Home Built on a 35000 Sq Ft Lot/ Should I buy and split the lot

[Etheridge Mixon]

Hello fellow BP collogues,

Looking for some advise on a potential deal in Katy, Texas. Below is the scenario.

• Home was built in old Katy in 1970. Its a 2 story, 2900 sq/ft  slab on grade home sitting on a 35000 sq/ft lot. Pre Havery ARV $245K
• The home had flood damage in the utility room and office downstairs prior to Harvey, less than 3 inches back in April 2016.
• Entire downstairs of Home was flooded with only 6 inches of water during Harvey 2017
• Needs about 50-80K of Rehab including a new Roof required. Still waiting for contract bids.
• No Water remediation has been completed to date.

I was told to off just lot value on the house which is 62K. I am thinking of buying this property with the intention of splitting and selling half the lot and then rehabbing the property and renting it out on the other lot.

Is this a good deal if I can acquire the property for 62 to 75k?

Also would like to know if anyone has experience with splitting lots in a residential neighborhood. Not sure how re-zoning a lot works.

Any advise or suggesntions?

Looking forward to everyones feedback!

Thanks,

E