What would you do with two vacant lots in Huntington Beach, CA?
Through inheritance, we have received two vacant lots in Huntington Beach, California. The two lots are adjacent to each other. Each lot is about 7,400 sq ft and were each appraised for just under $800K. Nearby homes on similar-sized lots sell for $1.3M to $2.4M. These are custom homes about a mile or so from the ocean. Also there are no other vacant lots in this area.
A good friend who buys, builds, sells, and rents real estate has offered to put up the capital to build a house on one lot. He thinks that he can build a nice house for about $500K and then sell it for about $1.5M. We would then use that capital to build on the second lot. The only downside is that he currently has another project consuming his time and capital. He thinks that it would be at least two or three years before he could work with us.
Although we don't have any experience in real estate other than buying our own home (here in Orange County), we like the idea of developing the property. We live about 20 minutes away from it.
Since we don't have the capital to build, our options are limited. Here is what we are considering:
- 1. Sell both properties as-is and then use the proceeds to get into real estate buying something else.
- 2. Sell one lot and use the proceeds to build on the other lot.
- 3. Other???
So I'm looking for advice and ideas. Thanks!
BTW This is my first post here. I discovered BP through listening to podcasts on Spotify.