quote Link to comment Share on other sites More sharing options...
dr_hunt Posted February 16, 2005 Share Posted February 16, 2005 As an engineer, I can tell you what we normally do in municipalities for commercial buildings. Site grading plan, site drainage plan, storm water plan and calculations, electrical plan, sewer and water plan, overall site plan showing building, parking etc. Building plans have to be reviewed by all the city agencies and must conform to commercial building code, which includes fire. Sprinkler the building and it'll help alot. Pre-engineered metal buildings are fine, can finish out an office and bath on the inside if you wish. There are minimum property line setbacks, front, back, and sides that you must adhere to. Oil trap on the sewer drain is not that big of a deal, can be concrete, however when it gets full of oil and you don't check it, it will discharge to the sewer anyway, not a big deal unless you are discharging alot of oil, antifreze, etc. Mop water doesn't count. I did all of the above plans for a 50'x100' commercial building on a 5 acre site for A&S plumbing in Alb, and got all city and county approval for 5K. Quote Link to comment Share on other sites More sharing options...
2126 Posted February 16, 2005 Share Posted February 16, 2005 Bill, Sorry to hear about the passing of your father. Hang tough partner! Quote Link to comment Share on other sites More sharing options...
BillZ260 Posted February 17, 2005 Author Share Posted February 17, 2005 Thanks 2126. This is all good stuff, I guess I am going to have alot of homework to do if I decide to go this route. It sounds like it's stil doable, but I need to make sure I cross my t's and dot my i's before I make any decisions. I am currently waiting for the lot alone apraisal, that will have markers and stuff to let me know building size, set backs, easments and all that. Should be in withing a week or so. Just a note the Lot is not very big, it's a regular home lot 60*120 or so. I am probably going to remove the house at a minimum so it is not a liability for us as no one in the family lives near enough to check on it everyday. I guess I will just be patient and see where this goes. Thanks again! Quote Link to comment Share on other sites More sharing options...
JKDGabe Posted February 17, 2005 Share Posted February 17, 2005 Are you sure it's not rentable? You might be surprised at how many people will di this. I don't know the area so this may not apply... put it up for lease with an option to purchase. Make it several years before they can exercise the option, the longer the lease period the less chance they'll actually buy it. No credit required since you're the owner, require a large cash deposit. The deposit should cover any damage they might do, since they're not renting they're responsible for maintenance. There are alot of people out there who have no credit and yet can come up with alot of cash for a down payment and if they don't follow through then what have you lost? You got some money out of it and can turn around and do it again. Obviously you'll want insurance in case it burns down etc. I know several people who use this method and swear by it... keep in mind what free advice is worth! Good luck! My dad & I just bought the house next door so I'm interested in knowing what you do with it and how it turns out. Quote Link to comment Share on other sites More sharing options...
BillZ260 Posted February 18, 2005 Author Share Posted February 18, 2005 That certainly is an option. The house is is VERY bad shape, I posted pics below for referecne. I guess I will read up on leasing vs renting and get aquainted with all the information involved there. I just want to stay away from midnight calls because the hot water is out or whatever you know? Front of house, to the right is a little machine shop and to the left is a parking lot. Back of the house, porch has settled big time but I think the structure of the main house is ok, need to get an Engineer in if we keep it. Quote Link to comment Share on other sites More sharing options...
BillZ260 Posted February 18, 2005 Author Share Posted February 18, 2005 ALL the soffet needs to be replaced as well as other outside trim pc's. House has alum siding which is in ok shape. Est on soffets were like 3K. Quote Link to comment Share on other sites More sharing options...
BillZ260 Posted February 18, 2005 Author Share Posted February 18, 2005 Bathroom is in horrible condition, needs to be gutted and redone. Basement is full of water and has 4 hot water heaters in it On top of all this, it's just plain depressing, the house, the neighbor hood. The house has been broken into several times since dad's been gone and we've been releived of some stuff but most everything was already out. Quote Link to comment Share on other sites More sharing options...
Guest Phil1934 Posted February 18, 2005 Share Posted February 18, 2005 Be prepared to pay a lot more for everything just because it's commercial. Our metal bldg cost ~$8K for a water meter and $12K for a power hookup. And even though it's commercial they probably weren't charging comm. prop. taxes. Look for them to more than triple. And our engr'g help was about $8K and we're an eng'rg office, so I did some. Quote Link to comment Share on other sites More sharing options...
BillZ260 Posted January 2, 2007 Author Share Posted January 2, 2007 Someone burned Dad's house down, so that helps in the decision to clear the lot. Should be done in the next 4 weeks or so. Also , the lot next door is also for sale now as a stand alone, I've been trying to contact the seller. I think if I can get the 2nd for a decent price, we'll have 1/4 acre near down town and proporty taxes will run me around 500/year for both lots. Probably won't being doing much of anything to it untill i'm done w/ this traveling business. Quote Link to comment Share on other sites More sharing options...
Ledphoot Posted January 2, 2007 Share Posted January 2, 2007 Have you spoken with the city about any beautification interests they may have in the downtown area? I know here in Raleigh NC they gave anyone willing to build businesses to renevate downtown all kinds of tax breaks and building assistance. The city may even buy your property at a good price and you can build your "playhouse"..LOL In a safer / cheaper area. I had a place in town once and someone cut through the metal wall and loaded everythig I had. You could see where their truck bumper drug the ground going out of the drive! Quote Link to comment Share on other sites More sharing options...
dsommer Posted January 2, 2007 Share Posted January 2, 2007 "Someone" burned the house down? What's up with that? Arson? Quote Link to comment Share on other sites More sharing options...
Twoeightnine Posted January 2, 2007 Share Posted January 2, 2007 Odd. I was getting ready to chime in with a smarta$$ comment about taking a match to er. The ranch that I bought has an awesome 3000 sg ft home on it. But it also has a "mother in law" two bedroom home about a hundred yards away that is in similar shape to your situation. Shes getting the match when the february snow flies! Good luck man. Quote Link to comment Share on other sites More sharing options...
Ledphoot Posted January 2, 2007 Share Posted January 2, 2007 How about we chalk it up to good luck and leave it at that peeplzz Quote Link to comment Share on other sites More sharing options...
dsommer Posted January 2, 2007 Share Posted January 2, 2007 Shes getting the match when the february snow flies! Good luck man. The mother-in-law????? j/k Quote Link to comment Share on other sites More sharing options...
Twoeightnine Posted January 2, 2007 Share Posted January 2, 2007 The mother-in-law????? j/k You silly man. The house is called a "mother in law" house. No mother in law inside! I'll change it to...put a match to er...... There hows that? Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.