Seeking Advice on Demolition Costs and Investment Potential of Distressed Property

[Jimmy Perron]

Hi BiggerPockects Community,

I wanted to get your thoughts on a unique investment opportunity I stumbled upon recently. Yesterday, I found myself at our local brewery – arguably the best spot in town for both a pint and some insider info. While there, I ran into a friend who's a seasoned realtor and, as luck would have it, he had some intriguing insights about a property I've been eyeing: 2265 Miller Street, Terrace, British Columbia.

Here's the scoop: The property, priced at a tempting $215,000, is part of an estate liquidation – the previous owner passed away, and the heirs are looking to sell. It's got a substantial shop space that screams potential, but there's a catch – the residential structure on the land is in a state where it's better off removed. Over a round of beers, a local carpenter chimed in, suggesting that demolition costs could soar as high as $100K.

I'm seriously considering this investment but weighing the pros and cons, especially those hefty demolition costs. So, I turn to you, the wise and experienced BiggerPockets community, for your invaluable insights.

Property Details:

• Type: Commercial/Residential Mix
• Price: $215,000
• Unique Features: Large shop area with potential for various business or creative uses.
• Considerations: The residential structure on the property likely needs to be removed.
• Zoning: RU3 (High Density Rural), allowing for a variety of uses including hobby farms and home occupations, with certain building and site coverage restrictions.

Key Challenge:

• A local estimated the cost of removing the house, including asbestos testing and abatement, could be as high as $100K.

Context:

• The property is part of an estate liquidation following the owner's demise.
• The primary value lies in the commercial aspect (the shop), with the residential part holding little to no value in its current state.

Given this scenario, I have a few specific questions for the community:

1. 1. What are the potential challenges and benefits of investing in a property with a focus on the commercial aspect (the shop) while the              residential part holds little value?
2. 2. What strategies or approaches would you recommend for managing and financing the demolition and asbestos abatement process?
3. 3. How might the history of the property (owner's demise, succession's liquidation) impact the investment?

I would greatly appreciate any insights, I'm especially interested in hearing from those who have undertaken similar mixed-use property investments.

Thank you for your time and expertise!

Jimmy