I have 5 acres near a major city in maine. I own it outright with a rough value of $42,ooo. I have been sitting on it for a few years and paying taxes, so it is costing me and not making money.
My thought has been to sell it for the cash to be able to invest? Or as some know i posted that i wanted to build a 4 cabin short term housing unit. i feeI building is a more profitable avenue, but i have a semi low credit score and no added income: but i can add my son to the business as he has a high paying job and better credit.
I could with my son just build a spec house and sell it for a quick profit as this town places go like hotcakes.
so i have three option its, well 4- sit on it some more and keep losing money. :(
what do you think?
Depending on the deed restrictions in your area, you could also put in a quality septic system and rent for mobile homes or an RV park.
I agree with Jean, if you can transform the property into an income that will give you a great return long-term. Is it in an area where short-term rentals are in demand? Or where an RV Park might make sense? You could even partner with a builder or developer to let them do the heavy lifting.
What are your goals with the $42k? is it to create a passive income? use it as a down payment for a more expensive income producing property? Say you can get into a property that yields a nice 10% annual return, would that yield more than developing your land into an income producing place?
@Belinda Lopez and @Jean Norton I have thought along these lines of short term housing- it would be a great location for one. I think long term goal would work. .. I am thinking that that would create more cash flow then just selling it for the $42K which after taxes and realtor would leave maybe $30K. But if i develope it with say 4 units... it could bring in 1/2 mill and then again when i sell it for retirement