Hello fellow Speculators,
This 1-story cottage sits on .60 acres, and came on the market just a few days ago.
Built in 1970, this 2 Bedrooms 1 Bath property has potential as a smart redevelopment project.
Pros: It’s close proximity to Bluff Rd, should be seen as a big plus.
Cons: As any experienced developer will tell you, a home’s positioning on a lot can either make or break a project. The “L” shaped lot presents a cerebral challenge.
The following projections assumes an acquisition price of $2.5M and Improvement Costs of $2.0M. The ProForma shows a developer receiving a loan/investment of $4.5M, which is 100% of the project costs at an interest rate of 8%.
If a developer was to self-finance this project, or borrow less funds at a more attractive rate, the project costs decrease, obviously increasing the Total Project Profits.
The play on this should be extensive staging so that the house is ready to rent upon completion. We feel a nicely furnished home in this location could get $375k/season.
In a worst case scenario, renting for 2 seasons could return 8% while waiting for market.
Click Link To View Proposal as PDF –Hand Ln Proposal HRP
Let us know your thoughts in the comment section below!