I found a duplex that is requiring the plot of land next door to be sold with it. Would you consider a deal like this. If so what type of negotiations would need to be in place and what would be the best type of financing on the deal?
Is the plot titled separately? Is the duplex located in a desirable area? If the answer to both is yes, then I would definitely look at deal, with the thought of simply breaking off the 2nd lot and developing it, doing a JV for development, or simply selling it to a developer. As with anything, the numbers have to work. If the lots are titled separately, then I would run the numbers as 2 separate deals, figure out what the value of the lot is vs. what the ARV of the duplex is, and then how much of the purchase price I feel would actually be applied to the lot. That lets you do an analysis of the vacant land, even though the 2 parcels would be included in the same transaction.
If the lots are not titled separately, I would contact the local zoning & planning office to find out if I could split the lots, what the process is, how long, cost, etc.
Given the market in DFW and a dearth of quality duplexes in the Far North Dallas area, it could be a great opportunity, depending on the location.
Whats the property worth? The vacant lot value?
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