Prime Duplex Development Opportunity Near Uptown Charlotte

[Mitchell Coles]

Investment Info:

Small multi-family (2-4 units) other investment.

A newly acquired 6K sq. ft. lot in a thriving area of Charlotte near Freedom Drive and Uptown. Originally under contract with a wholesaler, I resolved complex development issues, including acquiring and recombining an adjacent parcel, to meet zoning requirements under the city's new UDO laws. Plans are in place to build a stackable duplex with two 960 sq ft units (2 bedrooms, 1 bath ea). Located in a high-demand area with strong rental and purchase potential, this project is poised for success.

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

I was interested in this deal because it is located in a rapidly transitioning neighborhood in Charlotte, near Freedom Drive and Uptown. The area offers a strong sense of community, increasing demand for housing, and significant growth potential. This investment aligns with my strategy to develop high-quality rental properties in thriving neighborhoods, where both rental income and property values are steadily rising.

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

I found this deal during a foreclosure process while handling the closing as an escrow officer. When the original wholesaler was unable to find an end buyer and the contract was canceled, I seized the opportunity to purchase the property directly. By leveraging my knowledge of the situation and the property's potential, I negotiated favorable terms and secured the deal, ensuring it aligned with my vision for developing a duplex in this thriving Charlotte neighborhood.

How did you finance this deal?

I financed this deal using a combination of cash and a line of credit. This approach allowed me to secure the property quickly and provided the flexibility needed to cover the costs of resolving development issues and initiating plans for the duplex construction. It was an effective strategy to keep the project moving forward while maintaining financial liquidity for other investments.

How did you add value to the deal?

I added value to the deal by resolving complex development issues, including acquiring and recombining an adjacent parcel to meet the 6K sq. ft. zoning requirement for a duplex. Additionally, I collaborated with architects, engineers, and contractors to finalize the design and construction plans for a stackable duplex. This work transformed the property into a prime development-ready lot in a rapidly growing area of Charlotte, significantly increasing its potential for RI and MV.

What was the outcome?

The outcome is still in progress. The property is now fully prepped for development, with the 6,000 sq. ft. lot meeting zoning requirements after resolving parcel recombination issues. All design, architectural, and engineering plans for the duplex are complete, and construction is set to begin soon. Once finished, the stackable duplex will provide two modern rental units in a high-demand Charlotte neighborhood, poised to deliver strong cash flow and long-term appreciation.

Lessons learned? Challenges?

Addressing zoning and land development issues early is crucial to avoid delays. Collaborating with experienced professionals like surveyors, architects, and engineers ensures smoother project execution. Flexibility and persistence are key when navigating unexpected obstacles in real estate development. The biggest challenge was resolving the parcel recombination, which involved acquiring additional land and coordinating with the city for approval. The lengthy process required careful planning.