Investor · Collierville, TN · Member since 2016 · 3 posts · 2 votes
Trying to get some input from some of you with more experience. We live in a small but quickly growing town near Memphis TN. We found a property for sale right next to prime real estate in the quaint down town area that is exploding with growth right now. The property is .5 acre with literally a shot gun shack on it. It is for sale for the appraised property value. There are month to month tenants in the house. We are interested much more in the lands future value than anything else. What do you all think?
@Julie Cook, probably, it largely depends on how accurate the "appraised property value" is. If YOU reckon the land should ALREADY be valued significantly higher, then, how confident are you in YOUR appraisal?
And what would YOUR plans be for the land? Are you an experienced developer? Do you have knowledge that the Seller's Agent doesn't already have? If it's as good as you suggest, you'll likely face stiff competition. My 2c.
Thanks for your response and insight. As far as the property value, as of now the appraisal is most likely pretty accurate, however with the future development plans that the city has we feel that the within the next 5 years the value is going to drastically increase. We have zero experience on developing and at this point with the 3 neighboring structures, building something nice would not make sense. This is definitely of interest for its future value. Our interests are more to hold onto it for that purpose. The monthly mortgage is estimated around $170.00. So even with no renters it would not be a huge loss. The seller wants a cash deal and is not represented by a realtor. I am however a little leary that there may be something more to this deal that he has not disclosed so we are doing our due diligence to make sure we cover our selves 360 degrees!