Tear Down Old Home Build New Profitable Multi Family
I am contemplating tearing down an old home I have rights to and building a more profitable multi family on the lot.
The existing home is so beat up and needs so much work that the profit after the reno will not be worth the effort. Another factor is the market value of a single family home in the area. 2 families go for 360+ and 3 fams go for 450+, where single families barely break 200+.
I am hoping some of you guys know of ways to get financing for building a new home. I have builders quoting me 65 per sq ft which would be about 150k for what I am trying to do. Where can I get funding for this??? Anyone with some creative ideas?
Also if anyone can tell me some things to watch out for. By the way the property is in Newark, NJ if anyone has some local builders they can recommend please let me know. Thanks!!!
Check the zoning laws. Can you build a MF on that lot?
Thanks for your reply.
I am in the process of checking that. In newark on lots smaller than 25x100 you need a variance to build mf on the lot. My first step is locking down architect who can build me designs. Then if he can build a MF on the lot I will go for a variance.
Long story short yes you can build MF on the lot assuming you get the variance from the city which is done pretty regularly.
I did it and is was very succseeful. The poster above is correct, you need to get everything in writing and assign a monetary value for the work performed.