So I came across a deal recently.
Homeowner is selling his home (no longer lives there) with additional 10 lots (sub divided) all basically on the same land. Home owner had bought the surrounding land for privacy many many years ago. Now he wants to sell it since he is up in age.
Total sale price $250k.
Main property 1500 sq
3-4 bedroom with 1 1/2 bath
1 lot is 60 x 100
9 other lots are 40 x 100
Homes have recently sold in the area for 230k-275k (original homes, the usual interior updates)
I want to purchase the property and build homes on each lot. lots are zoned for residential single family.
Here are my questions.
1. Would the bank approve a loan for this type of deal (main property + 10 lots) ?
2. Pros and Cons?
3. How do I afford this deal and build homes on each lot?
4. Can you provide a estimated due diligence check (things to look out for)?