Rezoning and Developing in NC

[Dave Moore]

Hello, I've followed BP for a few years now but this will be my first post. Could use some advice from someone with more experience than myself.

Situation: I own a property in North Carolina that currently has a main house and ADU on it. The property is 1.08 acres and a long rectangle shape surrounded by wooded areas. I originally was under the impression that I had a zoning that would allow for developing more units, up to 6 more units. I recently found out after talking to the local zoning/plans department that I'm zoned R3 and only allowed what I currently have.

My question: Is it worth the time or likely to be approved to attempt to rezone my lot and build at least 3 more units? The investor who owns the property across the street is also developing but his property is zoned correctly already; his property is similar is shape and size. I dont have many neighbors within the area and dont see them being an issue. This is a quickly expanding area as it sits right outside the downtown and could handle the expansion. There also has been a terrible shortage of rentals in the area this year (there were only 4 available when I last listed one of my properties; city is Southern Pines, NC). Also- i have since moved to SF; would I personally be the only one able to work this zoning problem, or could my project manager?

My thinking: If I can build 3 more units, get the rent that I expect i will and develop based on the budget ive researched- selling this property in a few years as a commercial property based on a 6% cap rate (which seems to be the standard for this condition and location from what I can tell) will be the most profitable way to capitalize on the house. I put $0 down on the house and expect I could profit ballpark 500k+ on sale 2-3 years after further development if I did the math right. I just dont know how likely it is that the property will actually be approved to be rezoned.

Could use some advice from someone with more experience than myself. Has anyone had success/failure in a similar venture? Thanks in advance!