Updated almost 4 years ago on . Most recent reply
HELP: analyzing the value of a single parcel with multiple houses
Hello everyone, I am hoping to get some assistance estimating the purchase value of a unique property. This property has (3) individual houses on (1) two acre Parcel. The goal is to rent all (3) seperately, (1) is already currently rented.
- House #1: 2 bd/1 bath/roughly 900 sq ft. This is currently rented long term for $700. No plans of rehab.
- House #2: 3 bd/2.5 bath/roughly 1800 sq ft. Estimated rehab of 20k. Plan to aquire long term renter for $1200.
-House #3: 1 bd/1 bath/roughly 500 sq ft. Estimated rehab of 10k. Plan to do short term rental or Air BnB.
This property seems to be a gold mine for the rural location, which is expected to see great population growth in 5-10 years. I can't quite figure out why it is still on the market after 60+ days when the seller is asking a fair price from my knowledge and has dropped price 30k within the listing time frame. Current price is $239,000.
Am I missing something? Is there anything in particular I should be afraid of? Should I be concerned with the legality of renting these three different houses on one parcel?
Any advice to help me evaluate this deal and why its still on the market would be greatly appreciated. Thank you.