With that in hand, we close on the house, immediately re-list (avg DOM 30 in the neighborhood), sell that to pay off the loan and sell the shovel-ready lot in 2-3 months when the building permit comes in.

Really you'd need a plans, approve those plans for a permit and to get the work done of course.

Get permits and do things right.

I'd do it as an STR, that way when permits/regulations come in you can be grandfathered in.

There are many more of this type of property in Durham as older homes with basements are still price accessible.To make it a "legal" or permitted duplex, the process is definitely cost and permit intensive, and in most cases may require you to use a GC or similarly licensed tradesman for parts of the project.

For me to go through the due diligence myself and then if I did buy the property going through the zoning and permitting process probably takes more time than I would want to take and would rather deploy my capital elsewhere.

As of 2022, zoning no longer permits new Airbnb’s in most zones  - Fees upon fees upon fees: The STR hotel tax is no joke.

Did you get permits for everything and did the building inspector sign off on everything? 

Policies like rent control, zoning restrictions, high taxes, lengthy permitting processes, and more reduce housing supply.

Live-in rehab definitely sounds appealing with the cost savings, but you're right - my family situation prioritizes stable housing right now, so it wouldn't be the best fit.Tahoe STR: Thanks for the reminder about permits!