Development superstar!! Keep for rentals or flip. Rent the current house while permitting. Tear down existing and rebuild? Zoned NR3 for one single-family + 2 ADUs. The current house has not been updated in a looong time. Value is in land. Small house in great location with single-car garage. Current rent is well below market given lack of updates and length of tenancy for current tenant (19 yrs.).
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