Investing in future eminent domain area?
I have just learned through a conversation with city hall that a portion of my target neighborhood is going to be involved in an eminent domain buyout at some point and it will be rezoned as light industrial. They cannot pin down a time. It could be next year, it could be 10 years out. The area is low income with average sale values at around 50k.
I am looking to make my first purchase and there is a 2/1/5 valued at around 60-65k that I can buy at $52k that is currently rented Section 8 that will cash flow around $125 right off the bat. I don't have much working capital and my initial thought for this property was to hold and rent it until the market looked better. This property is in the buyout area.
Thoughts? Experiences?
Thanks.