Interior Decorator · brooklyn, NY · Member since 2008 · 121 posts · 0 votes
I found a lot 100x100 with a small ranch on top at 179k, it is in a urban area where 3 bed 1.5 bath and garage town homes go for 220-280k. Does it make sence to put up 3-4 units would they fit?
Developer · Atlanta, GA · Member since 2008 · 148 posts · 34 votes
19y
OK, i will mention my first and huge red flag:
When you say 100x100, im going to assume you are talking about feet? If so thats incredibly small, im not convinced you could fit townhomes on there if your life depended on it. besides that, 179K.. thats 770K per acre. In my book, thats stupid expensive and not worth looking into. Obviously, area effects price, but 770K per residential ac is expensive no matter how you look at it.
but 770K per residential ac is expensive no matter how you look at it.
I think land is a bit more expensive in Brooklyn than it is in Georgia. I would suspect they have some pretty big apartment buildings on lots smaller than that. What's on the adjacent lots?
Residential Real Estate Broker · AL · Member since 2008 · 109 posts · 0 votes
19y
I'd start by talking with your city planning department. There will be some things that you'll need to know such as: zoning restrictions and utility availability (water, sewer, electric). You should ask the city planner what uses would be acceptable for that lot.
Are you planning on tearing down the existing house? Have you factored that cost in?
Real Estate Investor · Dallas, TX · Member since 2008 · 10 posts · 2 votes
19y
The answer to your question lies in the amount of buildable area you can get on the lot. Assuming you have a solid market for townhome product you can get a very solid guage of the potential profits in this deal. A standard width for a well laid out floor plan of a typical town home is 24' to 30' which means you should be able to get 3 units on the site, you have to allow for an access drive to the rear parking/garage area. Assume your cost to build at $100/sf at an average unit size of 1800sf you will have a basis of $133/sf. If you can't see your way clear to a gross sales price of at least $176/sf it's not worth the risk. Based on your other sales prices in the market it does not sound like your deal will work. You would either need to build a cheaper product or find a piece of land in an area that commands stronger sales prices.
Also, urban re-development property is rarely evaluated in $/acre.
Real Estate Investor · London · Member since 2008 · 3k+ posts · 74 votes
19y
Originally posted by "GreenHorizons":
I found a lot 100x100 with a small ranch on top at 179k, it is in a urban area where 3 bed 1.5 bath and garage town homes go for 220-280k. Does it make sense to put up 3-4 units would they fit?
There is no way we can tell.
Start with the zoning. Would it be legal for such a development to be on the site? Then check with the planners so you can understand set back requirements and other things. If there is a zero lot line rule then you have options but...
You will eventually need to get to plans with an architect to see how you could layout the units. Off-street parking and other things can also impact what is possible.
Development takes time and money to find out what is possible. Some times you spend money and never even get close to making an offer for the land. Some plans will never work on specific sites.