Low CoC, but huge lot

[Seth Schnakenberg]

I may have to opportunity to purchase a 13,500 sq ft property in which a SFH sits on the north half and the south half is undeveloped. The home would have a CoC return of ~4.8% and is being looked at by many buyers. Not a very good CoC, but then there is this:

During this pandemic, I am having difficulties hearing back from the city as to whether or not the lot can be broken up into two separate parcels. Looking at adjacent houses, this property should have been broken up in the past but never was. The idea is to split the lot and build either a "shotgun" style duplex or a SFH once the funds to do so are available (a.k.a. many years in the future).

The dilemma is do I pull the trigger on this SFH (which will be my first investment property) that has a very low CoC return in hopes of being able to develop the other part of the land in the future. Or, do I keep scootin' down the road and hope something else pops up in this very tight, pandemic squeezed market?

I have nearly made up my mind on what to do. I just want people to give me the confidence to do something for this first investment property.