- 4 acres of land located in Salisbury, MA (1 block away from Salisbury Beach)
- 1.81 - 1.90 buildable lot space (zoned for 2-3 duplexes)
- Currently exisiting on lot:
1.) Mobile Home
2.) Single Family home
3.) Two family (one level)
Comps in area:
Property Type Estimate BedBath Sqft
Single-Family Home$154,000 2 1 534
Single-Family Home$352,000 3 2½ 1,920
Suggestions on reasonable purchase price?
@Jensen Jeune What's the condition like of the single family and 2-family? Can they be rehabbed or do they need to be torn down?
If they can be rehabbed, comp out the structures that can remain and comp out as if your building duplexes for the rest. ie, if the single family is the only good structure, use the ARV for the single family and the ARV of 2 duplexes. I would also comp out for 4 condos in addition to the duplexes as condo's might be selling for a higher price and are more desirable. You should assume that the investor would build the most profitable structures on the property.
If all structures need to be taken down, I would look at comps for 3 duplexes or 6 condos.
@Justin Silverio Thanks again for your responses to my posts. I hope to see you at an REI group session soon.
I believe that all 3 existing structures should be torn down as it would be more attractive to host 2-3 duplexes on the lot and/or 6 condos as you have mentioned.
If you dont mind I will send you a PM to [email protected] with specifics.
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