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Module 2 of 7

Qualify Properties

Can this parcel actually be developed, and how much ground do you really have to build on? The technical core of underwriting.

0 / 10 lessons

Lesson 1

Utilities

Not done

Determine, for any parcel, whether it has public or private water, sewer, and stormwater handling, and identify whether gravity sewer feasibility is a go/no-go issue before spending more time on the deal.

Exact steps

  1. Open the county's or city's GIS/property viewer (search "[county name] GIS parcel viewer") and type in the parcel's address or APN.
  2. Check the utilities/infrastructure layer for water lines — note whether it's a public water line or if the property relies on a well (no line visible, rural area).
  3. Check the same viewer for a sanitary sewer line layer — note whether a public line runs near the property, or whether septic is implied (no nearby sewer infrastructure).
  4. Turn on the GIS's contour-line layer (often labeled "topography" or "elevation," usually 2-ft intervals) and visually trace the parcel from its highest point to its lowest point.
  5. Compare the parcel's lowest point elevation to the elevation where the nearest public sewer line sits — low point higher than the line means gravity flow is possible; lower means flag it as a feasibility risk.
  6. Call the city/county public works or engineering department and ask: "Is there a cost-sharing or reimbursement policy for extending water/sewer lines to a parcel, or is extension 100% developer-funded?"
  7. Log what you find (well vs. public, septic vs. public, gravity pass/fail, who pays for extension) in TownshipPro's checklist notes for the Utilities category.

Worked example

Picture a 22-acre parcel on Baker Road in fictional Westfield County. The county GIS viewer shows no public water line reaching the property (only a well icon on the adjacent parcel) and a public sewer line running along Baker Road about 600 feet from the parcel's southeast corner. Contour lines show the parcel's low point sits at roughly 412 ft elevation, while the sewer line's road-grade elevation nearby is about 408 ft — a seemingly comfortable 4-ft downhill margin, assuming the pipe isn't buried unusually deep (which you can't tell from the surface map alone).

In TownshipPro: TownshipPro doesn't yet have a native gravity-sewer pathfinder or utility-distance calculator — that's a planned Phase 2/3 feature. For now, research this manually using your county's public GIS, and log your findings in the Qualification Checklist's Utilities category notes field.

Lesson 2

Getting Creative with Sewer Lines

Not done

When a parcel's surface topography looks like a gravity-sewer fail, verify the actual buried pipe depth and evaluate fill-dirt regrading before walking away from the deal.

Exact steps

  1. Identify the nearest public sewer line to the parcel (from your 3a research) and note its approximate street address or manhole location.
  2. Call the city or county engineer's office (ask for "engineering" or "public works engineering") and say: "I'm evaluating a parcel for development — can you tell me the depth and invert elevation of the sewer line near [specific address/manhole]?"
  3. If they can't answer on the phone, ask whether "as-built" or "record drawings" for that sewer segment are available to request or view — these documents show pipe depth.
  4. Subtract the reported pipe depth from the surface elevation at that point to get the true invert elevation, then compare it to your parcel's low-point elevation.
  5. If the depth doesn't solve the problem, estimate how many vertical feet of fill dirt would be needed to raise the low point enough to allow a gravity connection.
  6. Search "[your area] fill dirt disposal" or "[your area] cut and fill exchange" to see if any nearby grading/excavation projects have surplus dirt they need to get rid of — a cheaper fill source than buying it new.
  7. Log the final depth answer and any fill-dirt estimate in the checklist notes so you don't have to repeat this call on a future look at the same parcel.

Worked example

Back at the Baker Road parcel in Westfield County — the surface contours showed only a 4-ft downhill margin, which felt too thin to trust. A call to the Westfield County engineer's office reveals the sewer line is actually buried 9 feet deep at the nearest manhole, meaning its true invert elevation is roughly 399 ft, not 408 ft — a full 13 feet below the parcel's low point. That phone call alone turned a marginal "maybe" into a confirmed "yes, gravity works," without moving a shovel of dirt.

In TownshipPro: Not built in TownshipPro yet — there's no native depth-lookup or fill-dirt estimator. For now, make the engineer's-office call manually and log the depth you're quoted in the Qualification Checklist's Utilities notes field.

Lesson 3

Capital Improvement Plan (CIP)

Not done

Find a jurisdiction's published Capital Improvement Plan and identify any funded utility-extension projects that could turn a currently-stranded parcel into a buildable one.

Exact steps

  1. Search "[city or county name] Capital Improvement Plan" or "Capital Improvement Program" — most jurisdictions publish this as a downloadable PDF on their public works or finance department webpage.
  2. Open the document and find the infrastructure project list, usually organized by category (water, sewer, streets, parks).
  3. Scan specifically for sewer or water line extension projects — look for a project name, a route/map reference, a funding status, and a target year.
  4. Open the project's route map (often a separate page or appendix) and note which streets or parcel areas the planned line will run along.
  5. Read the project's justification text, if included, for phrases like "promote development" or "extend service area" — this confirms the jurisdiction's own stated intent.
  6. Cross-reference the planned route against parcels you're tracking to see if any currently-unbuildable parcel sits along that corridor.
  7. Log the CIP project name, funding year, and affected parcel in your notes so you can revisit before the extension becomes public knowledge to everyone else.

Worked example

A hypothetical Westfield County CIP document lists a "Baker Road Sewer Extension — Phase 2" project funded for construction in two years, with a stated goal of "promoting residential development along the Baker Road corridor." The route map shows the new line running directly past the 22-acre Baker Road parcel from lesson 3a — meaning that parcel, even if it were currently a marginal gravity case, is about to get a county-funded fix for free, and nobody else has noticed yet because the CIP document is 140 pages long and not indexed by address.

In TownshipPro: Not built in TownshipPro yet — there's no CIP ingestion or alerting tool. For now, do this search manually and log any relevant CIP project you find in the Report Generator's notes field or the Checklist's Utilities notes.

Lesson 4

Zoning

Not done

Look up a parcel's current and future zoning designation and state in plain language what broad category of use it allows.

Exact steps

  1. Open the jurisdiction's zoning map (search "[county/city] zoning map" if you don't already have the link saved).
  2. Click on or search for the parcel and read off its zoning code abbreviation (e.g., R-7, C-2, AG).
  3. Open the jurisdiction's zoning code or glossary page and look up what that abbreviation stands for in plain terms (residential, commercial, industrial, agricultural).
  4. Separately, open the jurisdiction's comprehensive plan map (search "[jurisdiction] comprehensive plan map" if it's a different layer or document from the current zoning map).
  5. Compare the current zoning designation to the comprehensive plan's future designation for the same parcel — note any difference.
  6. Write a one-line plain-English summary: "Currently zoned ___, broad use allowed is ___, future planned zoning is ___."

Worked example

The 22-acre Baker Road parcel in Westfield County is currently zoned AG (agricultural) on the current zoning map, but the county's comprehensive plan map shows that same parcel colored for future "Low-Density Residential" — meaning the county has already decided, on paper, that this ground is headed toward houses eventually, even though nothing has been formally rezoned yet. That's a signal worth tracking, not a done deal.

In TownshipPro: Open the Zoning Code Parser and load one of the four preloaded example districts (Clark County WA or Williamson County TX) to see what a parsed zoning designation looks like structurally — this is the tool you'll use for the deeper mechanics in lesson 3i.

Lesson 5

Environmental Constraints & Buildable Ground

Not done

Identify every environmental constraint eating into a parcel's buildable ground and calculate roughly how much usable land is actually left.

Exact steps

  1. Open your region's environmental/slope GIS layer if one exists (search "[your metro area] regional GIS slope map") and turn on a slope overlay.
  2. Note any area of the parcel shown with slopes over 25% — most jurisdictions won't permit building there; treat it as unbuildable.
  3. Open Google Maps satellite view on the parcel, hold Shift and click-drag to tilt into 3D view, and visually look for any creek, drainage channel, or low valley cutting through the property.
  4. Search "[jurisdiction] wetlands map" or "[jurisdiction] conservation overlay map" and check whether any wetland or buffer zone overlay crosses the parcel.
  5. Look at the satellite image or GIS overlay for any visible power line easement or above-ground transmission corridor crossing the property.
  6. For each constraint found, rough-estimate the acreage it affects and subtract it from the gross acreage to get a rough buildable estimate.
  7. If you find two or more serious constraints stacked on one parcel (e.g., creek + steep slope + easement), treat that as a strong pass signal rather than something to engineer around.

Worked example

The Baker Road parcel is 22 gross acres. The slope layer shows roughly 3 acres with slopes over 25% along its western edge, and a creek with an official conservation buffer eats another 4 acres along the southern boundary. That leaves an estimated 15 buildable acres out of 22 gross — a meaningful 32% loss that has to be reflected in the lot-yield math, not in the purchase price assumption.

In TownshipPro: Open the Lot-Yield / Density Calculator and enter your estimated unbuildable acreage directly into the "unbuildable acres" input — this is exactly the number this lesson teaches you to go find manually (TownshipPro doesn't yet auto-detect wetlands/slope from a map).

Lesson 6

Transportation Plans

Not done

Check whether a parcel is crossed by a planned major road so that cost and buildable-ground loss get factored into the deal before making an offer.

Exact steps

  1. Search "[jurisdiction name] Transportation System Plan" or "[jurisdiction name] TSP map" — most cities/counties publish this as a PDF or interactive map on their transportation/planning department page.
  2. Open the map and find the legend — identify the line styles for "neighborhood street," "collector," and "arterial" (collectors/arterials are usually thicker or dashed lines).
  3. Locate your parcel on the TSP map using the address or nearby cross-streets.
  4. Check whether any collector or arterial line crosses directly through or along the parcel boundary — not just a neighborhood street.
  5. If a collector/arterial crosses it, note roughly what percentage of the parcel's width or length the planned road corridor would consume.
  6. If you find one, treat it as a hard negative input: it adds construction cost, eats buildable ground, and does not benefit the subdivision directly — do not value that ground as sellable.

Worked example

The Westfield County TSP map shows a dotted line labeled "planned minor collector" running the full east-west length of the Baker Road parcel, right through the middle. That single line means the developer would have to build this wide, multi-lane road at their own cost, lose the acreage under and alongside it, and still build normal neighborhood streets for the subdivision itself — with zero added benefit to the lots being sold. This is exactly the kind of thing that explains why a parcel sits unsold for years.

In TownshipPro: Not built in TownshipPro yet — there's no native TSP overlay. For now, pull up the jurisdiction's TSP map manually and log whether a collector/arterial crosses the parcel in the Report Generator's notes field, since it directly affects the valuation story in your pro-forma.

Lesson 7

Rezone

Not done

Estimate how likely a parcel's rezone is to be approved, and structure an offer that protects the deal either way.

Exact steps

  1. Identify the parcel's current zoning and the zoning it would need to become — note whether this is a main-category change (e.g., ag to residential) or a subcategory change (e.g., 10,000 sq ft lots to 7,000 sq ft lots).
  2. Open the jurisdiction's comprehensive growth plan map and check whether the parcel sits inside or outside the designated growth boundary/urban growth area.
  3. If the parcel is outside the growth boundary and needs a rural-to-urban rezone, treat the odds as very low regardless of what the seller claims.
  4. If it's inside the growth boundary, or it's a subcategory change, call the jurisdiction's planning department, ask for "the planner assigned to this area," and ask: "Informally, what's your sense of how a rezone application for [parcel/area] would be received?"
  5. Separately, search "[jurisdiction] civil engineer land use" or ask local contacts for a civil engineer who has recently filed a rezone application in that same jurisdiction, and ask them the same informal question.
  6. Ask explicitly about capacity constraints (e.g., "Is there any known sewer capacity issue in this area that would affect a density increase?").
  7. Draft your offer with two prices written in: one if the rezone is approved, one lower fallback price if it's denied — so the deal still works regardless of outcome.

Worked example

The Baker Road parcel is currently AG and the seller wants to rezone it to residential — a main-category change, and the parcel sits just inside Westfield County's growth boundary per the comprehensive plan. A call to the assigned county planner suggests moderate confidence, but a local civil engineer mentions a recent sewer capacity study flagged that corridor as "constrained." Given the mixed signal, the offer is structured at $18,000/acre if the rezone is approved and $9,000/acre as a fallback if it's denied — so the deal still pencils either way.

In TownshipPro: Not built in TownshipPro yet — there's no automated rezone risk scorer or dual-offer contract generator. For now, make these calls manually and log the planner's and engineer's informal read, plus your dual-price structure, in the Report Generator's notes field for this deal.

Lesson 8

Land Use Approval Timeline

Not done

Build a rough stage-by-stage timeline for a parcel's full approval process, from contract to first shovel in the ground, so you can set realistic underwriting assumptions.

Exact steps

  1. List the stages in order: feasibility study, application prep, submission/deemed-complete, decision period, preliminary plat approval, appeal period, construction drawings, construction drawing approval, construction, final plat recording.
  2. Assign each stage its typical duration: ~90 days feasibility, 30–60 days application prep, 30 days deemed-complete, 120 days decision, 14 days appeal, 60–90 days construction drawings, 60–180 days drawing approval.
  3. Add the low-end numbers together, then add the high-end numbers together, to get a best-case and worst-case total (roughly 12–18+ months before any horizontal construction starts).
  4. Mark "Construction Drawing Approval" as the true "can start digging" milestone — not preliminary plat approval, which only approves the 2D layout.
  5. Note the preliminary plat's 2-year expiration date on your timeline, plus the extension rule (commonly up to 3 one-year extensions, 5 years total) as a hard deadline to track.
  6. Search "[jurisdiction] land use application requirements" or call the planning department and ask: "Does a public hearing before City Council apply to this type of subdivision, or is it staff-level approval only?"
  7. Write your final best-case/worst-case date range into your deal notes so anyone reviewing the pro-forma knows when to expect "shovel ready."

Worked example

For a hypothetical 40-lot subdivision starting contract today, the best-case timeline (90+30+30+120+14+60+60 days, roughly 404 days) puts construction-start around 13 months out, while the worst-case timeline (90+60+30+120+14+90+180 days, roughly 584 days) pushes it to about 19 months out — a roughly 6-month swing driven almost entirely by how long the construction-drawing approval back-and-forth with the city engineer takes.

In TownshipPro: Not built in TownshipPro yet as an automated Gantt simulator — for now, build this stage list manually (a spreadsheet works fine) and attach your best-case/worst-case date range in the Report Generator's Lender/Investor Pro-Forma Report notes field, since timeline directly affects return-on-time underwriting.

Lesson 9

Zoning + Coding — A Deeper Dive

Not done

Read a jurisdiction's actual zoning code section and calculate a parcel's lot yield under both the fixed-lot-size and units-per-net-acre density models.

Exact steps

  1. Open the Zoning Code Parser and load one of the four preloaded example districts to see a real parsed zoning code structure (density basis, min lot size, density range, setbacks, permitted uses).
  2. Find the zoning abbreviation's meaning — for a fixed-lot-size code (like R-5, R-7, R-40), the number is the minimum lot size in thousands of square feet (R-5 = 5,000 sq ft minimum).
  3. If the code instead shows a units-per-net-acre range (e.g., 8–14 units/net acre), note both the minimum and maximum numbers — this is a range model, not a fixed lot size.
  4. Calculate net acreage: gross acreage minus unbuildable acreage (from your 3e research).
  5. Convert net acreage to square feet (net acres × 43,560), then multiply by the 0.7 efficiency factor for streets/infrastructure loss — this gives net buildable square footage.
  6. For a density-range zone, multiply net acreage by the minimum units/acre for your low-end lot count, and by the maximum units/acre for your high-end lot count, then average the two for your default valuation basis.
  7. If the parcel has split zoning, measure each zoned area separately using a map area-measurement tool and run this calculation once per zone, then add the lot counts together.

Worked example

A 10-gross-acre parcel has 2 acres of wetlands, leaving 8 net acres. It's zoned for a density range of 8–14 units/net acre. At 8 units/acre, 8 net acres yields 44.8, rounded down to 44 lots; at 14 units/acre it yields 78.4, rounded down to 78 lots; averaging min and max gives 61.6 lots, which is the safest default valuation basis when a range exists. Average lot sizes come out to roughly 5,544 sq ft at the 44-lot scenario, 3,999 sq ft at 61 lots, and 3,127 sq ft at 78 lots.

In TownshipPro: This lesson is the Lot-Yield / Density Calculator's entire reason for existing — open it, select "units per acre" as the zoning basis, and click "Load worked example" to run this exact 10-acre/8-net-acre scenario with real numbers.

Lesson 10

The PUD

Not done

Determine whether a parcel with significant unbuildable ground could use a Planned Unit Development (PUD) to recover lots lost to environmental constraints, and check whether the jurisdiction's PUD rules actually allow it.

Exact steps

  1. Calculate the parcel's standard subdivision lot count first (gross acreage × base zoning density, no PUD).
  2. Calculate how many lots are lost once unbuildable ground (wetlands, steep slopes) is subtracted under a standard subdivision.
  3. Search "[jurisdiction] Planned Unit Development" or "[jurisdiction] PUD code" to find the jurisdiction's specific PUD ordinance section.
  4. Find the minimum open-space percentage required to qualify for PUD (commonly around 20%) and check whether your parcel's unbuildable percentage meets or exceeds it.
  5. Find the jurisdiction's absolute minimum lot size floor for PUD-shrunk lots (e.g., 5,000 sq ft) and check whether the base zoning is already at or below that floor — if so, PUD provides no benefit.
  6. If both conditions pass, recalculate the lot count assuming the unbuildable ground becomes dedicated open space and remaining lots shrink toward the minimum floor size, aiming to hit the original full-zoning lot count.
  7. Call the planning department and ask: "Does a PUD application in this jurisdiction require City Council approval, or can it be approved at staff level?" — PUDs commonly require Council, a higher-friction path than standard subdivisions.

Worked example

A 5-acre parcel zoned R-10 (10,000 sq ft lots) would normally yield 16 lots at full zoning. With 25% of the site being unbuildable wetlands, a standard subdivision only fits 12 lots at full 10,000 sq ft size — 4 lots lost. By dedicating the wetlands as official open space (well above a 20% minimum requirement) and shrinking some lots down to 7,000 sq ft (above a hypothetical 5,000 sq ft floor, so there's room to shrink), the developer recovers all 4 lots and gets back to the original 16-lot count via PUD.

In TownshipPro: Not built in TownshipPro yet — there's no native PUD eligibility checker. For now, run the standard-vs-PUD lot count comparison manually using the Lot-Yield Calculator twice (once with full lot size, once with your shrunk PUD lot size), and log the jurisdiction's open-space and lot-size-floor rules in the Checklist's notes field.

Finish all 10 lessons above to unlock this module's practice step.
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