Build It?
I have built every part of house at one time or another but never the whole thing, however I know I could do it.
I have a lake front lot that I own outright and a $150,000 line of credit at the ready. I am tossing around the idea of building a duplex on it.
Does a duplex make the most sense for maximizing profit? It just seems like you could make more since you are selling two houses instead of one, even though they would be smaller than a single family home. It seems cheaper too since you are using a common basement, foundation, common wall, roof ect...
Are duplex's the way to go? Any source of pre-designed plans for these available?
A couple of things to consider:
1. Will your zoning allow duplexs?
2. Who is your market? Yes, duplexs may be cheaper to build but will you have any buyers.
Good luck?
Zoning is fine.
Why do you say will anybody buy it? Do you think there is something hard to sell in regard to duplexes?
My personal opinion on Duplexes is the only people that buy them are investors, who are cheap somebodies. And, here in Atlanta, they've bid the prices up on duplexes so high that you it's almost impossible tomake the payments on them with the rent. Then, they don't appreciate very well, because, after all, who's gonna buy them? Yep, go back to the first point I made.
Rehabinator
I have never owned or tried to sell any duplexs. However, I would think duplexs are great for rental property and for investors buying rental property. But, for spec lake homes?
In my area water front is at such a premium, anybody who can afford to live on the water is going to want a high end sf home. [ Edited by pspiers on Date 05/25/2004 ]
Why would one waste valueable "lake front" property on a duplex, even if the surrounding area is not on the same level, building a duplex on water front property seems counter productive in the long run.
I agree with Jam, many people that buy duplexes as well as other rental investment properties are .......as he said; "cheap".......doesnt make sense.
If anything......if I wanted to get rental money out of the www.pr.operty, then market it as a sfr vacation rental........the least I would do would be just a nice attact sfr.
Most duplexes are ranch style which cost more........more foudation, ceiling, roofing etc.
NC
[ Edited by NC_Yank on Date 05/26/2004 ]
I have no idea whether a duplex will work on a lakefront lot in CO. I have all the same reservations as the others. But the answer is to do research with the local MLS and see what sells. Not to ask a bunch of guys in Chicago and Atlanta and where-ever. All real estate markets are local.
Since you own the lot outright and are not pushed, why not try to sell it as a "will build to suit", sort of a presell. You can test interest this way.
You may not come out making more for a duplex, and have twice the headaches. I agree you should look hard at the surrounding homes, prices, appraised values, length on market, etc. Look specifically at how duplexes do in your area.
A high end home may be the answer as your profit will generally be much higher.
Seems there is less risk in one way to build a single home. What if you sell one duplex to loud, messy owners. It would be a very hard sell for the other.
As far as building cost, you have twice the cost of some of your costly items like appliances and fixtures. Plus, you most likely will have to put a firewall which will probably cost more. Check out code restrictions.
Do the research on both. After doing your market analysis, check out some plans (www.nelsondesigngroup.com has some duplexes), get your figures for each. Figure your building price per square foot and your anticipated selling price, and of course your projected appraisal price (important since you cannot sell it for more than it will appraise for most likely). It will take time, but you'll probably have the answer you are looking for.
Another consideration is a condo unit which doesn't seem to have the same negative connatations associated with duplexes.
Or apartments. These do well on a lake near me. This is a different ball game as you are the landlord, but it could be profitable if you're looking for cash flow.
Good luck.
Terry[ Edited by concrete on Date 05/27/2004 ]
Thanks for the responses, I should have given you some background:
This lake is not in Colorado, it is in Nebraska, if it was in Colorado the answer would be simple because the lot would be worth $500,000 instead of $50,000.
This lake is a sleeply place made up of old timers which are people from Nebraska who hunt and fish around the lake, the money is from Colorado. The Nebraska people hate the Colorado people because they come out with all their toys and have 10 times as much money to throw around.
The homes there are about 75% seasonal not full year residents. About 50% are trailers, 35 % are modular with the remaining being 15% stick built. So you should be able to get an idea that just because it is lake front doesn't mean it is a million dollar property, this is Nebraska, think the sticks. A lot of places up there are on leased land no deeds.
Nobody from Nebraska would buy one of these duplexes, the first thing they would say is I don't want to buy 1/2 a house. But people from Colorado have the money and they get the concept.
Part of the beauty of the duplex concept for a seasonal lake property is that you have another family there to help take care of the property when you are not there. Everybody who has a place up there from Colorado has a network where you mow somebodies lawn for your neighbor if they don't show up that weekend and they return the favor for you if you don't show up another weekend, there is stuff like that going on all over the lake. So the duplex gives you hopefully an instant caretaker if you have at least a slight personality.
As for the MLS, they don't even know what it is. People throw a sign in front of their place to sell it, they don't want to pay those outrageous commissions when I can just sell it myself!!! Yup!
About the most expense place I have seen was a single family on the lake for $240,000, off the lake the house would go for $150,000, then their are modulars for $50,000 and trailers you can buy for $10,000.
This might not change your outlook in regard to building a duplex, or it might.
It would still be hard for me to build a duplex on your lot unless there were already successful duplexes on your lake or on a similar lake.
Of course somebody has to be first. I'm just not that bold. I like proven products.
I think that putting a duplex on lake front is not the best choice because its like trying to put a doublewide in a million plus per home area. I see what point you are trying to make about you could make more money but personaly when I think of lake front property I want to see single family homes. Now if this were beach front in FL or Los Angeles this might be a different scenario.][ Edited by senatorcbp2 on Date 06/13/2004 ]
On many lakes I have seen there are townhomes and condos at some spot on the lake. Normally in a more populated section and closer to things people walk to (shops, etc).
So, a duplex is not so far fetched.
The key will be based on what is near. If there are MH's then a duplex will not seem so out of place.
If there are large SFR's with large grounds then a duplex see a bit odd.
Some duplexes can look like a large SFR that happens to have more then one front door. Maybe from a past conversion. That is another way to have the property fit in.
John
[addsig]
senatorcbp2 - you should read my 3rd post.
"Some duplexes can look like a large SFR that happens to have more then one front door. Maybe from a past conversion. That is another way to have the property fit in. "
Yes, the comments in regard to duplexes looking like ranch style homes earlier really made me scratch my head. That would be the last style of design that you would want, there are plenty of better designs that function for the property better as well as look much better.
Ive read all of the post but I guess where most of us are coming from are thinking of a lake with nice houses around it. I guess I need to see a picture of the surrounding property. I have two lakes close to another where I live one has all house and no duplexs except right near the city part of the lake but only a few. And another lake where their is nothing but white trash in 1950's trailors. If you have a picture of your lot I would like to see it ( just curious)
My lot is a lot and 1/2. To the left there is a stickbuilt house, another stick built house and a modular, to the right is a modular, a stick built and a log cabin. One lot off the lake behind us are the same mixture and two lots off the lake behind us are 30 trailers. I don't know how much more to make it clear, this isn't Reno, or LA, this is Nebraska.
Hi Rehab,
I am finishing up a custom house on the lake.......to the right is a camper on blocks...to the left is ......well I dont know what it is.......other then a mess.....the custom home I am doing for my client is alittle over 2200 sf and appraised at over 250k.
Their view is that the property will be worth even more as time goes by....
Lot two doors down asking price is over 100k........I would pay 30k but not 100k......rest assure.....some fool (from up north........nothing personal....since I am from the north I can speak freely of about my own kind that come down here and pay outrageous prices....) will pay the price in a couple years.
With all said...how about getting up with a designer that could come up with a duplex plan that could easily be converted back to a SFR if need be.
NC
NC,
LOL, Sounds like you understand what I'm dealing with. Lake front doesn't necessarily mean million dollar property.
Interesting idea about doing something that could be converted later.
Sounds like most posters' concern was with it not fitting into the area. Your description sounds like that isn't a problem at all; I'd go for it.
well, have you decided on what to do with the property yet.