Can I Build for 75% of ARV
Is it possible to build for 75% of ARV all in? I am including the building, the land, land improvement, and any cost of the funding in this 75%.
Anybody have thoughts?
One idea I have had is the purchase of a BRRRR home with a large lot with unrestricted zoning (means you can do whatever you want on the land within some reason) and putting down 4 to 10 duplexes. In this way the land would be effectively free for the duplex units as it was aquired as a part of the BRRRR.
My challenge here is that land value has a lot to do with appraisal right? How would this work? Would I be better off subdividing the land or just keep appraising the same property with more improvements as I build up the duplexes?
Also, unrestricted areas may not have the best of neighbor's. Does this matter to a significant degree?
Is this even possible?