What to do with Commercial Lot

Question

I’m acquiring a commercial lot as a part of a portfolio of residential lots and SFRs. It’s cleared and level (.32 acres) with nice main road/hwy frontage (on a corner) and in a D- area but walking distance to a military base. Surrounding businesses include two tailor shops, car mechanic/lot and a small BBQ joint. I’ve locked it up for $39k and tax assessment is $55k. Completely out of my wheelhouse so would love opinions/suggestions on an exit or hold strategy.

Henry Clark · Answer

Pop up street venue.  If you want I can get this guy in Sicily

Scott Mac · Answer

A parole office (with bullet proof glass).

A big three sided bill board.

Ronald Rohde · Answer

why did you contract for it at $39k without knowing what you'd do with it? Land is always tough, its negative cash flow and low liquidity.

I'd look at industrial type uses, thats far more in demand than building something right now

John M. · Answer

Your best bet is to hire a site engineer to see what your options are.  They can draft for you what the local county requirements are for building.    My best gut reactions is maybe a tiny drive thru coffee/ice cream shop.  Worst case maybe a trailer/food truck pop up in addition to the seasonal businesses that Henry mentioned.

Henry Clark · Answer

At .32 acres you will need to find out the setbacks and parking requirements.  This will dictate buildable space.

Totally depends on your location.  Annual fireworks location for $5,000 to $15,000, food truck parking for $300 per day, parking for the next door mechanic, rent to vegetable or Xmas tree or pumpkin stand annually.

Could build and rent or sell building but more exposure out of your wheelhouse.

What to do with Commercial Lot

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