Lot Flip Or Frat House?
I’m purchasing a lot which is 25’ x 200’. It presently is an unbuildable lot and I am getting it for a very low price. $8,000 There is a 25’ x 200’ lot to one side and a lot with house on the other. My options are
(1) Buy the vacant lot beside it and assemble, then I could sell the 50’ x 200’ site. 50’ x 200’ lots are selling for around $55-60K so I could flip it or build a spec or rental.
(2) Build a house which is 14’ wide. I know I can get this done, because it has been previously allowed for singlewide manufactured homes. I can build a 14’ x 80’ vinyl house on a slab which will not have a great deal of curb appeal, but will be a cash machine as a rental since it’s close to the university and will rent for at least $1200 a month. I can put the improvements on the back of the lot and there will be plenty of parking in the front yard. It would be a fraternity dream home and would be legal since the neighborhood already has a few. Picture Otter & Bluto? I can build the 14’ x 80’ for a $55 per SF.
The quickest cash would be to convince the owner to allow me to list my lot and his lot jointly with the listing stating “subject to possession”. It would not be a typical listing, but I’ve been creative before about selling property “subject to”. I intend to write the owner a letter and disclose my intentions and be completely open. I’ve been informed he’s suspicious of anyone now after a couple of buyers tried to hoodwink him and buy his lot for next to nothing. I intend to lay the cards on the table and share it 50/50 with me being the listing agent. I see the potential to sell this quickly and net 20-25K after attorney fees and selling agent commission. Anyone ever had one like this?
Woodsong your condescension is coming through loud and clear. I suggest you read up on listing property “subject to seller taking title” before making judgments.
ok. Thanks for the heads up.
For the record, i invite anyone here on the forums that thinks i am condescending to speak up and include it in this thread. I somehow think that list is going to be very, very short. Fact is, i spend a lot of free time to answer questions here for no other return than the joy of knowing i helped someone reach their dreams/goals. The questions i asked were legitimate and valid, the answer to one of them important for you to answer (to yourself at least) to help you build this project.
However, you seem pretty confident in your abilities so have it. [ Edited by woodsong on Date 05/15/2006 ]
I apologize if I came off surly. It looks like I was in error and inferred incorrectly.
It appears I will have a very good chance of getting a hardship variance due to the original site sizes being smaller than what is currently allowed, ie. the area was recently annexed. If this attempt is successful I may try to buy the similar sized adjacent site and build a 2nd structure with the same plan.