Zone Upgrade to turn an old house into 14 condos!

[Mark Doty]

Investment Info:

Single-family residence other investment in National City.

Purchase price: $330,000
Cash invested: $170,000

Project #2 in our "Shovel-Ready" ADU Concept. We purchased a run-down SFR with the goal of re-zoning to large multifamily, then getting approval from the City to build 14 condos on the site. After the approval and likely 8 months we will be selling to another builder who will take the project to the finish line.

I created a YouTube video on the concept and SB9 in California: https://youtu.be/SLBvRvQtXzs

What made you interested in investing in this type of deal?

San Diego has new initiatives that waive fees to incentivize the development of ADUs and add housing units in the County. We have a housing shortage and these incentives allow us to help the community and turn a profit at the same time!

How did you find this deal and how did you negotiate it?

We purchased from a Wholesale while it was in probate after the owner's death.

How did you finance this deal?

Hard money

How did you add value to the deal?

We're right in the middle of the project but are changing the zone and entitling a future build. We will like do a light rehab on the house so we have an additional exist strategy if the City doesn't approve our plan.

What was the outcome?

We should know in the Summer of 2022!

[Mark Doty]

@Joseph Coleman I formed relationships with two of the Hard Money guys that I'd seen at the REIA meetings and asked around about them. Each had good reputations and similar rates. I've used both of them because they have reputations that they will perform.