Looking for any & all help/advice on a potential deal in Jersey City Heights portion of New Jersey. I have an off market deal on the table for a Single Family property (although it's being used as a 2 family) in Jersey City Heights portion of NJ for $275K.

While that's a pretty good deal for the area, especially for 2 family (JC Heights is blazing hot), the condition of the interior is it rough shape. Two tenants there currently are not living in conditions I would be comfortable with in addition to the legality concerns. Major repairs would be needed, probably 100K worth plus the re-zoning issue, now the deal doesn't look as good.

Still, even as a dump the property is in such a great location, I'm pretty sure it would go on the market for $300K maybe even $325K AS is. The taxes on it are nice and low. Market is still going up. Could I get the deal down to $250K? Maybe, but not much more, the owner is aware of what it will go for on market and almost certainly won't take less.

That leaves me with the final option of buy for $275-$250K, tear down, re-zone to a 4 family (owner claims he checked with city and this could be done on his lot although obviously I'd double check that myself), and re-build as a brand new 4 family that could safely net $1800/unit if done as 3BDR/1BTH. And this comes the the heart of my question....

Anyone have experience with a buy, demolish, re-zone, and re-build in Hudson County? As a relatively new investor (only 1 unit to my name) I don't have a clue where to start, other than I realize this is a risky move and I would need an architect.

Some really ballpark estimates I'd like to check, first with eye ball test from the very experienced BP Members :)

Land Cost - 250K
Tear Down - 25K?
Rebuild to 4 Family - 250K?
Do these figures seem realistic? Assuming no underground oil tank....was told none there

If (and this is a huge IF) I could keep it under 550K all-in and make it a 4 family that would be a big win and in theory would cash flow. Realize lots of risk but return might be worth it.

Not sure where to start on this one....any help, even from out of state would be greatly appreciated!! Thanks!!

@John Errico

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