Welcome!

By registering with us, you'll be able to discuss, share and private message with other members of our community.

SignUp Now!

Apartment Construction-Advice Needed

S

SanjivSheth

0
Registered
Joined
Jan 12, 2009
Messages
15
Firstly, thanks to all the active participants on this forum. I daily look forward to logging in!!

Okay here it is. I have a duplex apartment in Mississauga, Ontario which I am using as a non-retrofit Triplex. I have owned this for a few years and despite the building being quite old (>70 years), and not in need of any major repair-work, I generally do not find myself spending a great deal of time managing it.

While I have thought of selling it; my real desire and wish is to tear this house down and build a possible 6 or so apartment building.

I have no idea what the first steps are in determining if this is possible. The lot size on which the house currently stands is 65 x 85.

Any suggestions?

Do I speak to the City first or do I engage an architect? And how do I estimate the cost of such an endeavour and even if all this is possible, where do I find a partner who may be willing to share risk/rewards?
 
As some one who is employed in the engineering /construction world he`s my two cents worth. First find out what the property is zoned for (call the city). If the property is not zoned to allow a 6plex, you will need to go through a rezoning process where you will need to get the approval of all your neighbours to build the 6plex as well as the approval from the City. This can be a long and costly process and has no guarantees. 2nd - if your property is zoned to allow for a 6plex, obtain from the city the zoning by-law from your property. This will tell you how far back the building must be located from the lot lines, how many parking spaces you must provide, how big the front yard and rear yard need to be. See if you can come up with a site plan that makes sense - if you can`t fit a building and the parking spots on your property, than you`re out of luck. If you need help doing the site plan this is the time to talk with an engineer. Once you`ve got a conceptual site plan then proceed to talk to an Architect. They will be able give you pricing estimates, etc. Then you can decide if it is worth it.
 
Hi,

I live in Mississauga, you can go to thier website and they have an interactive zoning bylaw feature. Just type in your address or tax roll code and it will
tell you everything from the zoning type for your lot to any permits or violations etc. for your site. It is really easy.

PS. Getting a building permit is very tricky process in my experience, you will need an architect etc., That being said I believe Mississauga to be a pretty business friendly City.

My 2 cents,

Bill F
 
QUOTE (EffectiveResume @ Jan 14 2009, 07:52 PM) Firstly, thanks to all the active participants on this forum. I daily look forward to logging in!!

Okay here it is. I have a duplex apartment in Mississauga, Ontario which I am using as a non-retrofit Triplex. I have owned this for a few years and despite the building being quite old (>70 years), and not in need of any major repair-work, I generally do not find myself spending a great deal of time managing it.

While I have thought of selling it; my real desire and wish is to tear this house down and build a possible 6 or so apartment building.

I have no idea what the first steps are in determining if this is possible. The lot size on which the house currently stands is 65 x 85.

Any suggestions?

Do I speak to the City first or do I engage an architect? And how do I estimate the cost of such an endeavour and even if all this is possible, where do I find a partner who may be willing to share risk/rewards?


If it was me, I would get a valuation of the property as is. And determine land value in the area. If land is less than value of property, sell.

100%, you are not going to build a six plex on that spot. No way. Landlords in Waterloo have been maximizing land and space for some time now. I recall a student sixplex built about four years ago on 60 x 100 feet - a real, real tight squeeze that resulted in large, large expenses for developer/owner.

In this scenario, the property was concrete construction (not frame), parking underground (think large $$$$$), and had an elevator (think more large $$$$$). Add the three and you have major $$$$$$$$$$ costs.

Sell, take the money and put a downpayment on a six plex.

Mike
 
QUOTE (EffectiveResume @ Jan 14 2009, 05:52 PM) While I have thought of selling it; my real desire and wish is to tear this house down and build a possible 6 or so apartment building.
WHY ?
 
Tom, I am a bit concerned I won`t get my money back. I have listed this property prior twice (once when I was curious as to what response I would get) without recieving anything like an offer. Perhaps the agents I used were no good; perhaps the property is not as attractive as I think it is.

So my thought process is that perhaps if I find a partner, tear the building down and build something like a 6-plex; I have a chance of making some money????

I would if I could like to release my equity from this property and I know there are investors who will entertain such a property. I just can`t seem to find them.

FYI my gross rent per month is $3300. I pay the utility and this averages around $500. Insurance is $150 and property tax is $275. In addition I also recieve laundry money which averages $60 per month.

Any thoughts/suggestions????


[quote name=`thomasbeyer2000` date=`Jan 16 2009, 12:04 AM` post=`48149`]
WHY ?
/quote]
 
QUOTE (EffectiveResume @ Jan 16 2009, 06:06 PM) Any thoughts/suggestions????
Selling right now anywhere is hard and will yield a very low price.

I suggest to hang on for 2-3 years if possible ..

Construction is a totally different business with special expertise and special financing requirements .. and also very risky and very time consuming .. it usuualy does not make sense unless you do many properties at once / in a row and know what you are doing .. do you ?

What are you asking for this land / asset ?

Another way to tap into equity is to re-finance, i.e. add a mortgage such that it is still cash-flowing but much cash is now removed .. have you considered this option ?
 
You must log in or register to reply here.
Back
Top Bottom