House has 4 buildable lots, does that add future value?

[Brad F.]

Hi, I have a quick question on a flip we are about to embark on. We typically stick with the same type of house with average lots size etc. This home however came to me off market from a buddy of mine. The home sits on 15,000 square feet, and the city recognizes 4 buildable lots. No engineer has been out to the property, and their haven't been any "lot" improvements. The home sits in a very popular part of town, and dirt is hard to come by. That being said, I have considered to continue the flip as usual because we can still make money with a "large infill Lot. The thought being to market as future value in selling the lots to a developer. THAT ALL SAID, my question is, with the potential value in the lots does that increase my ARV on the flip? We are very close, and I could use the additional value.... OR do I spend the next 7 days aggressively marketing the land to developers?

[Matthew Paul]

There may be more money in the lots than the flip .   Do your research .  It may even pay you to sell everything to a builder  depending on the condition and the location of the house on the property it may be a tear down .