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I want to buy a land and build a multi family house on it? is it worth than buying old house!

  • July 06 2012 - Malden
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Answers (5)

Building your own Multi family home presents some challenges in an urban area. Building a new structure will require that you meet the current zoning requirements, along with a host of other issues.

In Malden for example, the current zoning requires a 10K size lot.

However, many existing multis sit on what is called a non-conforming lot, meaning the lot size does not conform to current zoning, but they are allowed to remain as a multi.

If you were to build new, you would need a 10K lot, or get a variance from the City in order to build.
  • July 11 2013
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The benefit of purchasing property with a home already in place can be cost saving for you when you go to build your home.
 Mainly speaking... the utilities are in place and paid for. Depending on the lot you buy ---many times the water meter, gas, electric and phone need to be paid and installed when purchasing a vacant lot.  
I am not saying you can't find lots with utilities installed and already paid, you can.
 
Just food for thought --when considering vacant lots ---please beware ... many listings will say utilities to the lot or at the street. This can be very misleading....Make sure you always do your own leg work. Call the water, gas and electric companies yourself to verify what this means. Sometimes there could be a very expensive assessment that has not yet been paid!  In our area...De Luz / Temecula California we have a Zone of Benefit water assessment fee that cost $4000 a acre-with 5 acre minimum lots.  this.
When I call the listing agents regarding their own listings more times than not.... The listing agent will ask me...what is that?? I've never heard of a Zone of Benefit?  These are agents that live in the area and should know this information.
One other suggestion....I would recomend looking for your counties land information  website. 
As an example - here is the website I recommend to my land buyers  http://www3.tlma.co.riverside.ca.us/pa/rclis/ . This site will show you all kinds of information, aerial photos, water, topography etc... very helpful.
Good luck to you!


  • July 06 2012
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The best way to figure this out would be to calculate your rates of return and cash on cash returns before building. Find out what the local rental rates would be for the units. This will give your the monthly cashflow and from there you can figure out the annual gross revenue from the property. Compare that to the gross revenue you could get vs a single family or old house. This may provide you an indication of which route to go. There are also bound to be some Realtors/Brokers in your area that specialize in investment properties. Seek them out. You can't put a price on experience and knowledge. There are also real estate investment groups you may be able to join. I have owned numerous multi-family and single family investments. They are vastly different and each one has it's pros & cons. There is a great book called "The Millionaire Real Estate Investor". It's a great read!
  • July 06 2012
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Profile picture for Ofe Polack

Discus your options with a buyer agent.  The agent can do a price comparisson for you.  Good luck! 

  • July 06 2012
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Hi  I can appreciate your concern.  When it comes to decisions like this one.  Nobody can really answer for you. 

What is worth for you might not  work for me.
There is no easy way, but to get .busy and find all the facts.

You are just going to have to get all the information compare and   reach your own conclusion.

Best of luck to you it is a big budget project.
  • July 06 2012
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