Squeezing Out A 2nd Lot
A house is listed for $200,000 and I can buy it for $185,00 which is close to market value. It has cosmetic issues which can be worked out, but can still be a contingency on the purchase agreement if I get a loan. The site is 38,200 square feet (per survey) in a restricted subdivision. The improvements are located within 20 feet of one side of the site. There is plenty of room to add a second dwelling on the other side of the lot. Problem. The site must be 40,000 square feet to subdivide. There are five properties all improved which border the site, all with improvements and owner occupied. I’m considering making an offer on this property and if it is accepted, immediately offer one of the adjacent property owners $5-6,000 or more if I need to for a 1,800 square foot piece of their property, if turned down, I’ll go to the next door neighbor, etc. The portion of property that I’ll be trying to buy from the adjacent property owners is an ugly drainage easement, so if I’m able to convince one of them to sell, they won’t be losing any usable area of their yard. If I decide to subdivide and sell the 2nd lot, I can easily get $70,000. Any thoughts, advice, etc. are appreciated. I’m done a few similar to this, but not where I bought a strip of land from an improved residential property.
Please give me any advise on approaching experienced developers. I have shopped deals for individual homes, but I would appreciate any advise from anyone who has shopped a raw land deal. ASAP!!!
Upstart:
May have an interest if commercial developable. Ping me if still available with additional info.
- Austin