Tearing down an old house for land value? (Lafayette, Baton Rouge, LA)

[Nick Deshotels]

Guys,

I'm thinking a little out the box on this one. I have an old wood house on piers near my home that is slowly wilting away. It looks to my beginner eye that it is passed any point of return. It's just falling apart basically. Is it feasible to buy the property at a real low price, and put in the sweat equity to complete the tearing down of the home in order to gain the land value? Just curious to what thoughts are out there. 

Thanks

[Michaela G.]

What is the land value? Depending on the area, it's 25%-30% of retail new construction sales price. 

So, if you can get it at a great price, why not? You can donate to the fire dept for practice and then you'll only have to carry off the debris. 

Or you can drive around and find out what builders are paying in your neighborhood, put a list together of potential builder/buyers and when you have the property under contract, get everyone's email/fax address and shoot out a sale flyer for the property.

Most builders have access to the type of demolition equipment that's necessary and can do the tear down much cheaper than you could.

It all depends on potential market value of the lot.