Bought a vacant lot in Fair Park, so what's next?

6 Replies

HI folks, I just purchased a vacant 7,000 sq ft lot just south of Fair Park for $20,000. It was the cheapest cost per foot that I had found in months and it was also much larger than the average 3,000 sq ft lots that I mostly came across, so I jumped on it the day it was listed. I was itching to make a move and this felt right mainly because my gut tells me that South Dallas has no choice but to develop.......someday. And since my only annual overhead is $250 in taxes and $180 in insurance I didn't feel that I had to have an immediate plan.

Also, if the DCAD increases these values even 50% in 2020 compared to the 100% in 2019 I may be able to sell it short term for a quick profit. But holding long term is more of my plan as of today. 

Now I am hoping to connect with others like me who have owned real estate in South Dallas who can share their experiences of renting and/or selling newly built homes in these neighborhoods. I have rehabbed two houses so far (while I lived in them), but new construction is foreign to me. Much less how to ensure profit. 

I'd love to here your stories so that I can start to get a better feel for what is to come for South Dallas. 

Is there new construction going on in that area? Your question of "now what" should probably have been asked before you made the purchase. We have city lots in our area that I wouldn't take even if they were free because I don't see that anyone would ever build new construction in those areas. Hopefully this is a desired area you invested in.

@Josh Price I agree that area is hot and while I don't know the specific plot you bought nor if it has encumbrances, for $20K it could be a GREAT opportunity. Keep us posted as you get on.

Originally posted by @Josh Price :

@John Teachout

And please forward all free lots to me.

lol, just Friday I spoke with a neighbor to a property we're working on regarding his mom's house (it's a scrape in my opinion) and I told him I didn't want it. Even for free. The house is no good and the lot is too small to build new construction on.

Sounds like what you bought has some good potential.

 

If this lot is twice the size of other lots, and there is new construction or rehab projects going on in the area, you may want to split the lot and build two modest houses - something that matches the other houses in the area with a few more amenities and upgrades to attract renters/buyers.  You should be able to get a lower cost/sq.ft. to build two houses side-by-side from your builder.  New build range can be from $70-$100 /sq.ft.  Compare this to existing home sales cost/sq.ft. and rental rates to determine your profit margins.  Good luck.