Two developers work around R43 zoning limits by building a generational compound: a 2,200-sq-ft main house, a 1,000-sq-ft casita, and a garage rental unit. The three-unit setup projects $1.1 to $1.4 million in exit value with roughly $150k profit, solving space needs for extended families while keeping traffic low.
Are you in the deal room?
About the luxury spec, the truck yard, the generational compound.
I asked it, I says, how many trucks can fit? It showed me only 8 to 12. So I'm at the low end, not making a lot of money. So I said, check the zoning. It come back, told me it's R43, meaning that we can only build single-family homes, manufactured homes. This is your real option. Rent quietly, keep tenant count low and minimize traffic, or get a what's called a CUP, a conditional use permit. And then finally it says the rezone heavy play is to get it rezoned own commercial industrial, which is right across the street from an area that's going to be that. So now I said, hold on. I said, what if I added a casita to the first thing? It fits the build. It says now this is a smart hybrid play. What am I doing? What if I could make it to where I build a family compound and with a primary house and a guest house or casita? This is what it looks like. I get 3 separate rentals. I got a 2,200 square foot house, 3 to 4 beds. Casita is 1,000. Shopper garage, another. So now my exit example shows that I'm able to get out of it for 1.1 to 1.4, and the profit range, even at my low end, is $150K, which was my best end on the other side of that part, right? So on the, on the best scenario of the luxury freaking Scottsdale mansion, the best I could do was $150K. Now my lowest case scenario is $150K. People don't have the money to go put mom and dad into a nursing home, so they need a home in the back to put them in. This is powerful.
So strategy, it talks about the luxury spec, the truck yard, the generational compound.
