My husband and I have been looking at a delinquent tax list in an area of our town that could possibly be gentrified in a few years. There are so many empty lots, whole blocks even that cost $4000 or less. I'm wondering if it is worth buying some of these lots to build structures (single family vs duplex) on them to possibly rent out or sell. I think right now the neighborhood is more of a renter community right now, but in the future these houses or duplexes could be sold for way more than it cost to build them. I know it costs way less to renovate houses than to build from scratch but this seems like a good opportunity that is presenting itself. We are inexperienced though so any feedback would be appreciated.
I don't have a ton of experience, but I feel like at that price - why not?
A savings account is going to get you <1% appreciation for the foreseeable future. Buy a few with any non-essential cash as a way to diversify, and as you keep an eye on rents, development, and mortgage rates - begin to figure out how you might finance construction.
In short, I think its a low risk decent idea.
Be very careful, depending on your state, it’s very hard to get clear title for tax defaulted properties, you usually need wait redemption period expires then suit quiet title for marketable title