Updated about 5 years ago on .
Great land, no house. Should I build?
Hi there! I'm Kristyn, a relative newb to real estate investing. I've been doing about two years of research and learning the best I can and I think I have my financing solidified, my market well understood, and realistic goals. However...
Recently, a friend (possible investing partner down the road) told me about an up-and-coming neighborhood in our city that is a few miles away from some major investments in our economic center and is receiving infrastructure upgrades (sewers, drainage, etc.). After driving around in the area and some similar I read about, I realized that most of these homes selling below market value in these areas are rehab projects I don't feel ready to pursue on my first trip around the block. However, thanks to Houston's total lack of zoning, there are small, undeveloped lots that could fit more modern, multi-level duplexes or SFH. The lots are seriously cheap and the builders of the above-mentioned modern homes are a-plenty, and since I won't be looking to build anything complicated or palatial, I wonder if the numbers would work out. Maintenance costs would be low for awhile and energy efficient for the tenant. And I can validate by the new construction on every corner (new build next door to crack house next door to empty lot) and the roads torn up from city renewing infrastructure that the appreciation will be huge in the next 3-5 years.
To be honest, I REALLY feel like I'm over-simplifying this whole idea. I'm sure one of you can point out something really obvious that would make the numbers just not workable.