Updated over 2 years ago on . Most recent reply
Vacant Lot - Sell or Build
Hi BiggerPockets fans!
I'd love some advice from my fellow investors. I have a vacant lot (almost .5 acres) overlooking a lake in Payson, AZ that my Dad gifted me over 12 years ago. I was thinking of mailing the two neighbors and asking if they would be interested in purchasing versus someone else (or myself) who would likely build on the land which they have enjoyed vacant for some time now. The lot is steep and we had an architectural engineer outline how the cost to remove boulders and build up high (where there would be a better view) would be quite substantial but building lower by the road was more feasible. I'm not exactly excited for my funds to be tied up for a year while the house is being built but I could borrow against myself (TSP - government employee) or sell some stock/use some of my cash ~$130k. My goal is to continue building my portfolio/empire - there are no emotional ties to this place.
Would you sell? 1031 exchange? Build on the lot? Put up a for sale sign so they're enticed/nervous/encouraged to purchase? Mail letters first? I want to make sure I would get the best offer obviously and have never sold land previously.
Details:
| Full Cash Value (FCV) | $57,899 |
| Limited Property Value (LPV) | $43,514 |
| Primary Assessed | $6,527 |
| Secondary Assessed | $8,685 |
Thank you!