- Joined
- Mar 4, 2008
- Messages
- 114
Hi folks,
Sorry if this is a long drawn out post. I don`t know how much detail to go into, so I`m going overboard a bit.
So I have aquired a town lot. i bought it before joining REIN, on a hunch, so I didn`t do the due diligence(shame, Keith, shame). I am currently racking my brain as to what exactly to do with it. Certainly there are tons of options, but I just simply don`t have the experience to know the best direction.
I am getting the distinct impression that this network is all about buying existing properties, but I`m hoping some of you have done something similar and can tell me what might have worked for you.
The details: 100 X 120 foot double R3 lot at the end of a street in Innisfail, Alberta, one block off main street. Currently a tiny house which rents for $775. PP was $245K. I borrowed 100 from my Heloc and the rest is mortgage. The lot will easily fit a 4 unit-3 bedroom town house, and would also fit 5, but they`d be much smaller. I`m a low income wage earner, but I don`t do consumer debt, so it kind of balances out when I need to get money.
The south end of the lot, which is the end of the city block, slopes upward sharply, and is about 9 feet higher than the rest of the lot. This may not seem significant, but it would mean I could theoretically line the units up on that south end. The main level would now be at street level, but the back of the units would be 9 feet lower, so I could potentially put the garages in the basements.
Some of the variations between my options may seem minute and silly, but I want to make sure I do this right.
My options.
1-Sell the bugger and take my money and go buy as many existing properties as I can. I don`t really make any money on this, but it releases my cash, and now thanks to this place, I have some knowledge on how to buy properties.
2-divide the lot(I don`t know if I can do this yet), build a duplex, sell both sides seperately, take the money and build a second duplex on the second lot, and keep it forever. I`d try to get basement suites in both, if the parking would allow.
3-Do a 4 unit, two story town house building, each 3 bedrooms, about 1300 SF or so. Garages in basements. Condominiumize them, and sell two of the units. I`d try to turn the basements in the units I kept into suites.
4-Do a 5 unit place. Now the units go down to a gross width of 18 feet. I could make them three bedroom units, but the secondary bedrooms are only 8 1/2 feet wide if I do that, so I`m wondering if they should just be two bedroom units instead? In this scenario, I condominiumize it, and sell two or three of the units. Basically I`d sell enough to get the price on the kept units low enough to cash flow. Again, I would suite my units if possible.
5-Design a building, get the permit, knock down the house, and sell it in a state that an investor can sign the papers and start building right away. I`d then take the cash and buy existing properties. I would expect to make some money on this, but I really have no idea how much. Has anyone done this? Any idea what % one could likely to increase the property value, if all other things remain constant?
Well, that`s all I have for now. A big thank you in advance for those of you who have taken the time to read this far. I really appreciate it, even if you don`t answer.
Thanks
Keith
Sorry if this is a long drawn out post. I don`t know how much detail to go into, so I`m going overboard a bit.
So I have aquired a town lot. i bought it before joining REIN, on a hunch, so I didn`t do the due diligence(shame, Keith, shame). I am currently racking my brain as to what exactly to do with it. Certainly there are tons of options, but I just simply don`t have the experience to know the best direction.
I am getting the distinct impression that this network is all about buying existing properties, but I`m hoping some of you have done something similar and can tell me what might have worked for you.
The details: 100 X 120 foot double R3 lot at the end of a street in Innisfail, Alberta, one block off main street. Currently a tiny house which rents for $775. PP was $245K. I borrowed 100 from my Heloc and the rest is mortgage. The lot will easily fit a 4 unit-3 bedroom town house, and would also fit 5, but they`d be much smaller. I`m a low income wage earner, but I don`t do consumer debt, so it kind of balances out when I need to get money.
The south end of the lot, which is the end of the city block, slopes upward sharply, and is about 9 feet higher than the rest of the lot. This may not seem significant, but it would mean I could theoretically line the units up on that south end. The main level would now be at street level, but the back of the units would be 9 feet lower, so I could potentially put the garages in the basements.
Some of the variations between my options may seem minute and silly, but I want to make sure I do this right.
My options.
1-Sell the bugger and take my money and go buy as many existing properties as I can. I don`t really make any money on this, but it releases my cash, and now thanks to this place, I have some knowledge on how to buy properties.
2-divide the lot(I don`t know if I can do this yet), build a duplex, sell both sides seperately, take the money and build a second duplex on the second lot, and keep it forever. I`d try to get basement suites in both, if the parking would allow.
3-Do a 4 unit, two story town house building, each 3 bedrooms, about 1300 SF or so. Garages in basements. Condominiumize them, and sell two of the units. I`d try to turn the basements in the units I kept into suites.
4-Do a 5 unit place. Now the units go down to a gross width of 18 feet. I could make them three bedroom units, but the secondary bedrooms are only 8 1/2 feet wide if I do that, so I`m wondering if they should just be two bedroom units instead? In this scenario, I condominiumize it, and sell two or three of the units. Basically I`d sell enough to get the price on the kept units low enough to cash flow. Again, I would suite my units if possible.
5-Design a building, get the permit, knock down the house, and sell it in a state that an investor can sign the papers and start building right away. I`d then take the cash and buy existing properties. I would expect to make some money on this, but I really have no idea how much. Has anyone done this? Any idea what % one could likely to increase the property value, if all other things remain constant?
Well, that`s all I have for now. A big thank you in advance for those of you who have taken the time to read this far. I really appreciate it, even if you don`t answer.
Thanks
Keith