3bd 2ba on a large lot. What are my options?

Question

Hi,

I am about to close on a rehab property with plenty of potential for either a hold or a flip in the Awendaw area near Charleston SC. The house is situated on a 1.5 acre lot that appears to back up to river front/marsh land. I am having a survey done to determine the exact boundaries next week. What are some ideas that can maximize the potential of such a large piece of property for a relatively small price? Maybe a mobile home behind the current house? I went into this with the idea of a flip but if I can make good use of the property it might make for a better long term hold.

I appreciate any input,

Chris W.

Troy Gandee · Answer

@Menon Whitsitt You could have a difficult time trying to utilize any of the land for mobile homes. I agree with @Russ Schneider and @John Semanchuk about the flood insurance. I think Awendaw and McClellanville are trying to reduce their mobile home presence near 17 in anticipation for expansion. There are tons of lots available up and down that stretch of road, too. Most of those lots are HUGE. If you could offer a smaller lot, it may contract well to some of the bigger ones.  If you keep it as a rental, consider that the whole area should be growing in the next few years. Not only would you be getting rental income, but the property should appreciate. It would just be kind of a long term flip! I'm a Realtor. I'd be happy to pull some comps and email them to you.

Menon Whitsitt · Answer

Thanks everyone for all the responses! I will do my best to touch on everyone's suggestions and questions. I will definitely be doing some digging to see if subdividing is a good option. The big questions that I am looking into currently are what kind of permits will be needed and can I get city water or a well/septic system back there. Thanks again for your input everyone.

@John Semanchuk The property is in a flood zone and I am told that the flood policy will likely be $800 yearly. $1400 for the standard insurance policy.

@Doug MortonI think the lot should have plenty of space on the right side for an access point. I don't have any experience with carving up lots but I'm guessing it cant be too hard to have an easement/driveway to the back lot cut into that side. I assume that a lot of those questions will be answered once the survey is complete?

@Troy GandeeI am working with my brother/real estate agent Brian Whitsitt on this deal and he has come up with a conservative selling point of 170,000 if we were to flip. I would greatly appreciate a second opinion!

@Russ Scheider Thanks for the warm welcome to BP and I will definitely be giving you a call in a bit to pick your brain about your construction experience around here.

Doug Morton · Answer

Another thought is access to the back of the lot.  Is it wide enough for a flag lot access point on the right side?  Or will they have to share the driveway?  I never did look into that when I had it but it crossed my mind.

Russ Scheider · Answer

@Menon Whitsitt You are making me wish I had bought that deal from @Doug Morton!  I wish you great success with it.  You are smart to tap into the "Think Tank" on BiggerPockets.  Some of the members of this site have been extremely helpful to me.  I don't have any specific suggestions for you, but @Melissa Searing is right about the northward expansion of Mt P, and @John Semanchuk brings up a good question regarding flood zone.  The flood elevation may impact your ability to get permits.  My Lowcountry construction background has given me some experience with flood elevation and permitting.  I am always at the other end of the phone if you need me.

John Semanchuk · Answer

The mobile home idea might be a good way to sit on it with the eventual plan to build a raised house behind the first.   How's the flood insurance?

Brent Coombs · Answer

Or, flip the Lot and keep the House.

Or, flip both.

Or, keep both...

Melissa Searing · Answer

Awendaw is the new Mount Pleasant. If the property has a good location, I would sit on it!

3bd 2ba on a large lot. What are my options?

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