Quick sell or subdivide?

4 Replies

I am semi-inheriting my father's house in Maine. My mother has agreed to sell me the house for $150,000.00 even though it is worth $285,000 with must do repairs completed. It is a 1950's ranch with 10 acres of land. It has approximately 1400 feet of ocean front (tidal river about 5 miles from the top of Penobscot Bay).


The house needs some work even though it has been reasonably maintained.

Must have's
New Septic System

Leaky Basement repair.
Repaint exterior

Should do's
Complete rewire from 100 amp service with tube main breakers to modern 200 amp service.

Replace old 1950's windows that are cheap aluminum balanced or wood channels that have been pained shut, but at the front of the lot near the road in the front corner of the property.


Some options (many more this this probably)

1. Do the must do's and sell.

2. Do the must do's, subdivide the property to X number of lots (3 ocean front lots is the max) and sell each lot.

3. Do a full renovation to make the house price compatible with the level of ocean front houses that might be built on the subdivision so that it does not detract from the Ocean lots. Sell eveything.

Thoughts?

Sorry Y'All.  Did not mean to post this here.

Subdivision, especially with waterfront, is very expensive and complicated.  Do you have enough cash to complete the engineering, etc that is required?  You can make a profit, but it's not quick or easy.  You should talk to the town planner and local code enforcement to see what exactly is required.  You should also find a local Realtor who understands land to get a price opinion for the completed subdivision.  If you need an engineer, I know one who I can recommend.

Originally posted by @Amy A. :

Subdivision, especially with waterfront, is very expensive and complicated.  Do you have enough cash to complete the engineering, etc that is required?  You can make a profit, but it's not quick or easy.  You should talk to the town planner and local code enforcement to see what exactly is required.  You should also find a local Realtor who understands land to get a price opinion for the completed subdivision.  If you need an engineer, I know one who I can recommend.

I have around $125,000 in cash reserves after purchasing the house.  Do you need an engineer or a land surveyor?  My plan would not be to install any road ways, but to just layout the lots, covenants and easements.  Not planning on a developing, just dividing.

You might need both in order to have a legal subdivision.  You have to deal with state subdivision law, shoreland zoning, and any other local zoning.  They will probably make you build any necessary infrastructure before you can sell lots.  Also, your land will be taxed as individual lots, even as they sit on the market unsold.   If you are just splitting the lot in two, you don't have to abide by state subdivision requirements.  You can split off a lot every 5 years.  If you have enough road frontage for two lots, you might get away with just a survey.  Your first step is to talk to the local planning dept.  Have fun!

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