Quote:
Originally Posted by Slava
I think that today you get that bump, but do you get that if all the zoning is the same? And, as I said below, I should've put the purchase at less than the full value of the house to make this more realistic.
Ok, so they buy the house next door for land value, say for $600k and build a 4-plex. This was my point in saying that I was just making up numbers and I guess I shouldn't been so generous in saying that the developer was paying full freight for the house next door.
I debate the idea of the marketability though. I feel like a house between two SFHs is more attractive than one with a 4-plex next door.
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Just because a developer is buying it for the land, doesn't mean that's what it's worth. If there's a house on it, that's part of the value. If the owner is willing to sell it for a ridiculously undervalued price (hint: they're not unless they're morons) you should buy it and flip it for a quick profit.