Last week, I mentioned that I was at the last few days of my Due Diligence Period (where I took a look at the property in Harrisburg and had to make a final decision on whether to move forward or not).
This is both an exciting and a scary time - for someone who is exploring just re-starting home building again (after a hiatus of about 8 years).
In case you just joined my weekly newsletter - I'm taking you inside the mind of a Home Builder (me) who is exploring a lot in uptown Harrisburg, PA. It is actually 3 lots that could take a triplex unit (3 units of 16' wide).
Well - the deadline has passed - and a decision had to be made.
So - what did I do?
After much deliberation, a few sleepless nights, and some conversation with a few of you.... I decided to move forward with the purchase of the lot and stay under agreement.
Now - WHAT I build is still up in the air.
"Homebuilder Finance Logic" says that I should "maximize the highest and best use of the land."
This means that I should pack in as much as is allowable. In this case, that would be a triplex unit - allowing me to sell three separate homes to Buyers.
This would bring the building within 4' of each side yard (minimum setback requirements) and fully use up the space. The one side of the lot borders an alley, but the other side has a pretty big duplex on it - and a triplex would bring my potential building very close to it.
Again - it's allowable based on the lots that exist.
But, here's my concerns:
That is a lot of building on that small lot. And most other homes on the street are either duplexes or single family detached. Would this be too big for the area and really stick out?
A triplex building is going to be (wait for it....) three times the needed construction loan to do so. And that's really scary when you're just re-starting to build.
Can I make a triplex building that truly looks like it belongs on the street (instead of a "new construction" look that sticks out like a sore thumb).
So - right now - I'm thinking I might just do a single family home that fits into the neighborhood and matches the look of so many of the existing homes (many that have been built in the early 20th Century).
Below is what I'm thinking about building. What are your thoughts (on the plan OR building only a single-family vs. a triplex)? Hit that REPLY button and let me know!