Suggestions on selling a residential vacant lot San Francisco

[Jimmy Jones]

Hello All,

I have an R2 vacant lot in SF. I had considered building on the lot but I only have limited experience in this area and feel selling it and investing that money would be a less risky option. Thoughts:. 1031, how to derive the asking price, should I do the transaction on an LLC, other options?

Thanks 

[Amit M.]

decent location, st. Mary's area of bernal. Your problem is probably what to do with the proceeds, I imagine it's owned outright. Hard to do a 1031 in this market locally. Hard to do a development deal as contractors are charging maximum $$ these days as they have so much business. Plus then you take the risk if you can't sell them from what you want. Probably no less than $300 PSF to build, so if you can do 2 1500 sq ft condos, that's a good $900k construction costs. Should sell for $1000 PSF though (make them architecturally nice, very open,  and very modern; everyone in this market spending big bucks does.) 

I'm guessing the lot is worth $500-600k, maybe more. Always easy to throw it on the market to gauge that. Doesn't even have to sell, just get an idea. Or talk to some good brokers that do development deals. Vanguard  or Brown & Co. does them, to get an idea of lot value. 

Really depends on your goals. Lotsa options...