Subdivided lot sold

[Lilly Shamam]

Investment Info:

Single-family residence buy & hold investment in Keansburg.

Purchase price: $80,000
Cash invested: $80,000

Single family home with large lot purchased to upgrade the property and get it ready for tenant occupancy. While occupied we attempted to subdivide it directly with the township. After several attempts to go for variance direct, we chose to hire an attorney and local engineer to assist with the process. After several months of preparation and COVID 19 in the middle we were finally able to present our case in front of the board with a positive outcome. The investment is now 2 separate lots with a single family home currently on one lot and a vacant lot with utilities on the other which is ready for build out. Both properties have now been sold on the open market.

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

Large lot in up and coming neighborhood

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

Through the MLS. Property was on the market for a while as agent noted that buyers "feared" the work needed to complete.

How did you finance this deal?

Silent partner

How did you add value to the deal?

Upgrading property, renting and subdividing

What was the outcome?

Property was recently on the market for 11 days and received several offers for each parcel.

Lessons learned? Challenges?

Never go into partnership with a friend