The Chase

I had several RMLS searches set up through a local realtor (thanks Christina!), which I poured over obsessively: one for houses less than $400,000 (“land value” houses); one for houses up to $700,000 (this gave me a good picture of the local market); one for bare lots less than $400,000 (almost nothing came up, ever, but the occasional $1.5M waterfront lot slipped through my search filters and gave me a good jolt -yep, that one’s nice…).

When I saw something in a good location that seemed to have potential, I looked it up on the local GPS map (in Victoria, vicmap), to check the current zoning, the assessed and land values (and compare these to the asking price), and to take site measurements on the aerial map. If promising, we went to see the property; I drew up one or more rough to-scale schemes that might work, and did a very high level financial analysis (cost of land + cost to build – likely sales price – cost of ownership).

If still looking good at this point, I then emailed the local area planner to ask about rezoning potential for a specific lot (most of my schemes involved increasing density on a single family or duplex lot, which kicks it into a rezoning process). I saw the potential in many sites and filled pages and pages of potential schemes – each a little different to suit the property. Many were unrealistic given the likelihood of getting the project approved, but this was all good learning.

I also sought input for any potentials from my “team”. Since beginning my search, I’ve been building relationships and picking the brains of those with more experience, with the intent of hiring them when we have a real project. People like Rob and Mark Bernhardt of Bernhardt Contracting, who built the first two certified Passive Houses in Victoria. And Ian Scott, who is a former City of Victoria planner and now consults on his own. And my architect friend Mark Ashby, of Mark Ashby Architecture, who will ultimately design our project for us.

If we were excited about the property, and neither the area planner nor any of our advisors raised any major red flags, Matt and I talked seriously about putting in an offer. Before we got our property, we talked seriously about two or three properties and made one other (losing) offer.

In a hot market, doing this due diligence up front can be tough, so there is also an element of instinct. After scanning properties for over a year, and drawing up dozens of schemes, I learned what to look for and had a pretty good sense when was a good time to jump. Patience is advised, as it does take time to learn what to look for.