Build onto lot to sell?

[SCOTT WALKER]

I'm new to this forum, so forgive me if this is better discussed in a different section.

About 8 months ago I bought a residential lot in an older, low-income neighborhood in Wichita KS. A few weeks prior to my purchase, the house that was sitting on this land nearly burned to the ground, leading to it being demolished and the land going up for sale. The homeowner decided to move to another state and told me he would sell the land to me for $1,500. I checked with the county and the land appraised for $10,800. With the potential ROI numbers buzzing through my head, I couldn't see any reason not to take this offer; so I did.

Now that some time has gone by and I've generated practically zero prospects with my land FSBO listing, it's beginning to dawn on me that this land is probably not going to sell without some more money and work on my end. As I mentioned, this is a low-income area that someone looking to move to is most likely not going to have the time or resources to build a home on it. The houses in the neighborhood were built in the late 50's/early 60's and I would say the average home value is somewhere between $70k-$80k.

It seems that the only reasonable home to put on this land would be a modular home. I've called pretty much every builder in Wichita and this is what they've suggested since no one really builds homes here for the price range this neighborhood warrants. I think a MH would fit nicely in the neighborhood and wouldn't have to worry about its value decreasing.

Now that I've told my life story, I've come here to get some feedback on whether I'm on track with this thinking or if I have no idea what I'm talking about. I have no experience in real-estate, if you couldn't already tell, and am hoping someone can offer some guidance in this scenario.

Should I build a modular home to sell or rent, or do you think that'd end up costing more than I've already put into it?

[Douglas Larson]

@SCOTT WALKER

I love land, but I deal specifically with improved lots in established subdivisions and I have tried to stay away from your kind of land (see my interview - ). That said, there are some very creative investors on BP that have me re-thinking my strategy. I also do a few rehabs each year and they can get messy and stressful.

Several weeks ago @Seth Williams had a with Brandon and Josh on how to acquire (and what to do with) inexpensive, raw land. He sells his lots all over the country with seller financing and makes a nice income stream. Give the show a listen and see if it applies to you!

Have Fun, and Make Your Own Luck!