Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 8 years ago on .

User Stats

286
Posts
67
Votes
Leon Lee
  • Real Estate Investor
  • Atlanta, GA
67
Votes |
286
Posts

Estimating the value of a property with large lot

Leon Lee
  • Real Estate Investor
  • Atlanta, GA
Posted

Hi, 

I have a question about the value of a property with large lot and would like to hear some inputs from the experts here:

I am looking at a distressed property with large land (0.65 acres). The house is 3/1, 1300sqft. It can be converted to 3/2 and the total repair estimates is around $35K. Now, there are several recent sales within 1mile radius and similar neighborhoods in the past 6 months:

1) 3/2, 1100sqft, 0.25A, $220k, pending. The house is rent-ready. 

2) 3/2, 1600sqft, 0.3A, $237k, sold. The house is rent-ready. 

3) 3/1, 950sqft, 0.3A, $170k, sold, the house is rent-ready. 

Based on this information, can anyone give an estimate on the ARV of the property that I am interested in? I am thinking about $200K conservatively. Also, how should I estimate/scale the value of the land based on this information? Is that correct that my purchase price should be around $110K~$120k,based on the 70% rule?

Since the lot is large and leveled, what will be the best uses of the land in your opinion? I am thinking about two options (1) change the zoning, as one of the neighboring lots was recently done, and build 3~4 townhouses and (2) cut the current lot into three, with the current house in the middle and build two craftsman houses on two sides. I am interested in long-term buy and hold. 

Thanks

Lee