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Updated over 3 years ago on . Most recent reply
![William G.'s profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2271479/1738198281-avatar-williamg428.jpg?twic=v1/output=image/cover=128x128&v=2)
ADDED VALUE OF ADJACENT MULTIFAMILIES
Hi BPers! I own a small 6 unit multifamily in Santa Monica CA. My neighbor recently informed me that they may have to sell the slightly larger (8 unit) multi next door. Im considering making an offer before it goes public.
This purchase could be a great addition to my portfolio for several reasons. There should be decent cash flow and appreciation and it being directly next to my other property makes it much easier to manage.
My question is: How, if possible, can I predict what kind of added value there is in having a double lot?
My thought is that at some point down the road it may be worth much more to a developer who wants to build larger. Ive seen this done on my block and in other areas.
Any thoughts on this would be great! Thanks!!
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Originally posted by @William G.:
Hi BPers! I own a small 6 unit multifamily in Santa Monica CA. My neighbor recently informed me that they may have to sell the slightly larger (8 unit) multi next door. Im considering making an offer before it goes public.
This purchase could be a great addition to my portfolio for several reasons. There should be decent cash flow and appreciation and it being directly next to my other property makes it much easier to manage.
My question is: How, if possible, can I predict what kind of added value there is in having a double lot?
My thought is that at some point down the road it may be worth much more to a developer who wants to build larger. Ive seen this done on my block and in other areas.
Any thoughts on this would be great! Thanks!!
William,
Search the MLS for recent sales of large lots or teardowns on large lots. This'll give you a sense of the premium on large lots of land.
Best,
Jon