Figuring out the ARV and MAO... HELP!!

[Casey DeCaire]

Okay, I'm pretty new to wholesaling... I've been able to help and basically watch a friend negotiate a few wholesale deals. But my friend doesn't know the answers to my questions on this house that I'm pursuing by myself, so I'm turning to you all!! And also trying to find a nice real estate agent who will let me ask them questions!

Basic Info:

~SFH built in 1916 in the Greenlake neighborhood of North Seattle

~2830sq ft, 5 bed, 2 bath

~5711sq ft lot

~Land Value: $364,000

~Improvments Value: $1,000 (its in bad shape)

~Total Appraised Value: $365,000

~Bought in 1988 for $82,500

So I think that this is a pretty great find so far... comps in the area are going for $500,000. But this property is zoned LR3

This is where I'm confused. I know that this property has more potential than just a single family home, I just don't know how to put this into numbers to take to a buyer. I believe that 1 unit/800sq ft would be allowed, so if I'm assuming correctly... You could have between 3 and 7 units on this property.

The house in its current state is very bad, the city has assessed it at $1,000 for the improvements to the land... and they've done that for the past 4 years. It's completely boarded up and has No Trespassing signs all over it, not to mention the graffiti. But the owner is still paying taxes on it...

I think the best option would be to tear down and rebuild. I just need help figuring out how much everything would be worth, once its maxed out to the zoning limits... meaning ARV... and then I can figure out what I can actually offer this lady.

Thanks for your help in advance everyone!!