Acquisition options - buying TN family home in upcoming area

[Candace Ellison]

Looking to buy my grandmother’s home built in 1930 2-story 2200 sq ft

Sits on close to an acre lot in an area that is being heavily revitalized.

80k purchase price

After research with zoning, I plan to split the lot into 4 and apply for zoning that allows a multi-family up to 4 units per lot.

I am more interested in the potential for the lots verses the home as it’s in extreme disrepair and has structural issues. With the reno estimates I received for $200K I would rather demolish and build new. Who knows what other surprises I’ll find once opening up the walls.

Limited on funds and need ways I can purchase home and fund demo (18k)

Seller financing is not an option. Any thoughts and strategies on how to approach this are welcome. 

[Jennifer Dixon]

Hi Candace! I'm in chattanooga too (so we should meet up!) Have you considered a hard money loan to help you do the work? Granted, this will only work if you're planning on doing rehab--however I know of a HM lender that does/will help you subdivide and build, so that is also an option. 

If you do rehab - don't be totally afraid of foundational issues - folks love to tuck tail and run but often it's not that bad. Def have a good gc go with you to determine if it is "bad" or if it's just a few beams that need to be supported. 

Be aware to do mf- chatt can be sort a stickler with zoning. Depending on where your grandmother's place is, you may have no problem at all changing zoning or it may never happen. Plus, you're at the mercy of city commission meetings etc. OH! To get a survey--goodness gracious- you'll by 6-8 weeks out. It'll likely be 600-1200 per lot for survey and division (I did this with another client last year). Surveyors don't get in a hurry and they know there aren't many in our area so they price themselves accordingly.

Hit me up with a dm if you want to talk more.