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Stupid Me! Real Estate always teaches you something.

By
Real Estate Agent with Keller Williams Elite RM423455

I am a seasoned real estate investor in Lancaster, PA. I believe there is no investment like real estate and recently purchase a 3 unit in Lancaster city. One unit was vacant and ready to be rented and the other two units already had tenants.

As I looked at the first floor unit, it was laid out poorly. Moving a few walls, adding a bathroom, moving the kitchen and separating the heat source so each unit pays its own heat would make this property more valuable and increase the net income.

Real Estate Investing in Lancaster, PA

Having renovated several real estate investments, I saw this as a fairly simple job. I headed to city hall to apply for my building permit, only to discover something I was previously unaware of. This was a three unit and therefore a commercial unit according to the building code. What does that mean?

In simple terms, I had to get sealed architectural drawings. Well nothing has been simple about this relatively small job. My draftsman and architect are amazed how much detail is being required for such a small job.

The latest in this saga is that I now need to get sealed HVAC drawings. I spent some of my Friday finding a mechanical engineering firm to provide these services. My work is on hold.

I do not regret my decision to make layout changes to the first floor unit. I expect to rent this two bedroom unit for over $800 per month and the tenant will pay electric and gas heat.

I now know through my own experience what is required for an investor of a property with three or more units. This will help me better serve real estate investors in Lancaster, PA. My own mistake will help me save my clients time, money and headaches in the future.

You gotta love real estate. You learn something new all the time in this business.

 

 

Posted by

 

 

Living in Lancaster Group

 

An agent who places your interests as his first priority. 
Cal Yoder

Your Homes for Sale in Lancaster Agent

Keller Williams Realty Lancaster

1630 Manheim Pike

Lancaster, PA 17601

Office Phone: 717-735-1145

Cell Phone: 717-413-0744

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Show All Comments Sort:
Mary Macy
Top Agents Atlanta Metro - Roswell, GA
Top Agents Atlanta Metro

Too much governmental regulations to make a living these days, freedom is harder to find, good luck with your buildings.

Aug 13, 2011 03:58 PM
Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

You have a great heart attitude! This too shall pass and you will have a great rental! Focus on the positive!

 

Aug 13, 2011 04:01 PM
Michele Norris
Crystal Realty - Incline Village Nevada - Incline Village, NV
((( Buy or Sell, Call Michele ))) Lake Tahoe NV

Calvin,

Sorry to hear that you're going through this stuff, but look how much more valuable you are going to be to your clients. They'll appreciate your honesty, too. When you refer to 'sealed' architectural and HVAC drawings, what does that mean? I'm not with the terminology 'sealed'.   There are no dumb questions, right?!  Michele

Aug 13, 2011 04:02 PM
Chandler Real Estate Liz Harris, MBA
Liz Harris Realty - Chandler, AZ
#ChandlerRealEstateAgent

Very sorry to hear that you had to go through all of this... I've been there!

Aug 13, 2011 04:03 PM
Kathy Clulow
Uxbridge, ON
Trusted For Experience - Respected For Results

Cal - experience is a great teacher and they are lessons we tend not to forget ..... It is that experience from dealing with hundreds of different circumstances and situations involved in our years in the real estate industry that make our knowledge invaluable to our buyers and sellers

Aug 13, 2011 04:07 PM
Cal Yoder
Keller Williams Elite - Lititz, PA
Homes For Sale in Lancaster PA - 717.413.0744

Mary, I hear you, but I think this has more to do with liability. Everyone is being prudent in protecting lessening their liability. I am a bit frustrated, but also recognize I want folks to do their work to code, so I am accepting this for what it is.

Aug 13, 2011 04:07 PM
Lora "Leah" Stern 914-772-4528
Coldwell Banker, 170 N Main Street, New City NY 10956 - New City, NY
Real Estate Salesperson

Cal - You seem to have the art of "making lemonade out of lemons" - down pat.  Always looking at the positive my firend!  Kudos to you and hope the rest of the renovations go smoothly minu any additional complications.

Aug 13, 2011 04:10 PM
Cal Yoder
Keller Williams Elite - Lititz, PA
Homes For Sale in Lancaster PA - 717.413.0744

Joni, you definitely have the gift of encouragement. Thanks.,

Michele, no there are no dumb questions. Sealed means "stamp of approval" or the verification of the drawings by an architect or engineer. These professionals now have skin in the game. It is kind of like having a building inspector provide an inspection report which we rely upon as real estate professionals..

Thanks Liz.

Kathy, I have found experience to be the best teacher. It does make us a better asset to our clients.

Cal

Aug 13, 2011 04:11 PM
Cal Yoder
Keller Williams Elite - Lititz, PA
Homes For Sale in Lancaster PA - 717.413.0744

Leah, gotta love lemonade. I will post some great pics of the renovations. Looking forward to getting to that point. :)

Cal

Aug 13, 2011 04:13 PM
Florida Tolbert Team Keller Williams Advantage
Keller Williams Advantage III Realty in Lake Nona - Orlando, FL
Keller Williams Land Luxury Division Specialist

The day you can stop learning is the day you die.  And that day you can also stop paying taxes.

Aug 13, 2011 05:00 PM
Cal Yoder
Keller Williams Elite - Lititz, PA
Homes For Sale in Lancaster PA - 717.413.0744

If you put it that way, Kevin, I, welcome the inconvenience. :)

Cal

Aug 13, 2011 10:49 PM
Roy Kelley
Retired - Gaithersburg, MD

It sounds like you have very strict code requirements in your area and that could be a very good thing. Good experience that will help you to provide timely advice for your real estate investors.

Life is good!

Brookside Gardens photograph by Roy Kelley.

Aug 13, 2011 11:56 PM
Mimi Foster
Falcon Property Company - Colorado Springs, CO
Voted Colorado Springs Best Realtor

(Those are certainly beautiful wings, Roy ;) )

This is the way that we get really good at what we do.  My husband and I owned many downtown Colorado Springs rentals over the years, and there weren't many days that passed that we didn't learn something new.  Those 'something news' were a huge help in finding my niche and being able to help my clients because I had personally been thru it, which is exactly what is happening to you right now. 

Unfortunately, what happened here was that it all depended on the mood of whoever was working at Regional Building on any given day.  While it is supposed to be regulated, we got different stories and results with each different person with whom we worked.  Best of luck.  I completely empathize.

Aug 14, 2011 01:12 AM
Cal Yoder
Keller Williams Elite - Lititz, PA
Homes For Sale in Lancaster PA - 717.413.0744

As a whole the codes are good, Roy. Again nice pic.

Thanks Mimi. You are right it does help one find a niche. In a sense you are correct that it does depend on who you talk to. I removed a set of stairs to the basement to get more floor space and this decision meant structural changes which required the sealed drawings. I will get through this very soon, I hope!

Cal

Aug 14, 2011 01:30 AM
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Going through all the "red tape" can be a pain Cal, but I'm sure it will be worth it in the long run.  Best to you my friend!

Aug 14, 2011 01:44 AM
Cal Yoder
Keller Williams Elite - Lititz, PA
Homes For Sale in Lancaster PA - 717.413.0744

Yes Roger the red tape can be kind of maddening, but well worth it. Best right back at you my friend!

Cal

Aug 14, 2011 04:41 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
The best agent in Southern Utah!

Cal, It's great to stretch yourself and learn more regarding the process because it WILL make you a better agent because of your experience! Well done on taking a positive stance on this.

Aug 14, 2011 05:04 AM
Cal Yoder
Keller Williams Elite - Lititz, PA
Homes For Sale in Lancaster PA - 717.413.0744

Wanda, experience is indeed the best teacher and it is always more fun to see the glass half full, right?

Cal

Aug 14, 2011 05:20 AM