Shop Quest - Moving Forward With (Yet Another) Offer [UPDATED]

"Akio Ohtori - RIP Oppo" (akioohtori) 01/25/2019 at 17:15 • Filed to: shop quest, TQ HQ

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[UPDATE 4:00PM CST] Realtor (finally) got back to me. The seller has received two $20k offers and refused them both. Seller’s realtor thinks high 20s or 30k even would take it. I’ve requested she put in a $27k offer and see where that goes. She is, however, concerned about zoning, so we might hop on the phone in a few to make sure my architect is on the up and up.

Original Post from 1/25/19 @ 10:30AM CST:

I’m nervous. My hands are sweating, my stomach hurts, and I want to go home. So either work is doing another re-org, or I’m looking at spending a whole bunch of money. (Hint: It is the latter.)

The current contender was mentioned in the last write up as the weird outlier. It is a 0.38 acre lot in the heart of town, listed for $40,000, but in a meh area and has three structures that need to be torn down, including the house.

Questions abound, I hired a architect to see what is technically possible in a zoned residential area. Turns out: a surprising amount! Apparently I can build a “house” with an 8 car garage, no problem. The definition of “house” is apparently pretty lenient. Essentially a studio apartment attached to the shop would count, which is what I would have wanted to build anyway.

That feasibility done, I need to get ballpark quotes for removing the house, and then put in an offer. I’m trying to get both of those things done by the end of the weekend.

I’m nervous.

The problem with building vs buying pre-built is is hamstrings my budget a little. That said, as I can afford to buy the land outright, doing a construction loan is much more possible as I can buy the land, tear down the structures, and then take all the time in the world getting my ducks in a row on construction funding.

But still nervous.

Will keep you guys posted on how this manages to fail spectacularly. (I kid, but I always manage to pick the dumpster fires...)

Imma look at dream garages to calm my nerves.

davesaddiction @ opposite-lock.com > Akio Ohtori - RIP Oppo 01/25/2019 at 11:57

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[puts rational hat on]

In all of this, consider what it will be worth if/when you eventually sell it.

The demand for something like you’re thinking of building is likely very low, so you likely won’t get out in the end what you’ve put into it.

Just make sure you’ve got your eyes open going in.

Mid Engine > Akio Ohtori - RIP Oppo 01/25/2019 at 11:57

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I took the pl unge and closed on 12/31, bought 7.2 acres. Now the patience thing kicks in as it’s going to take time to fund a 40' by 60' shop

Akio Ohtori - RIP Oppo > davesaddiction @ opposite-lock.com 01/25/2019 at 12:04

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Yeah that will be a conversation throughout, for sure . The plan is to build it to be easily converted to a commercial property. The “apartment” will be built in front and in such a way as it could easily be converted to a waiting room/ front office. The area is very commercial adjacent and there is some speculation it could convert in 10 years or so.

But yeah, grain of salt is good.

The nice part is the immediate area is shady, but you can’t complain about the location. 26th and Harvard? I’ll save the extra in time and gas with a location like that haha.

But yeah... I don’t like the idea of sinking money into so many unknowns.

davesaddiction @ opposite-lock.com > Akio Ohtori - RIP Oppo 01/25/2019 at 12:13

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If you can get it for stupid cheap, considering how much houses can go for in the square mile to the west, you’ll probably be fine. I wonder how much restriction the bank would put on what you’d build.

Would you rent the apartment to a friend, or Airbnb it? 

Akio Ohtori - RIP Oppo > davesaddiction @ opposite-lock.com 01/25/2019 at 12:18

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I’d consider both, but not count on either. Having a tennant would be cool for security reasons, but it would have to be a friend or fellow understanding petrolhead as I’m not super in to the whole landlord thing.

davesaddiction @ opposite-lock.com > Akio Ohtori - RIP Oppo 01/25/2019 at 12:25

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The price disparity on either side of Harvard is just insane here...

Yeah, if you had a renter, it’d definitely need to be a friend, because you’d probably want the ability to hang out and grab a beer or use the bathroom while you’re there. Like-minded, fellow gearhead might work - would be a sweet setup for a single guy with a couple cars. I’m guess any apartment with a 2-car garage is $$$.

punkgoose17 > Akio Ohtori - RIP Oppo 01/25/2019 at 12:35

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Looking at dream garages is fun. The good part, the structures mean the lot already has water, power, and sewage.

Akio Ohtori - RIP Oppo > davesaddiction @ opposite-lock.com 01/25/2019 at 12:39

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Hmmm good point.  I hadn’t thought of letting the renter use a couple bays, but that makes sense.  Probably makes sense to build in some provisions for a shop bathroom too, even if I don’t build it out.

davesaddiction @ opposite-lock.com > Akio Ohtori - RIP Oppo 01/25/2019 at 12:42

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Just depends if it’s someone you trust enough to give them access to the rest of the shop. Having the hookups for an additional bathroom in the shop, if necessary, is definitely a good idea. 

Akio Ohtori - RIP Oppo > punkgoose17 01/25/2019 at 12:42

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Yeah.  That was a huge part of the cost of most everything else I’d looked at.  The utilities are also on the way back corner which is... a thing anyway.

facw > Akio Ohtori - RIP Oppo 01/25/2019 at 12:46

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You should see if you can donate the house to the local FD so they can burn it down for training (it’s probably too close to neighboring houses, but doesn’t hurt to ask) . This won’t save you any money on demolition, since a lot of stuff will remain, but you could get a tax break, help your local FD, and more importantly, it would be cool to watch it burn.

Akio Ohtori - RIP Oppo > facw 01/25/2019 at 12:48

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Yeah... I’d think it is too close to everything, but worth considering ! Thanks!

gogmorgo - rowing gears in a Grand Cherokee > Akio Ohtori - RIP Oppo 01/25/2019 at 13:46

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Tearing down buildings is fun. I recommend renting a medium-sized  excavator, loader with a grapple, and a tandem dump truck.

TheRealBicycleBuck > Akio Ohtori - RIP Oppo 01/25/2019 at 13:56

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If you’re building in a residential zone, don’t count on a later conversion to commercial. You’d have to request a variance and that may or may not happen.

Instead, consider limiting the number of exterior garage doors and the size of the driveway. Make the interior floor all concrete so it can be used as garage space, but include the standard plumbing so it can be easily converted into residential space if/when you decide to sell. If you must have lots of garage doors, use either pavers or geogrid for the driveway to those doors. It will be easier to convert it to residential by building out the wall in the extra door space and removing the pavers. Geogrid would be even easier since it’s designed to support the weight of a fire truck yet allow grass to grow through it. Just make sure those bays don’t get as much traffic so you don’t kill the grass.

shop-teacher > Akio Ohtori - RIP Oppo 01/25/2019 at 15:38

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You’d be surprised.  My town has been buying up houses in a flood prone part of town and razzing them to make them drainage detention areas.  The local FD always burns them down for training, and this is in a suburban 1/4 acre lot neighborhood. 

shop-teacher > Akio Ohtori - RIP Oppo 01/25/2019 at 15:40

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Good luck dude!

You should buy your real tor a nice gift when you’re finally done with this :)

Akio Ohtori - RIP Oppo > shop-teacher 01/25/2019 at 15:49

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Yeah, especially if I end up buying this.  I feel bad she is looking at a low 4 figure commission at best.

I like cars: Jim Spanfeller is one ugly motherfucker > Akio Ohtori - RIP Oppo 01/25/2019 at 16:27

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An eight car garage with a studio apartment above is a very Oppo type of house. Do you plan to actually live there or just throw cars in it?

shop-teacher > Akio Ohtori - RIP Oppo 01/25/2019 at 16:40

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Yeah, the kind of money you’re looking to spend does not net a big commiss ion.

Akio Ohtori - RIP Oppo > I like cars: Jim Spanfeller is one ugly motherfucker 01/25/2019 at 16:45

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The latter. The biggest problem with the project has been I like my current house and location, but have 0 room to expand and live in a historic preservation district, so even if I could afford a neighboring lot, I wouldn’t be permitted to build something like this.

Akio Ohtori - RIP Oppo > shop-teacher 01/25/2019 at 16:47

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I take some comfort that she knew that going in. She was my real tor for my house proper and I initially didn’t engage her on his.  When I was talking with her on an unrelated project I mentioned it and she said she’d be happy to help, despite that I was looking at low cost, sketch ass properties.

Manwich - now Keto-Friendly > Akio Ohtori - RIP Oppo 01/25/2019 at 17:44

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Well if $20K wasn’t enough, how about $20,001?

/jk

Spasoje > Akio Ohtori - RIP Oppo 01/25/2019 at 17:44

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I gotta ask where this is? Reason being, if y o u spend ten t i m e s a s m u c h , y o u c a n ’ t e v e n g e t a d e c e n t a p a r t m e n t w h e r e I a m . . .

Akio Ohtori - RIP Oppo > Spasoje 01/25/2019 at 17:50

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Haha Tulsa, OK. Stuff is cheap here, for the most part.

F or the lulz I was looking at a $ 7.5M house, the highest I’ve seen in the city . For that you get a little over 17 ,000 sqft, and 2 acres in one of the priciest neighborhoods in the city.

MM54 > Akio Ohtori - RIP Oppo 01/25/2019 at 18:06

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Hope it works out for you!

I schemed out a ‘dream garage’ addition a little while back, but I don’t expect to live here long enough for it to be worth the expense/time (miserable-ass climate, I want to go south ).

BrianGriffin thinks “reliable” is just a state of mind > Akio Ohtori - RIP Oppo 01/25/2019 at 18:22

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Good luck, man...just don’t get in over your head. If it’s really in the middle of Tulsa, it seems like a good deal (though the photo is shady as fuck). 

shop-teacher > Akio Ohtori - RIP Oppo 01/25/2019 at 20:07

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Business is business. My mom was a realtor for years. A lot of her co-workers wouldn’t touch the little jobs . My mom knew better. She once made $100 doing a rental contract for a guy’ s condo. A couple years later, he bought an $850k house with her. A few years later, he used her to sell it for damn near a million.

Spasoje > Akio Ohtori - RIP Oppo 01/25/2019 at 21:10

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Here in Vancouver, BC, $7.5m gets you a waterfront property with its own dock....but the lot is like 21k sqft, and the house itself is less than 4k sqft.

I do like that it has a legit library and a 997.2 with a roof rack parked out front. Not included, of course, but still...