Lower COC return for more opportunity?
Hey everyone, I'm getting ready to close on my second deal in a year and a half. (Behind schedule) the property only shows a 8-9% return which is low. The reason why I'm even interested is because it sits on a double lot. I found a local contractor who builds these small homes for about 35k and I know I can add value to the land and also add a extra 12% return in my pocket as well as new construction tax write offs.
I already called and confirmed with the city I can do it legit. Question to you guys is would you take less of a return on the first property for better long term numbers?
( please take note this is in a city that is looking at a 18-23% growth population wise in the next 10 year's)
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@Eric Calabrese I would certainly consider it. Whether i Did would depend on he specific circumstances. The effort and timeline would be key considerations for me.