The quest for the shop

[ohsixspeedsix]

As some of you may know, I have been trying to get a business going. I am in the area of custom car moddification, with the main project being the miata and doing other things on the side (spoilers, lips, shaves, etc.) Problem is, I am limited on my work for about 4-5 months a year thanks to this cold snowy state and not having a nice heated decent sized garage. I've been considering things from abandoned shops, to garages at the Automotorplex. Unfortunately they are either too expensive, or just don't cut the mustard.

So my new idea after discussions with several people, is to start looking for a smaller house with either a fair garage, or space to build a garage. Something that my investor could buy out, and I would pay rent to stay there (maybe with a roommate) and work on a regular basis. This thread is to hopefully get feedback and/or any finds that might help me out. Including other options.

I do this because I have found a place that IMO is pretty damn near perfect for what I'm loooking for. http://www.results.net/Property/MN/55429/Crystal/5640_Brunswick_Ave_N . The small place is in Crystal, bout 5-10 minutes away from AJ coincedentally, 3 car heated and insulated garage, and a shit ton of driveway. And the price is definately right.

So any imput on this is appreciated. Is this something worth investing in that would be low risk enough? Is the area good for security, crime, and such? blah blah blah.

 

[dmention7]

Wow, Seeing the price on that house makes me all sad panda. If that's what that kind of place is going for these days, every mortgage payment I make is going right in the trash.

Anyways, it's a decent area--very close to plenty of shopping and restaurants. Good freeway access--just a couple miles frome 694, 100, and 169. While there are certainly better neighborhoods, I personally wouldn't be worried about crime and safety. The major downside is that you'd be right off the runway for the airport in Crystal, and there would be a lot of road noise from 81. Granted, it's all small planes at that airport... but if you're serious about it, I would head out there and get a feel for the noise level. Maybe hang out for an hour or so and see how many planes actually land and take off.

There's also a railroad not too far to the south. Again, not terribly busy from my experience, but you will probably hear the horns when the trains cross broadway (81 is a bridge over the tracks).

 

[Workdawg]

If airplanes and trains are the major concerns, sounds like a winnar for a live-in shop... lol.

I grew up a couple miles from Flying Cloud Airport in EP, as well as a handful of miles from a set of train tracks (I live closer to those train tracks now) and neither of them has ever bothered me.

If your looking for a place to set up a shop, sound pretty good to me.

I don't know if you're planning on doing the whole "service and fab" thing like you mentioned with the autoplex idea, but I would bet zoning would be an issue in that case.

 

[mndsm]

^ what he said. Running a business like that on a commercial basis out of a garage can run into issues. I'd check into the laws before I bought in.

 

[dmention7]

Where you'd run into trouble is if you're taking in customer cars and doing work on their car on your property. I don't know about Crystal, but Minneapolis is srsbzns about cracking down on unlicensed garages. (I think I had an undercover cop ask me to work on his car one day when I was doing brakes with my garage door open)

However, if you buy a car, fix it up, and then sell it, that's all legit. Same with fabbing up parts and stuff. The issue comes if you're working on cars that you don't own for the purpose of making a profit.

 

[Turbotalon1g]

Nice place, those ceilings look really low in the garage from the one inside pic they posted.

If you are serious about working on a car though, you will want a lift.

Amazing price for that place.

 

[AJ]

The location seems like ti would be pretty nice for what you want. The price is what is is due to the sheer livable sq footage and short sale. Jay, you can't compare your mortgage payment to this, lol. The house needs some love to get to this century, and to increase value you would need to add on over time. That said, the house would make a good investment and the downfalls listed are not that bad.

The airport sees most of it's traffic on the weekends and they are actually fairly cool to see. They fly right over my place more times than not and for those who have been here on the weekend, think to how many times you have even noticed? The train you'll hear in the area for miles as it sounds off at a crossing, and that only downfall is that sometimes it's later at night, that said, it's quick and over with right away. I think it's a benefit, as if i hear the train, i can adjust my route to avoid being stuck in the back up of traffic on Douglas or another road.

Location wise, it seems to have a nice sized lot. If you wanted more privacy, have a nice fence put up. Something maint free and visually appealing with cost a nice penny, but will be a + when it comes time to sell again. The garage is the sweet deal there, I'd love to have mine finished off with heat for winter work, but I just don't want to spend the coin right now to do it, this is ideal as you can move right in and get started with minimal prep.

As for 5-10 min from me? yeah, if I'm walking over. It's uber close, and I know I'd easily be able to lend a hand when needed. You're also super closer to a part store, Ax-Man, and gobs of shopping and highways. + Wagner's. And Crystal has been spending money to update their community and infrastructure, which is only adding value to the surrounding area.

Depending on streets around you, there will be foot traffic, and not all of it good, but I think there is more upside than downside with that specific property no matter who buys it. I'd be tempted to pick it up as well for an investment property/rental.

 

[ohsixspeedsix]

I'm not really phased at all by the train or planes or any noises. And as far as codes reguarding business and such, i don't think there will be an issue. It's not like im gonna be having loads of cars coming in and out. I'll be working on project cars and building parts. I won't actually technically "running a business." I am really wishing I had the money to do this on my own. Because I am pretty positive that with my tlc and work, I could flip that place easily. Unfortunately I'm having a hard time convincing Steve that its a good investment.

So if you wanna dump in 10k, AJ you'd have a heated garage at you disposal along with other perks. just saying. Lol.

If i were to get at least another person to help invest, id be in business so to speak.

 

[Picklz]

If you get to the point where you're going to go through with it, Get a GOOD inspector to go through the house, old(er) homes can be a nightmare - the money spent to get someone who knows what they are doing can save you a boat-load down the road. Also take into account the age and condition of larger ticket items - Roof, Driveway, Furnace/AC, etc. Those items if near EOL can be huge expenses. Other than that - pretty much echo what others have said, the two biggest issues I can see with it being a 'shop' are the low ceilings and zoning issues, agree if all you're doing is building a custom car then selling it, or building parts to ship out you'll be fine. More than that and you'll probably run into issues fast.

Check comparable listings in the new-hope / crystal area and see how long they've been for sale, and sale prices for recently sold properties (all are public info) - that should give you an idea if anyone is buying anything in the area, and what the property is selling for. I'm not sure if you can get statistics on Homestead vs not in the area, but that will also show you with some degree of accuracy how much property is bank owned or rental property vs people living there. 'Flipping' is a pretty difficult and risky thing now days - especially since you start pushing the value up you need to get after your investment+fee's - and end up going up against much newer/nicer properties in better areas.

My .02

 

[AJ]

So if you wanna dump in 10k, AJ you'd have a heated garage at you disposal along with other perks. just saying. Lol.

The only way I'd buy it is if I'd turn and rent it out. I wouldn't pay another dime in upkeep if it wasn't needed to rent. That being said Picklz brings up the other points, you don't know if you'll walk in and have to address roof or foundation issues. Plumming, appliance updates, and other costs. It is risky unless you get a good inspection and can turn it into a monthly income profit.

 

[ZoomZoom Diva]

I would not be so sure that place is easily flippable. It has most of the disadvantages of the post-war starter homes along with a location that is not the most appealing being right next to a major roadway. Remember also the homestead laws have changed, and in lower-priced housing areas, the sheer credit approach has pushed more of the taxation onto non-homestead properties.