Hold or do something?

Question

We purchased 40 acres lot that is very closed to a lake in Idaho.  We wanted to build a cabin for us but learned there is nothing and off grid so it has been sitting there for last three years and paying the property tax. We've been hearing eventually that area will be developed but don't know when. The place has been appreciated 70 K last three years. If you were us, what would you do? Build camp grounds or something, or just let it sit for the appreciation?  Any advise please.

Tomoko Hale · Answer

Thank you for your reply. Our property is situated in the mountains, approximately 100-150 feet from the waterline, and I can see the lake(State Park) from the property. There are ski resorts close to our property, and the lake is a very popular destination for families and friends to visit during the summer and fall. There are caves, a golf course, hiking trails, and a state park nearby. It has the least flood risk.
I haven't had an appraisal done, but the property tax we pay keeps increasing based on the estimated property value. Perhaps this isn't the best way to measure the value of the property.

I will keep your advice in mind and continue to think about whether there's a way to utilize the land or if it's best to leave it as it is for now. Thank you.

Tomoko Hale · Answer

Thank you Molly. I'm in SLC, UT so a bit far away. Dang!

I've been researching on digging well, electricity cost so I will dig more info. It is zoned as a farm land as of now. I didn't even think about calling the county. Thank you for letting me know that.

I will look for a local meet up as well so at least I have a place to learn.

Thank you

Molly Arnott · Answer

It can't hurt to start looking into the costs of what you'd need to develop the land. If power is unavailable, what would a solar setup cost? Could you dig a well and install septic systems? Are you zoned to be able to put a campground in? If not, how challenging is it to obtain a special use permit? Call the county you're located in and have a chat with them about how you could use the property. Being near a lake is killer especially if you're within a couple hours of a metro in Idaho. I love the idea of campgrounds or a tiny home village, but they'll require some capital to develop into it.

are you attending any local investor meet-ups? If you're anywhere near Boise I host one monthly and we'd love to meet you! We love to sit around and talk about how to best optimize a properties we own, etc. It would be a great place to mastermind something like this. Reach out if you want details for tonight's meetup. (Boiserein.com/events )Otherwise look in your local area to see if you can find one :)

Jaron Walling · Answer

It's a land investment. Access to utilities like water, electric, sewer, and internet plays a HUGE role in which strategy to choose. A lot of investor just sit on land because nothing is available or it's just too expensive to get at that time. In my state you can buy beautiful forested lots of land but some have no access to water. No water, no house, no campground. No cheap strategy to explore without spending thousands on a cistern tank, deep water well, or trucking water to the property yearly. What's the topography look like? Any flood plane hazards to deal with? Can't build any structures in a flood plane. These are few road blocks to consider.

Did you get an appraisal? How do you know it's actually gone up $70k?

Campgrounds are great but remember people want and need something to do. It's a destination and adventure. Is there hiking, waterfalls, ORV trails, or a national park nearby? I'd think about the proximity to these activities before spending any money.