Extra! Extra! Lot!
Good Day BP'ers!
I am looking for some opinions on this deal that I am looking to go through with. Basically, the house I am looking to buy includes a separate lot in behind that fronts onto the parallel street. The lot is included in the purchase price. The deal would stand on its own merit if said lot wasn't included, so in a way it's gravy. From my preliminary analysis, my best guess is the lot is worth between 20 and 30k. It has been severed and requires a minor variance to be built on (basically the lot is 36 front ft and the city wants minimum of 40). However, there is precedent for this type of variance to be granted. So, that being said, what would you all do/what have you done in a similar situation. Im debating between selling for cash as soon as possible, and then using as a nest egg for next purchase, or holding and developing the lot down the road (probably a purpose built SFR with accessory appt). Also, is there something that can be done to help with the financing (ie. leverage the lot into a second mortgage, or larger first mortgage so as to drop my initial down payment requirements?)
Thanks and I look forward to everyone's ideas and advice.
-Tyler