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Site walk at our 12 unit project in Normal Heights

#constructionmanagment #projectmanagement #developer #adu #multifamilyrealestate

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Tasteful development matters…

This is an 11 unit project in North Park San Diego.

And when you look at what you should build on a project here

There’s a lot of things you can do.

There’s no right answer.

This developer chose to build 11 units total.

I have projects I’ve built 15 units on the same sized lot.

Generally less density leads to more comfortable living

But it’s all relative

11 units here made the deal make sense, and now there’s going to be 11 people, 22 couples, or maybe even more that get a place to live.

If the numbers didn’t support it, there’d be no additional housing here.

If you want to know what SHOULD be developed on your lot - DM me “BACKYARD” and we’ll take a look

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Closing out phase 2 of this project for our client @cashflowalexio

Built 4 ADUs in the backyard of this unique lot on Baja Dr in the SDSU area.

One thing that I like about building for Alexio is that he adds a little flavor to his units. I think the finishes came out pretty nice on this one. What do you think?

#multifamilyrealestate #sdsu #adu #sandiego

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Our Permits just got approved, we broke ground and have officially started construction on our development project here in San Diego.

This permitting process has been a challenge and has taught us a lot so we are really excited to enter into the next phase of this development and get one step closer to accomplishing the goal that we set out to achieve. The lessons and skills that you are able to obtain taking a project like this on are priceless. We still have a long way to go but definitely grateful to be where we are at.

Shout out to our partner Garrett and our construction team Reuter Group Inc who are helping us take this to the finish line. Let’s get to WORK!

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This is a new construction 9-unit project in North Park, San Diego. How do you estimate what it’s worth?

If each unit rents for about $2,400 per month, that’s:
9 units × $2,400 = $21,600 per month
× 12 months = $259,200 per year in gross income

Now we account for vacancy and operating expenses.

If we assume roughly 35% combined, that leaves us with about 65% of income as net operating income.

That gives us an NOI of around $168,000 per year.

For similar new construction in this area, let’s say it trades around a 5.3% cap rate.

$168,000 ÷ 0.053 = estimated $3.1M to $3.2M valuation.

That’s how commercial real estate investors quickly estimate value.
Income first.
Expenses second.
Cap rate last.

Follow for more real estate breakdowns and share this video with someone who could use it

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These Garage Conversions are coming out great and the crews are crushing it out in this heat.

If anyone is planning on building soon. Send a DM and let’s work together 🤝🏼 👷🏻

#constructionmanagement #construction #projectmanager #adu #sdsu

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From 1 unit to 9 units in University Heights, San Diego.

This property sold in July 2022 for $1,250,000 as a single-family home on a roughly 5,700 SF lot with RM1-1 zoning.

Now it’s in the construction phase and becoming a 9-unit property.

Here’s the breakdown:
• Existing main home
• Garage conversion
• (6) 1 bed units around 400 to 450 SF
• (1) 745 SF 2 bed with a deck

The lot is not huge, but the floor area ratio allowed them to build close to the max. That is where the equity unlock happens.

The smart move was keeping it to 2 stories instead of 3.

Going 3 stories can increase costs around 10% per foot:
More structural reinforcement
More concrete and scaffolding
2x6 framing instead of 2x4
Plumbing lines and venting need to be cast iron (3x the price)
Higher-skilled, more expensive labor

By staying at 2 stories, they reduced construction costs and risk while still leaving room in the back for parking.

The formula for success here:

Get into the deal at a lower basis as a single-family home purchase.

Keep the home and renovate instead of demolishing it.

Max out the density.

Make smart, cost-effective construction decisions.

That is how the owner created a big equity swing and long-term cash flow from a small infill lot.

If you want to find projects like this in San Diego, send me a DM.

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Utility coordination can make or break a project.
After 18+ months of permits, building, and working with SDG&E and having a handful of different inspectors on site for multiple inspections, a new SDGE inspector with fresh eyes came to the site for final inspection and caught a clearance issue that should’ve been flagged on day one.

Lesson learned: always verify utility access in the field — not just on paper and verify that your vendors, and utility companies are following the correct requirements to pass final.

Has anyone ever experienced this before? Curios on how it was handled and what SOP’s they put in place to prevent from happening in the future.

#ChrisThePM #ConstructionReality #ADUDevelopment #MultifamilyDevelopment #UtilityCoordination #SDGE #ConstructionLessons #ProjectManagement #JobsiteLife #developerproblems #ADU #SanDiegoConstruction #ProjectManagerLife #ConstructionLogistics #sandiegobuilder #utility #electricalproblems

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Building ADUs or adding units in San Diego? Here’s the part nobody budgets for.

When you attach new units to an existing structure, the city triggers full fire sprinklers in the old building too — even if tenants still live there.
That means ceiling demo, insulation removal, sprinkler lines, inspections, full attic insulation… and a two-week tenant relocation to get it done right.

Most builders don’t plan for it.
Most investors don’t underwrite it.
But the inspectors will require it.

Do not ignore this scope.
Plan it early. Budget it correctly. Execute it clean.

#ADU #SanDiegoConstruction #MultifamilyDevelopment #ProjectManagerLife #FireSprinklers #ConstructionLogistics #sandiegobuilder

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Near SDSU, it is common to renovate homes to add bedrooms and build backyard ADUs.

On deals where this value-add is done, comps support cap rates near 5.6-5.8% and a price per bedroom of about $190k-200k

So for this property, what looks like a mound of dirt will soon be around $1.4 million in added value.

The unit mix of a 5 bed 2 bath ADU attached to a 2 bed 1 bath is my favoririte because it has a great second level rooftop deck and generates strong rents compared to the lower construction costs.

You might spend about $700,000 to build this to gain $1.4 million in property value

When a bedroom costs $100,000 to build and then gives you $200,000 in property value, it could be a deal worth looking at.

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A year in, and this project has thrown everything at us — from uncovering an old pool underground 🏊‍♂️ to navigating gas + electrical lines ⚡️, and even a massive right-of-way job

Big hurdles, bigger solutions 🙌 It takes a team that knows how to adapt and push through to the finish line.

If you’re taking on a complex project and need experienced partners, send us a DM — we’ve been there. 🏗️

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Investing in development deals is seen as riskier than the stock market or bonds. But an effective operator should be able to reduce risk on a project and there are several different types of benefits of owning large properties 🏙️

Development involves forced appreciation when your all-in construction costs are lower than the appraised values in the area 🏠

These properties can cashflow when you have a sufficient amount of equity in the deal and strong rents in the neighborhood 💴

And although real estate in coastal cities tends to appreciate over the long-term, there are several tax strategies that involve depreciating these assets to reduce your tax liability 📉

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