How are investors evaluating small infill lots right now?

How are investors evaluating small infill lots right now?

Member since 2021 · 95 posts · 23 votes

I’ve been looking more closely at smaller infill lots in Metro Atlanta lately, especially ones that aren’t perfectly shaped or are a bit tight on space.Curious how other investors are approaching these right now, are you still building on these types of lots, holding them, or passing altogether?I'd love to hear how you’re evaluating deals like this in the current market

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  • Jay TolugantiPro Member
    Investor · Clearwater, FL · Member since 2025 · 227 posts · 80 votes
    7mo

    Usually setbacks determine what city/county allows. In my experience, new investors endup buying the odd shaped lots or rare lots (no easement) in tax sales without proper due deligence.  So, my opinion, not much one can do with them, other than helping county get their property taxes. 

  • Member since 2021 · 95 posts · 23 votes
    7mo

    That’s helpful, especially the point about setbacks and due diligence. Makes sense how tricky those lots can get.

    Are you mainly seeing these through tax sales, or do you still find deals that make sense through more traditional channels?

  • Developer · Cleveland / Akron, OH · Member since 2008 · 922 posts · 399 votes
    5mo

    Some lots aren't a deal if they are free. If there is a small lot that cannot be reasonably built upon due to setbacks, we can go through the planning process and then go through a zoning appeal to reduce the setbacks, but we don't want to own the dirt before taking that chance, especially if we aren't talking about a minor reduction. Depending on the desirability of the area, sometimes it is easier to put up something small enough to fit without variances, but you are then tying up management time and capital on a project with a capped upside potential.

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