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Hello,
I own a 2000 sf home on a 5800 sf lot in Los Angeles, Ca. It is zoned R3 which allows the property to have a unit on it for every 800 sf of land. I am interested in tearing down the house because it is old and needs a lot of work and rebuilding a 1400 sf 3 bdr home and in the rear of the lot constructing 3 1 bdr rental units. I want the home to be a stand alone property and the other 3 units can be connecting, because i plan to live with my family here. I want to know what is the best way to get this done as far as funding, plans, construction, etc. If you have any advice or have had a similar experience please give me your input. I would definitely need some financing to get this done. Thanks in advance.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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I'd make a visit to the local building authority first. To me, an R3 zoning would mean 3 units, not 4, but I'm not familiar with the LA zoning ordinance.
You will need plans from an architect at some point, but you should be talking to lenders (most likely a Savings and Loan) to see whether they do construction financing or not. If you find one, you will probably need to have your plans for them to approve (And for the permits).
It can be up to 7 units on my lot. However anything over 4 is considered commercial. I went to BofA today and they told me the Big 4 (Bank of America, Wells Fargo, Chase and Citibank) havent been offering construction loans for about 5 years now. The only thing they offered is an equity line of credit. Which would not be enough. My total estimated sf (just an idea) is 3500. At $150 a sf its an estimate of around 600K. I spoke to a contractor today who said it was too difficult without structural drawings to give an estimate. But he did mention that with a 7 out of 10 in quality of materials it could be around $275 to $325 a sf.
My lender at BofA said they do have construction loans. Now, for a multi-family (investor) property that might be another thing. Surprised yours said they don't offer it.
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