Does Multifamily/Commercial zone add value

[Shem Varhaftik]

I made an offer on a property today, but unfortunately, it was not accepted. I informed the seller that I would do my due diligence to see if I could get closer to their asking price. I wasn't unprepared—I had a clear idea of my MAO, ARV, and estimated repair costs. However, the condition of the property was much worse than anticipated, which prevented me from further negotiations.

I have a rough estimate of the necessary repairs, but the challenge is that an investor might see this as either a full gut renovation or a moderately heavy project. This is a single-family home in a commercial and multifamily zone, so I believe that if the right investor obtained this property, it could be acquired at a higher price due to its potential for significantly higher cash flow.

I'm wondering if I can increase my asking price because of the property's zoning potential. If so, how can I attract the right buyer?

[Shem Varhaftik]

Quote from @Nathan Gesner:

Quote from @Shem Varhaftik:

I made an offer on a property today, but unfortunately, it was not accepted. I informed the seller that I would do my due diligence to see if I could get closer to their asking price. I wasn't unprepared—I had a clear idea of my MAO, ARV, and estimated repair costs. However, the condition of the property was much worse than anticipated, which prevented me from further negotiations.

I have a rough estimate of the necessary repairs, but the challenge is that an investor might see this as either a full gut renovation or a moderately heavy project. This is a single-family home in a commercial and multifamily zone, so I believe that if the right investor obtained this property, it could be acquired at a higher price due to its potential for significantly higher cash flow.

I'm wondering if I can increase my asking price because of the property's zoning potential. If so, how can I attract the right buyer?

Are you wanting to flip this property?

You can't seem to justify the current asking price, so how are you going to convince another buyer that it's worth more based on zoning? I agree that's possible, but it appears to be priced at maximum value. I don't see where you can squeeze anything more out of it.

 Im wanting to get it UC and assign it to an investor who would flip it.