New Duplex in Ann Arbor should I build on or just rehab?

[Kit Klekamp]

Hello,

I was able to purchase a duplex in Ann Arbor that is completely value add.  It is almost a double lot down town and I was wondering, should I just fix it up or should I pay to get another building built next to it.  The duplex is a 2/1 and a bit small, 1440, so each unit is only 720.  Any suggestions would be greatly appreciated.

Thanks.

[Joshua B.]

You're going to need to check with the city to see if you can build. "Almost" a double lot isn't the same as a true double lot. If it is indeed a true double lot, and there's an existing duplex on it, there's a decent chance that it's zone multi-family. So, you may be able to tear down and build two duplexes. That's definitely what I'd do in your shoes, assuming you're legally able to do that.

@Sarah Lorenz has some good stories of builders downtown making an absolutely killing in these situations. What's the address?