Feasibility Plus Reports for Your ADU or Next Construction Project: But what are they?
Updated: Mar 25
AOPTA The Property Tax Experts and WSJ Designs have joined forces to provide property owners with a comprehensive feasibility report that includes a detailed analysis of what can be constructed on their site to maximize productivity and income, or enhance the aesthetics and overall value of the property.
Property development can be a daunting task, and property owners often have many questions about what they can do with their land, what type of construction is allowed, and what the financial implications of any proposed development will be. The team at AOPTA The Property Tax Experts has extensive knowledge of the property tax system and can help ensure that any new development is optimized to minimize property taxes.
WSJ Designs is a team of experienced architects and designers who specialize in creating beautiful and functional spaces that maximize a property's potential. They can provide valuable insight into what type of development will be most beneficial for the property, taking into consideration factors such as zoning regulations, market trends, and local demand.
By working together, AOPTA The Property Tax Experts and WSJ Designs can provide property owners with a comprehensive feasibility report that includes a detailed analysis of what can be constructed on their site. This report will take into account a variety of factors, including local regulations, market trends, and potential financial returns.
The report will also include a market valuation of the proposed project so that property owners are aware of the value of the project at completion. This can be particularly useful for those looking to sell their property in the future or refinance their mortgage.
Â
***Case Study***: Client owned a property in San Diego that included an older single family home and wished to add an ADU (accessory dwelling unit). Our feasibility reports presented the client with two options. The first option was to maximize the land with the highest allowable density of units, which would result in the construction of six two-bedroom, two-bath units. The second option was to opt for a lower density of three larger units, each with three bedrooms and two baths.
Our analysis provided valuable information that enabled the owner to favor the development of the six-unit option due to its higher market value and lower relative risk of the income stream. Although the three-unit option would have been a break-even proposition, the six-unit option provided a 25% cash-on-cash investment return upon completion.
In summary of the case study, the client's property in San Diego presented an opportunity to add an ADU, and our feasibility reports presented the owner with two options for development. Through our analysis, the owner was able to select the six-unit option, which not only offered a higher market value but also provided a more favorable return on investment.
Â
Finally, the team at AOPTA The Property Tax Experts will provide a property tax saving strategy to keep property taxes as low as possible when the project is complete. This is a crucial element of any property development project, as property taxes can quickly eat into any potential profits.
In conclusion, AOPTA The Property Tax Experts and WSJ Designs have teamed up to provide property owners with a comprehensive feasibility report that includes a detailed analysis of what can be constructed on their site, a market valuation of the proposed project, and a property tax saving strategy. This collaboration is a great way for property owners to ensure that any new development is optimized for maximum productivity, income, and value.
Want to build but not sure where to start? Contact us today!