This “Prime” Crown Heights property, a little one-story shell across from Franklin Park, is for sale. They are asking $339,000 and soliciting cash offers. It seems like a very good price for the land alone.
“If the seller was properly motivated, and a little patient in terms of time to close (which they might be if they get no cash offers fast), a 203(k) loan on the property would turn up a very nice single-family home for the price of a condo,” the other day. An FHA-backed 203(k) loan, which would pays the seller and gives you cash for renovations, can be had by anybody who can pony up a 3.5% down payment. As long as you use the existing ~1000-square-foot foundation to erect a three- or four-story building, it could work.
If the plot is zoned R-6B, which it seems to be, somebody could erect a 4-story building (max buildable: 5200 square feet), one condo per floor, and if it’s short enough, no elevator would be required under the building code. Such a plan could be realistic – judging from a few small “infill” buildings recently built in the neighborhood.
With 5200 square feet to use, four stories would clock in at 1300 per floor, with a nice roof deck and back yard to boot. By going condo, you could get money back quickly even at $570,000 per floor. So why is this still on the market? One issue could be that no one is giving out construction loans right now (hence the cash-only situation, and the interest in 203k loans).
