Homeowner · Takoma Park, MD · Member since 2008 · 35 posts · 0 votes
I am looking at three residential properties. They all have one thing in common - they are adjacent to a vacant lot. Any problem with this? These are rowhouses in the center of city, close to commercial areas. For two out of the three properties, it looks as if a rowhouse next door dissappeared, so the house I am thinking of buying has no windows on the side, but the third property does have windows on the side and will affect the amount of light the house will get if something gets built next door. That is all what I can think of as a risk, anything else I should consider? Also, is there a way to mitigate a risk?
General Contractor · Scottsdale, AZ · Member since 2008 · 100 posts · 7 votes
19y
Hi - The way you explain it - nothing. Check into who owns it - then offer them a deal and buy it. Then you control what goes in next door on the vanant lot.
Homeowner · Takoma Park, MD · Member since 2008 · 35 posts · 0 votes
19y
Thanks. I am sure that is the investor psychology the seller is banking on. And I would buy, if buying both the property AND the vacant lot still does not change my investment forecast so much. But the seller is asking the same amount for the vacant lot, so my upfront investment doubles, for the same cashflow...
General Contractor · Scottsdale, AZ · Member since 2008 · 100 posts · 7 votes
19y
If you are afraid of what might go up and can't swing both, maybe you should pass. If you are investing to resell - it may not matter what is next door. Mostlikely, someone will by the vacant lot and build. But if its not YOUR permanent home - I wouldn't worry very much. I purchased the vacant lot next to me because I was planning of living there a long time and didn't want anyone next to me.
Its like anything else, you have a gorgeous sunset out your back window until the guy next door builds his home. You can't stop that and I don't see how it could affect you in any way when selling - just so long as the buyers knows and sees that something may be built next door.
General Contractor · Scottsdale, AZ · Member since 2008 · 100 posts · 7 votes
19y
If that is true - why would anyone even consider the property? even if it was free! - why take on such a cleanup headache? You can pass on deals - sometimes its the best thing to do.
Dayton, OH · Member since 2008 · 517 posts · 17 votes
19y
Originally posted by "BBChoux":
Thanks. I am sure that is the investor psychology the seller is banking on. And I would buy, if buying both the property AND the vacant lot still does not change my investment forecast so much. But the seller is asking the same amount for the vacant lot, so my upfront investment doubles, for the same cashflow...
Something seems very strange when a vacant lot is the same price as a lot with a house on it. :shock: If the house is in terrible condition it might have to be tore down and that's expensive (in which case the lot is actually the better bargain).
Have you inspected the property? Something stinks REAL BAD here. Either a crap property or a seller that has no idea how to price his properties :lol: