Ideas for SFH w/ large lot and potential to be commercial.

[Josh Holman]

BP Investors,

Let me lay out some characteristics of a potential deal and what you seasoned REI's would suggest as making it profitable. I came across a 3BD, 2BTH, SFH for 200K and a new concrete floor outbuilding 26'x24' w/ 2 garage doors, that has been on the market for over 100 days. This is because of structural damage in the basement, pictures show it in 2 places, and could be a costly repair. The lot size is 1.72 acres and has the potential to be zoned as Commercial. Location is on a major road in town with other business's less then a block away.

Does anyone have experience in a similar situation, where maybe a lot split is a profitable option? Half could get zoned commercial and either build a (duplex,triplex,tri, etc.), business suites, or just sell once zoned commercial since it is on the major road. Then proceed to fix the existing house structural damage, and renovate interior since it is severely outdated, much can be done to increase value. Comps in the area are around 300K for similar properties, with size of house, 2 car garage with separate workshop/2 car garage in backyard, on .85 acres, if lot was split. The other .85 acres could be sold for 20k as residential, I don't have comps for commercial land in the area to know if it raise the price. The area could use both commercial buildings, rentals, or SFH since as of last week this was the only property in the area on MLS.

cost 200K - Reno cost(-10k Bathx2,-15K kitchen,-10kFoundation Repair,-5k rest of home) -50K 

ARV 300k - Split lot +20-50K = aprx 340K minus repair cost-50K = 290K (90k Profit)

Besides lot split, fix and flip, what is another exit strategy for more profit?

Thanks for your time, I just want to have another perspective for my own growth of how to analyze a deal.

Josh Holman