Small Property In Conshohocken - Large Potential?

I'm a big fan of real estate. My father always had a handful of properties that he would pick up when they were distressed and then would turn them into rentals. However, living in Renovo PA, it's a lot like owning Baltic and Mediterranean Avenue...

So as a young man looking to start a bit of real estate investing, I've been kind of cheering the housing downturn. Prices have come back down to earth, and mortgage rates are more affordable than in the past 10 years. That said, I'm looking for something that I could handle renovating and turning into a nice house for the next few years.

That's why this unwanted and unsellable duplex in Conshohocken has caught my eye. I called the Coldwell Banker agent, Carly, and she showed me through the property Thursday after work. Yes it's zoned as a duplex, but I don't know if it's even fair to call it one; the bottom floor is a very small studio, and the second and third floors are no larger than 11' by 16'. The agent told me the borough won't allow the building footprint to be more than 60% of the property, so I'd have to get a footprint to see if I have any space to expand. The back yard is nonexistent, the whole thing is old and ugly.


The current asking price is $139,900, for 581 sq ft. That's $240 a sq ft, which is average for modern upscale townhouse, but well above average for a fixer with limited potential. Translation: although price is small, the space is even smaller...

After walking through, can't help but think if this is a perfect building challenge opportunity. I could see myself pushing it back into the hill if I'm able, on top of the second and third floor, I could split the space with a green roof and deck, since the back yard is so small.

Here is the current housing layout, recreated by yours truly in Google Sketch-Up I'm still working on remodeled layout options and will upload them shortly.