Should I sell my home as a SFR or R4 (Development Property)?

[Greg A.]

Hello to all,

I just discovered this organization and recently became a member. Very excited to have found BiggerPockets and all the great resources here. As I'm just getting on board here, so I've got tons of homework to do. But maybe a few of you can help me along.

I recently bought a home in a booming NW Montana location. Seller financed with a balloon due in a few years. It was annexed into the city limits a few years before I bought it. 3.5 acres with a smaller 1949 home on it. Because it has a (1 acre) spring fed pond and is home to numerous wildlife species, it qualifies as a Sports Afield Trophy Property. Its a fairly hot market here and it would sell quickly bringing a 20% profit. But it is also zoned R4 and can be developed into a business location, school, lodging, or up to 10 new townhomes. Average comps for a townhouse here is around 300k. 

So I need advice on whether I should sell the home and land as a Sports Afield Trophy  Property and take my 20% and move on or wait it out and try to catch the interest of a developer and hopefully sell for bigger gains. 

The local planning department has ok'd the general concept of townhouse development already, but I don't have the funds or experience (yet) to go forward with this strategy. If a developer buys it, they will definitely level the home. If I decide to go the SFR sale route, I could sell 'as is' for the 20% profit or could improve the home some. Bathroom, basement area, carport, etc. and get maybe 30%.

Any advice from successful developers and/or land strategists? Your expertise in this area would be greatly appreciated.

Looking forward to hearing your replies!

Here's a photo of the property in relation to the surrounding area.