Fort Lauderdale 14k downtown parcel + 3 unit

[Drew Slew]

Interesting in hearing feedback and pricing comparables to an off market potential deal where I have met the owner who is willing to sell his 3 units building (SFH with 2/2 and behind it an ADU with 2 other 1bed units and 2 car garage). Location seems quite good close to Espianade park.

Current rents and building quality needs work, total rent income is around 5k/month, parcel is quite big 14k sqft. Indicative price around $1.1M, which would be a loss, with tax around 2% potentially 20k/year. Value adds that could bring up cashflow/value:

- renovating units to bring rent up to 6-7k/month 

- ability to rent out parking space on the property as lot is large - trailers, parking, RVs etc - about 1-2k/month cashflow. 

- property had TDR trasnferable development rights and can be built 5 stories on it. I wouldnt develop anything but sitting on it could be worth waiting to one day add new units/condos or a larger multifamily partnering with a developer. 

- half of parcel can also be sold off as only one half has the SFH and ADU on it

Owner is quite firm on the price. Even though it doesnt cashflow well asap, the potential would be its proximity to Las Olas, downtown and the size of the lot, different development options. 

Looking to hear any ideas, how one would tackle this opportunity or what would you do other than raising rents slowly and sitting on it to refi or wait on appreciation. Thanks for any input