Parents' house near new Amazon HQ, please review my plan

[Sergio Santos]

Hi there, thanks for reading!

So here's the deal:

DETAILS

• Mom & Dad own house, they're now retired and living mostly overseas. 
• House in Arlington, VA...not far from Crystal City (amAzOn)
• 2nd smallest house on the block, 3br, 2ba Worth ~$700k (most houses on block ~$900k)
• 1st smallest house on block next door...worth ~$680k
• So, to own both properties:

• Spend: ~$680k+ 
• Total Value: ~$1.38m

PLAN

1. Attempt to buy neighbors house.
2. Demolish both houses and build a 4 unit townhome (see pic for example).
3. 3 others to rent, 1 for family

QUESTIONS

Build Costs - Anyone have insights into building costs for a 4 unit townhome building in Arlington? And any other significant costs to be aware of?  Understand there's a ton to consider here, just  looking for ballpark estimate for now.

Financing - We have about $50k of cash and great credit between my parents and I. With the cost of neighbor house (~$680k) plus build costs for the 4 unit townhome ($??), plus other expenses.  Just wondering out loud if we can expect to get a bank loan for all costs, or should expect to raise some private. 

Beyond that, any other thoughts, suggestions really appreciated!

Thanks again for reading!

[Eric Teran]

@Sergio Santos I am an architect in the area and you will not be able to build this in the current zone. You have about a .01% chance of getting these properties rezoned. I just went through this with another client in Alexandria near Crystal City. Arlington is just as hard.

For a property to have a chance at being rezoned you have to either show hardship or that the community would benefit from this. You can’t show either one and your neighbors will come out in full force against you.

With that said if you can get both lots then go for it and hold on to them in case the city changes the zoning areas. Perhaps you don’t build a 4-plex but they might allow in-law suites and that would give you essentially 4 units on two lots. It would also be a lot cheaper than trying to build what you showed. To build around here is around $200 SF unless you have a relationship with a GC. Then you might be able to do $150 SF but that depends on finishes.