Is It Better To Buy Lot And Build 4 Units Apartment Or Buy An Old 4 Units Apartment?
Hi Everyone,
Can someone please give me the pros and cons between the two?
Buying lot and build 4 units apartment vs
buy an old 4 unit apartment.
I will not occupy the apartment, use it as passive income.
thanks.
Hello rcy,
I am in the same scenario... build four detached homes on one lot or buy four homes on one lot... you know what it comes down to what can you build it for and find out the "spread" between the both....If I can build cheaper than buy then do so.....
John
We are looking at an old 4 unit doggie in Burbank that is on a commercial site. It needs to be knocked down. Cause everything you touch crumbles in your hand. The termites have let loose no longer hold hands and the King Stud I touched just crumbled away. The original foundation was brick and some dummy tried to correct by slot cutting and inserting concrete. He neglected to bolt on much less put any steel in the form. As to his tie of steel into brick, forget it.
So It looks like a teardown.
What I would like to do is erect three, three story mixed use buildings utilizing ISO containers which cost me $300 a piece Use 4 40 footers and 4 20 footers on end. On the middle one move it back on the lot creating a patio. In that building will be a small specialty restaurant who will use the front set back as a patio for tables and casual eating. All glass and steel. First level commercial and the second level for business and the third level for residential living. All southern exposures will have solar panels to create electricity and on the roof will be some solar panels for hot water and building heating. I might go a little crazy on the top unit and create a metal sliding roof to go back and forth over the garden area. I might need a variance for that cause Burbank the City of Choice is a little freeky when I mentioned such a device.
All glass and steel , the middle unit with the small restaurant where would be writers and actors could sit, overpay for coffee and funny shaped bread. Give an interesting kick in the ass to the street. Of course I just might option some of the other stuff figgering a small price increase through this gentryfication. I think my costs would be about 40% of stick built.
the population is mixed middle class some high income movie people at the south end near the golf course and of course the lake of Toluca Lake. The rest upper working class and mostly tied to the film industry. You know Gaffers, Electricians, Makeup, Props and Asst to the Asst to the Asst. So there is acceptance of Modernistic Architecture.
I think it would be fun. One of the next door neighbors is a Real Estate Agent who looks like he belongs in a Dickens Novel. He is a bit hostile, a lover of Cape Cod and stuff. Wears a suit and tie, the only one I have seen in Burbank.
What do you all think? Cheers Lucius
Well they are very different processes. The choice of which to do is largely a function of which set of skills you have and what kind of work you want to do. Of course economics is also an issue (theoretically you should be able to build the new units for less than you can buy the existing ones but that is not always true) as is the amount of risk you are willing to take.
Lucius, I think the containers multi-use sounds wonderful. Seems to me that not having any rooms wider than the 9 or 10 feet width of a container though might be a problem. How are you dealing with that?
Commercial Talking: I'd like to hook up to break bread sometime. My membership does not allow me to respond to messages. Please email me a number where I can contact you.
Tnx
[addsig]
Quote:
On 2004-07-12 08:28, commercialking wrote:
Well they are very different processes. The choice of which to do is largely a function of which set of skills you have and what kind of work you want to do. Of course economics is also an issue (theoretically you should be able to build the new units for less than you can buy the existing ones but that is not always true) as is the amount of risk you are willing to take.
Lucius, I think the containers multi-use sounds wonderful. Seems to me that not having any rooms wider than the 9 or 10 feet width of a container though might be a problem. How are you dealing with that?
Hi, I solved the problem of limited size by combining in parallel. I for example would take a 40 footer which is 8 by 8 and then take out the interior walls. Leave all of the structure supports. Now I have a width of 16 feet and some of which I lose as I install insulation but I will have at least 15 feet of width. When I use them in the present instance on end, I once again do the same thing. Remove walls when I need more width. I weld, or bolt then epozy over and sometimes put a trough for rain. Not a problem. It is a lot of fun. something like playing with blocks. You should have seen me before I got so I could handle CAd. Down on the floor with little models made out of cardboard and glue. Add and subtract. Here I am 82 and playing on the floor. Very hard to explain to my children when they come to visit and judge. I have one child who has won two Oscars. In her group I am considered a rather large failure, I do not make $20,000,000 a year and I guess I never will. But I must admit it is a bit hard to explain the look of fierce concentration down on the floor putting little boxes together. Senility was one answer. My answer it is fun. I think all great events start somewhere really simple On the Floor. Some of the best times I ever had in my life were on the floor. Hmmm.
Lucius
Look at the bottom line. Do the numbers work for you? which numbers are better?
Keep in mind building will be time consuming, and requires a different set of skills to manage.
Mr. Lufos, that's brilliant, an absolutely brilliant idea. I have a bud who uses a 40 footer as a shop in his back yard. He paid 1k for it including the set up. Do you have any plans that you might be willing to share? What about windows and doors? Do you attach wood to hang the drywall to?
Well, for what it's worth, I think that it 's not as much which is better, both processes can reap a decent return. If you have money and time and want to sell for a capital gain after built and leased, you can go for building a new bldg, if you need cash flow soon, buying a minimal maintenance bldg or a bldg in need of repair buying an existing bldg could suffice. To get a return comparable to the profit of new construction sale maybe a condo conversion could provide a similar return. After all this I'm just saying it may depend more on the type of money you need to come in. For what it's worth.
Well, for what it's worth, I think that it 's not as much which is better, both processes can reap a decent return. If you have money and time and want to sell for a capital gain after built and leased, you can go for building a new bldg, if you need cash flow soon, buying a minimal maintenance bldg or a bldg in need of repair buying an existing bldg could suffice. To get a return comparable to the profit of new construction sale maybe a condo conversion could provide a similar return. After all this I'm just saying it may depend more on the type of money you need to come in. For what it's worth.
Well, for what it's worth, I think that it 's not as much which is better, both processes can reap a decent return. If you have money and time and want to sell for a capital gain after built and leased, you can go for building a new bldg, if you need cash flow soon, buying a minimal maintenance bldg or a bldg in need of repair buying an existing bldg could suffice. To get a return comparable to the profit of new construction sale maybe a condo conversion could provide a similar return. After all this I'm just saying it may depend more on the type of money you need to come in. For what it's worth.