I am in California, however I have a property in Wynwood that is zoned T5-O. It is zoned for up to 10 single family units, or up to 20 lodging (Hotel/Motel) units. It's VERY close to all the action - galleries/art work, restaurants/bars/entertainment and shops.
There are currently two units, both in rough shape. They are renting for roughly $3,000/month right now which isn't worth the effort. And I say roughly because these are not the best tenants in terms of payment. I'm tired of the hassle of dealing with them and I think the neighborhood is at a point where it's "hip/trendy" enough to bring in a higher quality tenant; ie: stable jobs, respect for rules, etc.
My issue is that I don't have the funds to develop this property to its full potential. It's making money, but not really worth the hassle. And I wouldn't sell at a loss either just yet, because the land value should only go up as new developments are springing up nearby.
I was thinking of small units, between 400-500 sq ft in size. The cost to build such a unit, using higher end construction/finishes should be $100K/unit (Assuming 400 sq ft and a cost of $250 per sq foot). I would expect these units to rent for $1200/month minimum - a fairly conservative estimate. The price per unit could be lowered if cheaper finishes were used - which isn't a bad option either and I don't think it would really harm our rent asking price.
I'm open to anything though as long as it's able to generate a profit. Multifamily, hotel/motel, maybe office or retail space.
Wondering if anyone has suggestions or tips on what sort of people/businesses to approach? The only thing I can really offer is the land. Would it be best to approach a contractor? A big name (I'd probably get laughed at or ignored) in the area?
Hi Account Closed There are so many options available for what you can do with this type of property. I just PM you. Definitely would like to discuss.
Account Closed I am definitely interested in partnering with you guys on this if you see that as possibly part of your plan. I am currently renovating SFHs in Liberty City for long term rentals and I have been trying to move further south into the Allapattah and Wynwood spaces. T5 is typically mixed use between apartments and office space so i think you could definitely capitalize on building a commercial structure with higher quality apartments up top and business space on the ground floor. I've been trying to buy SFH homes in these areas for anywhere between 90 - 100 per/sqft and renovating them for a total of 140 per/sqft when finished. 400 - 500 sq ft units in my HUMBLE opinion are EXTREMELY small and are much harder to fill with longer term tenants than say 700 - 1000 sq ft units which can accommodate working couples and families. If you could build 750 sq ft units at closer to 180 per sq ft you would be looking at 135k per unit which I think could get you up to 1400 - 1600 for a 2/1 with less turn over. 125K for a 500 sq ft apartment is a little tighter and may not command the rent you're hoping for. I've not done new construction but I do have complete renovation experience and I can also bring marketing and a financial contribution as well.
Can we schedule to speak on Tuesday March 13 in regards your Wynwood property?
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