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Author's Posts

January 21, 2008

Adding Another Floor- Cost?

I'm considering a purchase of this two family around the Grand stop on the L line. What I would like to do is add one or two stories to the building.
The FAR as built is 0.62
and the Max FAR allowed is 2.43 so the maximum usable floor area is 6,075 sq ft (lot size is 2,500). My knowledge of construction costs is limited so I was wondering roughly if anyone knows the costs to add one or two stories to an exsisting structure and other elements that I should be concerned with. I would live in one unit and rent out the others. Can probably purchase the unit at around $700K.
- 1930's building.
- Current SQ Footage 1,560
- Current mechanicals in good condition.

Thanks in advance for any guidance you can give.
dgreen

Author's Comments

I'm thinking about using Heimer Inspectors. Can you tell me what your experience was using them...good/bad/indifferent? Also if you are comfortable sharing what was the cost for the inspection?

I'm looking at several properties in Williamsburg/Greenpoint and really need an excellent inspector.

Thanks in advance!
Dan

Posted by: dgreen at January 21, 2008 9:38 PM in response to Pre-contract inspection revealed several issues- what would you do?

Thanks everyone for the feedback. Yes, I need to confirm the FAR via an architect.

As I understand it (11:30AM) a four-storey building zoned as 4 apartments would require a commercial loan which would mean 1/3 downpayment and a higher interest rate...something I can't afford. It actually might be cheaper and I could finance more building it out. I would need to run all the numbers once I have more info.

Actually not too many 3-4 apartment houses in williamsburg that seem affordable...at least to me

Posted by: dgreen at January 22, 2008 12:18 PM in response to Adding Another Floor- Cost?

Really (Heatherie)- I've been told that with a 4 family you definately need to get a commercial loan.

Posted by: dgreen at January 22, 2008 5:43 PM in response to Adding Another Floor- Cost?

ArmChair-

Talking about good old Jose? Yeah- pretty lame. I pretty much have to stalk him. He told me that the owner never gets back to him either and he has trouble getting a clear answer from them so...

Where did you end of buying?

Posted by: dgreen at January 23, 2008 10:35 AM in response to Adding Another Floor- Cost?

No worries OP...on to the next potential purchase. We all learn by doing so no big loss in the long run. Good luck!

Posted by: dgreen at January 27, 2008 10:35 PM in response to Pre-contract inspection revealed several issues- what would you do?

Responses to Author's Forum Comments

To answer the question about construction cost, you could use a ballpark figure of $160 to $180 per square foot for purposes of an estimate, considering frame construction. $250 is more like Manhattan prices.

What is the zoning category for the building?

Posted by: Smokychimp at January 22, 2008 1:50 PM in response to Adding Another Floor- Cost?

Whether or not there are any available is a different matter, but a 4-story, 4-apartment home is still considered residential by lenders. It does have a slightly higher mortgage recording tax though. Our experience has been that 5-family is where the "commercial" issue starts to kick in.

Posted by: Heatherie at January 22, 2008 3:00 PM in response to Adding Another Floor- Cost?

4 stories doesn't mean 4 family

Posted by: guest at January 22, 2008 4:05 PM in response to Adding Another Floor- Cost?

Dan- OP here. Heimer was fine. Seemed to be relatively thorough (but I have no point of comparison really). The report was 80+ pages long and pretty alarmist, but I did follow up with a question to the actual inspector and he explained things more thoroughly (on a particular point). They charged us $855 for a 3 story plus underground cellar.

Thanks to everyone for the comments. As it turns out, we did ask for $10k in what I thought was a very nicely worded email (as in, kindly worded) and the seller's response was "the deal is dead". We have no idea whether he was just looking for an excuse to get out, or what. The agent said he took offense to it b/c of the amount of work he had already done.

So... all things considered, I'm pretty regretful that we asked for anything. And I guess I'm a bit upset at how alarmist that inspection report was, all things considered. If you can read those reports with a strong grain of salt, I would recommend it. WE are first time homebuyers and pretty shocked that we are potentially losing the place over a $10k ASK (we didn't even demand, just asked, nicely, and explained how we were going to eat a bunch of the costs ourselves, yadda yadda).

Anyway, we have the contract so we are signing it tomorrow and hoping he reconsiders once he has a signed contract in hand. But clearly we might lose the place over something very trivial.

I tell this story in the hopes that it might help another couple wondering what to do with the inspection report. Our situation doesn't apply all the time of course, but I guess we are living proof that it really is a gamble. (Incidentally, I do not AT ALL understand how a seller can be soooo emotional that just a request for $10k kills a deal. I suspect there was a backup offer that was more attractive anyway).

Posted by: guest at January 22, 2008 5:20 PM in response to Pre-contract inspection revealed several issues- what would you do?

Really (Heatherie)- I've been told that with a 4 family you definately need to get a commercial loan.

Posted by: dgreen at January 22, 2008 5:43 PM in response to Adding Another Floor- Cost?

Smokychimp, the $250K referred to above is $250,000, not $250 per square foot.

And if you can find someone to do the work for $160/sf, I'd be scared of the quality. That's a pretty normal price for just an interior renovation job, not including an entirely new structure and roof and stairs, etc.

Scary.

Posted by: guest at January 22, 2008 8:18 PM in response to Adding Another Floor- Cost?

btw how did you get a hold of the sales person. for a whole spring/summer i try to reach them LOL.

i was trying to get this place before my current purchase. but the sales person never ever bother to call me back.

Posted by: armchairwarrior at January 22, 2008 10:54 PM in response to Adding Another Floor- Cost?

Strange as it may seem, new construction can be simpler than finish work patching/matching involved in interior renovation jobs, so can actually be less expensive.

Posted by: Smokychimp at January 22, 2008 11:11 PM in response to Adding Another Floor- Cost?