Options for a vacant lot
My wife and I live in Utah and bought a rental property in Spencer earlier this year. The backyard of the property was split into a second lot by the seller. It's on a corner so both lots are on a street.
We ended up getting both lots in the deal. Each lot is .141 acres. Things are going great with the tenant in the existing house.
We're wondering what we should do with the other lot. Sell it, build a tiny house or regular house and turn it into a rental. Or just leave it as is.
Interested in feedback from the community here. Any ideas? How would we go about exploring the different options?
I would first check zoning with the city to see what you can do there. Once you've eliminated what you can't do move forward and see what you would want to do from the given options.
If you need any help I'd be happy to help in licensed in the state.
-
Real Estate Agent Utah (# 12669906-SA00)
I would recommend selling or renting out spaces on Neighbor. Seems like a pretty small lot to try to build on
#3 Managing Your Property Contributor
Talk to the city, but if 0.141 acres is about 50x100 ft-standard city lot if my math is right. I'd try to build a normal sized house with a legal suite or a duplex. You said both lots are on a corner, but then the 2nd lot is the backyard-so I'm guessing it has access from one street only and the lot with the existing house is one the corner portion.
#1 All Forums Contributor
- Investor
- Virginia
Quote from @Taylor Howe:I would look to sellit if its buildable, if its not buildable as a 2nd lot look into putting an ADU unit on it and rent that out as well.
My wife and I live in Utah and bought a rental property in Spencer earlier this year. The backyard of the property was split into a second lot by the seller. It's on a corner so both lots are on a street.
We ended up getting both lots in the deal. Each lot is .141 acres. Things are going great with the tenant in the existing house.
We're wondering what we should do with the other lot. Sell it, build a tiny house or regular house and turn it into a rental. Or just leave it as is.
Interested in feedback from the community here. Any ideas? How would we go about exploring the different options?
Is there the opportunity to purchase a different house and move it on to your lot? I know that sounds a bit weird but that is exactly what I am doing right now. My partner and I are buying two houses that would otherwise be demolished (we got them for very low $) and are moving them to two vacant lots he already owns. We are installing basements on the lots and adding fully conforming bedrooms in the new basements. We will then rent these out. We have a strong rental market in the town I live in so renting them out is not an issue. Just a thought.
Talk to some builders about the cost of construction in your area. That is going to help you run the numbers on whether or not a new construction tiny home or traditional home will cash flow enough to justify the build-out.
Figure out what the cost of construction looks like, what the appraised value would be on new construction in your area, and what the rent rate is on new construction. Then you will be able to make an informed decision on what path makes the most sense.
Could be best to just sell off the lot as-is.
Call the zoning department of the city. Utah is not an ADU friendly state, I thought you had to live in the house to have an ADU. Lot size could be an issue as some areas have a minimum lot size for building.
My city has a garage requirement for new builds, killed a potential deal for me, I wanted to convert a dental office into a duplex but was informed I would have to build a garage for each unit...
You could rent it out for rv storage or something like that.