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Brad Category: Need Advice
Current Grade: B
Total Views: 619
Member Comments: 3
 Posted on: 03/19/2008
Posted by: Brad
Blog Points: 549
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I have a friend wanting to sell his SFR rental property. The problem is that it was some how rezoned to C-4 (C-4 means only warehousing or storage).  Which would have to go into effect once it's sold.  This means additional cost to tear down the house and garage and trees.  It's really not a very good property in the since of terrain.  It is kind of a trapezoid shape with the short end at the back and it drops about 20-30 feet from front to back.  It's covered with trees and sits next to a interstate on one side and more homes on the other. 

The house is free and clear and I wanted to know if anyone had any ideas for  property use, marketing, buyers, etc....  Any help would be great.

 

Happy Investing,

B

Current Grade: B
Category: Need Advice
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Brad

Posted By: Brad on 03/20/2008

Thanks for the help guys.  I found out that the homeowner had it zoned that way because he was trying to put a billboard on the property but it didn't work for some reason.  I believe that it could be rezoned back to residential for a fee.  If it is rezoned back, then the price they want is not reasonable.  If they keep it C-4, they will have a hard time finding someone to develop it.  I think it's a dead deal.

Thanks for the advice,

B

 
JohnCorey
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Posted By: JohnCorey on 03/20/2008
B, Check to see if it is grandfathered as Sean suggests. If it is check closely what that means legally. Can the home be rebuilt if there is a fire or other serious event? Some of the time a non-conforming use means people can continue to use it but the property can not be rebuilt. If that happens insurance companies might avoid providing insurance so you can not get a fresh loan secured by the property. Speak with some commercial brokers as to the demand for warehouses and garages. If there is a high demand in the area maybe the property has value after being converted. If there is little demand or the cost associated with construction are too high then you know what you are dealing with. Can the zoning be changed back to residential? Would people really want to live in the present house or in a future home given the site's location (highway) and shape? Highest and best use is the phrase that describes what you need to figure out. John Corey
 
Real Estate Investor
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Posted By: Real Estate Investor on 03/19/2008

I would call your auditor.

Also I would think that it may be grandfathered in since it existed before the zoning.

Wish i could help more - good luck.

Sean