We've put an offer in on an absolute dream property that is two adjacent lots. There was a bidding war, but we should find out today.

The higher lot with AMAZING views has an older, severely neglected house. It has a stone pathway that leads down to the lower lot that flattens out again.

Due to the condition of the house, it's definitely a cash offer sort of situation. Our plan, should they accept our offer, would be to build a minimally expensive 'guest house' on the lower lot. We'd want it to look acceptable from the outside but thinking bare bones finishing on the inside for now. When that was done, we'd move into the property and start renting out our current place. Then we could take our time and decide if the old house can be rehabbed or would need to be torn plan for a new construction.

It would give us a lot of flexibility for timeframe and get to enjoy the property sooner. Also, since it's two lots we could always rent out the 'guest house' later down the road or even sell that property if we absolutely had to.

I've done some due diligence and the feasibility of building a small structure on the lower lot (city codes, talking to a city council person, survey, etc.) and it SHOULD be feasible.

That being said, is this an insane idea? Any idea a ball park range of construction could be?

This is a one in a million type of lot to us. If we don't get it, so be it, but we're willing to be creative here if it's reasonable.

It sounds like a great idea to me.

Thanks. We're soo freakin' excited. There were tons of cash offers, but we really sat down and put what we thought was our best foot forward. If we get beat out by a slightly higher offer, we'll have to be at peace about it. We should find out sometime today though and I'm distracting myself with research. Also, if our offer is accepted I want a head start as much as I can with research.

How much of the work can you do yourself on a guest house? We built a small one at our lake house & it was very cheap. That said, we stockpiled materials for a while & worked around those when designing. For instance, we found a shower pan & door on clearance at a big box store - I think we got the pan for $20 & the door was a great looking special order that was returned & in their way for like $50 - that determined the shower size for us. We got some great, new windows on fb marketplace - again, it made us change the placement on some of our plans - but came out great & they were cheap!

If you are planning on it really being small, search "left over" and you can find great deals on other people's over bought reno supplies, like flooring.

We did pay for the slab & roofing, but pretty much did the rest ourselves. We are are out in the county, so could do our own plumbing & electric and are very confident in our ability on those. Plus we have a master electrician 2 lots down....

Dummy up your email & I can send you a few pics.

I'm really, really good at sourcing materials. I wouldn't be comfortable doing anything with the shell (foundation, roof, electric, plumbing, framing) but I would be more than ok learning finishing things along the way. I don't have experience, but I am resourceful and methodical. I started a new hobby of acquiring and refinishing mid-century furniture last summer and I've had amazing results. I got a first generation eames lounge chair in horrible condition and basically rebuilt it and sourced original parts, refinished and repaired leather and it's amazing. I could make thousands in profit if I sold it, but I love it. Just an example.

I could also salvage some materials from the house up top, too.

I should also add, I would enjoy sourcing and finishing myself as much as I could, but I don't have any experience.

Here are a couple of pics to help make a little more sense of the property.

Upper property
https://imgur.com/7FhNxbP

Beginning of lower property looking up at upper property. The topography flattens out again
https://imgur.com/d7mcgE5

Upper property looking down on lower property
https://imgur.com/TCzJTP2

start at $200 sq ft

I've been told subs charge more in nicer neighborhoods as well.

Projects like yours are fun for us! I see why you love those lots! The stonework & walkways are amazing. I just sent you an email. If you get it (loaded with pics) you can edit your address out of your reply if you want to.

Update. Sellers agent e-mailed our realtor and said it will take executor time to go through all the offers. The waiting is not easy

Good luck!

Did you get my email?

Chiming in here - I saw bare bones finishes for the guest house build; IMO, that's something I would steer clear of. Finish it out nicely from the outset, that way it is done and done right. Obviously don't have to go primary residence finish out but do it in such a way where a potential guest is impressed/expectations exceeded.
it
Without knowing anything about the property as a whole, just a hunch, seems like best thing would be to demo the existing main house. If it is your 'forever land,' I doubt the house footprint that currently exists is your necessary forever footprint.

Quote:

---

I saw bare bones finishes for the guest house build; IMO, that's something I would steer clear of.

---

Ours is a guest house at a remote, private lake so it is appropriately on the rustic side, but not bare bones & people love it. I think OP will build to suit his neighborhood. It can be done on a budget & be really cool.

I did. That's incredible what you got done and with the budget you did it within. Thanks for sending it.

schwack schwack said:

---

I think OP will build to suit his neighborhood.

---

I'm the Mrs. It's all good though.

Quote:

---

I'm the Mrs. It's all good though.

---

Ooops.

Just got this text from our realtor.

Seller's agent was really nice and easy to work with. I like him. Here is his response to me, just received this:

"Seller did not select the highest offer (above $X).
It was a builder who intended to tear down and build a McMansion.
She selected one very close though.

I'm still in somewhat shock of getting six offers $X and higher.
My heart hurts for the many deserving buyers that missed out.
Please give my best to X & X."

We did cash, no option period and no contingencies and were in the top 6 of 23 offers. This market really does stink. Kinda over it. Obviously wasn't meant to be.

Sorry to hear it, but there will be another.

Thanks. We've been looking a long time. I guess we just want to wait for something special.

jamotoe1 said:

---

Thanks. We've been looking a long time. I guess we just want to wait for something special.

---

Your best bet of something special in these markets is to find it before it even gets listed. If it gets listed and you think it's special, chances are some asshat from the Northwest or West will too and pay 10% more than list price.

Oh I feel ya. More like 37% over list though.

I've sent handwritten, personalized letters to all the properties in the area that could be a potential. I've had quite a few responses and established relationships with several of those owners, but aren't quite ready to sell. All our friends in the area are aware of what we're looking for as well if it comes up with neighbors, etc. I've also gotten to know the realtors that specialize in that area and have been given the heads up on listings, but nothing has materialized so far.

Anything else I should be doing to find things before the go on market? I'm always open to new ideas and suggestions.

We know we were close and the sellers agent really liked us. I'm sure it's a long shot, but we're going to see about backup offers.