Property Renovation and Conversion Feasibility Study

What a good one includes

• A detailed review of local zoning bylaws, including setbacks, height limits, lot coverage, and parking requirements specific to your parcel.
• An assessment of existing utility capacities and the estimated connection fees or system upgrades required for water, sewer, and electrical lines.
• An itemized estimation of construction costs alongside soft costs like design permits, engineering fees, and a healthy contingency buffer.
• Current local market data showcasing comparable rental rates for similar renovated properties or ADUs in the immediate neighborhood.
• A clear financial pro forma modeling cash-on-cash return, projected net operating income, and estimated return on investment.
• A preliminary site sketch or spatial analysis demonstrating how the proposed footprint physically fits within the property boundaries.

Common mistakes to avoid

• Relying on generic national per-square-foot construction averages rather than obtaining localized, updated labor and material quotes.
• Overlooking local parking mandates, which frequently stall or completely derail multi-family and ADU conversions during the municipal review process.
• Assuming existing electrical panels and sewer lines can handle the load of an additional unit without verifying utility upgrade costs upfront.
• Neglecting to account for soft costs such as architectural plans, environmental testing, structural engineering, and city permit fees in the overall budget.

Frequently asked questions