Updated about 5 years ago on . Most recent reply
Buying Empty Lot to Build Rental Property
The subject says it all. I am a brand new investor and am looking into getting real estate. As a student, I have time on my hands. Say I find a corner lot going for $150K, 2000 sq. Prices of homes in that area typically goes for $525K.
Would it be a good call to purchase the lot and develop your own rental property?
Would you recommend a duplex, triplex, fourplex? Or more?
I have $80K in the bank. What would the cost of building something like that be? And how would I finance it?
Most Popular Reply
Construction loan to build your primary residence DP can range from 0%-20% there are programs that can also include the land purchase as well. You can also buy the land and in 12 months use the value of the land to reduce the LTV. There are a lot of options you just need to pick what best suits your budget and overall goals. The long run would be to rent the home out or sell it once your ready. Since your in school maybe rent a few rooms to your schoolmates until you find a permanent renter or sell.