This week in “Real Estate Deal Talk,” we look at a vacant lot we got from a wholesaler.
Everybody keeps asking me, “How do we find deals?” I do one thing more than anybody else, I feel: I call and call and call.
Here are the stats on this lot. It is a 40 x 80 lot, which is going to make the home really tight. And that means we are going to have to build a modern home on it.
As you can see in the video, it’s a tight lot as it is. Our set-backs are seven feet here in the City of Atlanta, so that means really we are building a home that is 26 feet wide.
We won’t be able to go back much, and even when we build this house it is going to have a really small backyard, so that is definitely a con of this particular home.
What is interesting is that next door, we met landscape artists whose work we are going to check out, and they probably are also going to do the work here, which is great.
So the overall numbers on this one are:
A $90,000 buy, building a 2,000-square-foot home for $200,000, and that brings our total project cost up to $290,000 with contingency about $300,000 and then selling at between $425,000 and $450,000. We should be good to go on this one.
Now on to a look at a second lot
Another one I found is one sent to me by a wholesaler. It is in Kirkwood, a super awesome area.
Obvious problems: it’s a corner lot, and it’s super, super tight. Again, you can see the home next door and right about where the tree is, we have a seven-foot setback from that property line. Then, because it is a corner lot in the City of Atlanta, we will have a 14-foot setback from the edge of the street.
What that really means is we have a 15-foot-wide house, which is absolutely nuts.
So we could go ahead and apply for a variance and build that into the overall due diligence period. But the seller does not want to do that, which is why the price is discounted so much.
The question is, how confident are we that the City of Atlanta will be as responsive in pushing this variance application forward? We are not so confident about that, because they are super backed up right now.
So I am not entirely sure we want to tackle this because of that. And I do not want to hold on to something for six to eight months while it takes time to get rezoned and then do everything else we would have to do to make this possible.
But overall if you want to hold on to it, and go through that process and keep your fingers crossed, then that works for me.
See last week’s post on walking through a flip and what is planned for the rehab.
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