All Forum Posts by: Justin Green

Update,

Apparently the builder thought this was a great idea and had a bit of a head start on me. He went into contract last week.

On to the next one.....

Kenneth and Karen Thank you for the insight. I have continued to do my due diligence. As for lot layout I have found our proposed floor plan will fit on the lot with out adjusting property lines (5' side 15' front and back setbacks) I am also in contact with a civil engineer to asses costs of utilities and going to visit the building dept. I am leaning towards the fix and flip on the old home vs full on new builds. Keeping it simple for my early deals. On acquisition I will only encumber the home with the lot its on. The vacant lot will be structured to be owned free and clear in order to obtain the new construction loan.

I appreciate all the feedback and insight crossing my fingers this deal comes the fruition.

BP community,

Seeking advise from others who have done a parcel/new build on included lot before. I am a RE broker and just received some great info on an early market listing. I will keep details general to protect privacy and numbers rough estimates. Basics are a home coming on the market in 1-2 months. Home is a basic SFR on a 10K sq/ft lot with additional 6K lot already parceled as a separate tax lot total 16,000 sq/ft land in R6 highly desirable area. I am already seeking a new build for our next personal residence in the $450K range (total build with lot/land). 2 potential ideas with the property. Buy it move into old home and build new home on 6K lot out front. Then fix/flip, and list old home on the bigger lot. Rough numbers in multi part deals end result $50-100K still owed on loan that maxed at around $600K for purchase, build, and renovate old property.

Also to note this is a highly desirable location with builder pressure on larger lot owners on the same street. Builder already has verbal offer into owner.

Option 2.

recombine both lots and tear down old home build 3 homes (5-6K lots), 1 personal I finance, 2 builder covers, I get listings back and sell lots to builder. rough estimates $250K to build 1 home, on me. 2 lots and list backs about $200-250K back.

This deal still takes $450K to acquire first I will have about $100K cash to bring in. So $350K loan needed to acquire the deal plus 1 new build at $250K.

Fix/Flip option 1 should recoupe $450-550K on sale of old home.

Option 2 total new build does not look as good so far.

How many of you have done this? Buying a larger lot SFR to parcel and or build a new construction on included lot. What advise and directions/suggestions do you have.

This is very fresh information and I am still working on more accurate numbers in this market area stuff is moving in days not weeks.