Investor · Morrisville, NC · Member since 2012 · 1k+ posts · 673 votes
I'm collecting ideas about a hypothetical situation here. Let's say you found yourself owning 10 acres of land near 3 small size lakes. 40% of the land is buildable. You can clearly view all 3 lakes from the land. You could build any types of residential property on it: SFs, MFs, Condos, Townhomes, ... etc. You are about 5 miles from downtown, Major road accesses are nearby. Water, Utility & Sewer are nearby. Some mature neighborhood (30+ years) on less than a mile radius and newer houses on another side surround the property as well. Timeframe is 5 years and cost is not relevant at this point.
Near a lake or on a lake? On a lake is great, near a lake adds little to the value. Developing the land with condos or town homes will get you the largest cash return, because it is highest density. The first thing I would do is go down to zoning and planning to find out what the land is zoned for. Keep in mind you can appeal to change zoning. The best way to develop the land also depends on demand in the area.
Near a lake or on a lake? On a lake is great, near a lake adds little to the value. Developing the land with condos or town homes will get you the largest cash return, because it is highest density. The first thing I would do is go down to zoning and planning to find out what the land is zoned for. Keep in mind you can appeal to change zoning. The best way to develop the land also depends on demand in the area.
If you have houses on each side you might be in a houses only area. I’ve seen country property that requires 1-3 acres per house. As joe said I’d get down to zoning and see what you’re allowed to do today. If anything beyond houses is allowed I’d apply and get the permits approved before anyone hears about it or the zoning changes. There is a zero percent chance zoning will get looser in 5 years, especially with existing neighbors.
@Joe Splitrock . It is actually on the lake. I know the Zoning. But, obviously it can be changed. Will take time and most likely $$$ as well. It is a very fast growing town with lots of new STEM jobs added.
@Joe Splitrock . It is actually on the lake. I know the Zoning. But, obviously it can be changed. Will take time and most likely $$$ as well. It is a very fast growing town with lots of new STEM jobs added.
That is great. Lake property is very valuable. You want to maximize lake access and development density.
I'm collecting ideas about a hypothetical situation here. Let's say you found yourself owning 10 acres of land near 3 small size lakes. 40% of the land is buildable. You can clearly view all 3 lakes from the land. You could build any types of residential property on it: SFs, MFs, Condos, Townhomes, ... etc. You are about 5 miles from downtown, Major road accesses are nearby. Water, Utility & Sewer are nearby. Some mature neighborhood (30+ years) on less than a mile radius and newer houses on another side surround the property as well. Timeframe is 5 years and cost is not relevant at this point.
You need to determine the highest and best use of the property based on overall value of the project when complete. You do this by determining what is in demand right now. Where is the gap in the market. ie. Apartments, condos, town houses, single-family homes and what level of product. Then you need to run the numbers and determine the most profitable project based on the highest demand for the property.
I'd build a house by the best lake and a couple of cabins by the other lakes and move there myself! If there are no restrictions and I could do whatever, I'd see if I could divide it up into smaller parcels and make a mix of half acre and 1 acre lots to sell off and keep some smaller ones where I built a few cabins for short term rentals. You could also do a RV and camping area.