Second Deal Opportunity

2 Replies

Hello, I am almost done with my first BRRRR, and I have the opportunity for a second deal. There is a plot of land with a falling down house and garage a quarter mile down the street from me, FRBO for $3,000. Most land only plots in my area go for between $12,000 - 18,000 at minimum, but I'd have to tear down the house and basically start from scratch. Thinking of putting a stick built duplex or a conjoined doublewide on the property to rent out. Anyone have any advice about new builds for rent for a beginner? I'm pretty much in the dark about new builds, as I've never worked on one before. Thanks!

My first concern would be the demo and disposal of the existing structures. With age, the structures may contain lead based paint and/or asbestos.  Local regulations vary. I would dig around the local municipality for previous usage of the land and the costs to dispose of the existing home. 

Good luck

Your first step is going to be to go to your local Building/Planning Departments and determine what the zoning and approved uses for the land is. Once you know what is allowed on the property, you can weigh your options for build cost and ROI. Don't buy the land without checking with the town first.