I'm working a deal on a triplex ( all 1 bdrm and occupied) where the math works. Here's the kicker... It comes with an extra lot directly across the street (deeded as one lot) the seller looks like he has priced the extra "lot" into the price. My question is should I try to negotiate the lot price out ( which he seems unwilling) or maybe.... Build another set with 2 bdrms.
You mean the tri comes with a private park across the street for the tenants, or is that additional parking? LOL
If it has to be a package deal, I'd certainly beat down the lot value based on the package concession. I'd consider other uses for the lot and if you can buy that lot with your down payment, setting it aside from your sale, any financing wouldn't attaché to the lot.
That gives you a free and clear lot to pledge for a construction-end loan for additional units.
I wouldn't shy away from it, but the seller must want out and should know top dollar for the lot would be from its sale without the other property. Might take years to sell too, so your cost should be lower.
Another tip too, in buying, contract separately or assign a lower value to the lot, you can't depreciate the land. In doing that, assign a low, but not ridiculous value like ten dollars, might see what the assessed value is, set the remainder to the tri.
You can have two simultaneous settlements. Good luck :)
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