Running numbers when selling to developers.

[Alex Brewer]

Hey BP community, I'm an 18 year old aspiring to get into real estate investing. Recently while looking through houses on the market in Hillsboro Oregon, I found a SF house sitting on a piece of land that is zoned for multi family residential houses. With the size of the land it is possible to build 4 townhouse style homes much like the neighborhood surrounding the property. My thinking is purchasing the property and selling to a developer but my problem lies in how to run the numbers. The house is currently on the market for $245,000 and I believe with as long as it's been listed and amidst the corona virus fears, that it can be agreed to a lower price. My question is how can I run the numbers to bring to a potential developer/buyer? I believe this could be a fantastic deal and developing like this in Hillsboro is far from uncommon, I'm just unsure how present it. Any suggestions or direction to past forums/blog posts would be greatly appreciated. Stay safe, thank you!

[Jared Hampl]

Hey @Alex Brewer, wanted to hop on here and share my thoughts as an Oregon resident as well. Smart to get into real estate at 18! I purchased my first home via "House Hack" at 21 years old. I got a conventional loan (3.5%-5% down) and rented out my empty rooms to some of my friends. This was a great way for me to invest in real estate as a newbie. A duplex or small multi-family property would be a good idea also (Live in one unit, rent the other). With the current pandemic going on, might be tough to get a loan right now, but still possible with the right lender. I recommend this route as there are far less costs and risks involved, and still a great investment!