Wholesling a Property Zoned for Commerical and Residential

Wholesling a Property Zoned for Commerical and Residential

Dallas, TX · Member since 2017 · 2 posts · 0 votes

Hello! I am new to wholesaling in Dallas, Texas and I recently mailed my first campaign to a list of absentee owners. I'm seeking advise from seasoned wholesalers on a potential deal in Garland.

The situation - Her investment property is on one acre of land that consists of one 2 story home, two / 2-story garages, and one barn. She is renting the home to a family, the garage is leased to a landscaper, and the barn to an artist. One side of the home is accessible from a busy street and the other accessible side faces a residential neighborhood. The catch: the property is zoned for commercial but she was grandfathered in as residential when she bought the home. It seems like a great opportunity but I'm not sure where to start.

How would I run comps on this type of property? Nearby homes and town homes are selling for 215k. Everything I have studied over the past year has been related to wholesaling SFRs so I'm looking for advise on how to run comps and otherwise handle this deal. The homeowner wants 700k based on the size of the land and the property's potential. 

Any advise?

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  • Investor · Richardson, TX · Member since 2016 · 46 posts · 12 votes
    9y

    That seems extremely high for garland.  You should run comps on the land and you will see that the price most likely doesn't make sense.  Also I don't think she can legally rent out the in the barn in the garland.  You are required to fill out an application with the city for any rental property and they are extremely picky about 2nd buildings.  I have a detached converted garage on a rental in garland that was done without permits before I purchased it and they are giving me problems saying I need to convert it back to a garage.  

  • Dallas, TX · Member since 2017 · 2 posts · 0 votes
    9y

    Thanks for the help, Dane. You are right - I ran comps on the land and even with commercial property, couldn't come close to her asking price. The barn and garage are being rented for less than $400 each as a work space for the tenants but I'll look into the legality of that. 

  • Columbus, OH · Member since 2017 · 36 posts · 16 votes
    9y

    @Bethany Orheim You can also call the city zoning and planning department and find out if it can stay residential or if it has to be commercial once sold. I've had to do that with one of the properties I was interested in in Ohio. A lot of times they are willing to work with you since you are working on buying the property. Just don't tell the owner what the city says. I made that mistake and suddenly the owner realized he had a lot more options then he thought and decided not to sell. Newbie mistake for me, but live and learn.

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