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.
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.
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