How Can I Determine The Value Of A Vacant Commercial Lot?
Hello fellow BP members!
I'm a novice wholesaler. Through my marketing, I met the owner and landlord of a single family house in Coatesville PA. The house is a 4/1 and rents for $1500 per month. However, as of today (10/4/17) it is vacant. The current market value of the house is 120K and I have it under contract for 105K. In addition to the house, the contract also includes 2 vacant lots that are adjacent to the property and an other vacant lot across town. The two adjacent lots are zoned for both residential & commercial use. As such, the property tax for the house (which includes the two lots) are $4,863 per year. This number makes the numbers in a buy & hold scenario for the house marginal (8% cash on cash & 6.99% cap rate). I feel the true profit potential is in the 3 vacant lots. More specifically the two zoned for commercial use. So FINALLY, my question is how do I determine the value of the lots for commercial use and how do I go about getting them in front of buyers/developers?