Bought a single 5000 sq ft lot Now What?

Question

John H Huston · Answer

Matt,

Congratulations! Sounds like a good thing to be doing.  I suggest you consider putting it right out for resale at $9000 (at least.)  A friend of mine who has done extremely well over the years has 2 rules about property purchased for resale: (1) move quickly; and (2) the property is worth more than it cost, simply because you bought it.  Attitude & confidence.  Works for him.

Good luck,  John

Tim Johnson · Answer

Can I ask, what were you thinking...spending $4500 on a lot in a bad neighborhood with no plan to generate revenue?

I don't mean to be rude.

Jacob Sampson · Answer

I think you should have found out what the city would or wouldn't allow before you dropped cash on the property.  I would recommend putting the lot back on the market and hoping that someone else comes along and buys it.  Take your loss as a cheap learning experience.

Putting brand new construction into a so-so neighborhood doesn't sound wise to me.  Don't throw good money after bad.

Jacob Sampson · Answer

It's good that you did do the research.  I was worried that you purchased blindly.  You can't remember or catch everything.  Luckily you aren't talking about much money.  Rule #1 make your mistakes small ones.  Just as you have.

Matt S. · Answer

I was thinking of putting a trailer on the land and rent-to-own the trailer and collect lot rents separately for life. However, city code is preventing me. So now I'm at building a house or apartments. What do y'all think?

PS: you can't hurt my feelings. Give it straight.

Jim Adrian · Answer

How about a carwash? or 2 row houses that are 3 stories tall.

Rick H. · Answer

Old Chinese saying: "Marry in haste; repent in leisure"

I'll spare you the misery of asking the Dr Phil, 'What were you thinking?' question.

If you need cash, I.e., spendable money, you would be wise to barter what you have for something you need.

If you don't know if your 4,500 sq ft lot is buildable, go to the city/parish office and determine the zoning, including setbacks and property usage.

Since you've spent your cash you need to get creative and be open to what might be a multi-step exit plan.

Swap for a vehicle that you can trade quickly for cash?

Jeff V. · Answer

@Matt S.

What is the zoning for the lot?

We had the same problem with  a double lot that we bought.  Was going to put a mobile home on the lot but city said it must be a doublewide over a certain sq ft...  can't remember the number, but the lot is too small for a doublewide.

We are looking at buying a finished portable building as a tiny home 1/1 and possibly renting that out.  This also has to be approved by the city, but they seem to be ok with doing that on our lot.  Our's is zoned B1 Transitional Business...  basically a mixed residential/commercial zoning.

This may be something to look into for your lot, not sure what area or zone it is in though.

Jeff V

Matt S. · Answer

Yeah, I spent a lot of time researching myself for the codes, however I missed one. Even, when I asked code enforcement to show me, it took him about 30 mins to find it. However, I now know, just call.

Bought a single 5000 sq ft lot Now What?

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