Alexey, 28 in Houston Texas
2 Replies
Alexey Sharf
New to Real Estate from Argyle, TX
posted over 3 years ago
Jim Cummings
Residential Real Estate Broker from College Station, Texas
replied over 3 years ago
@Alexy Sharf. Sounds like a good plan - but more difficult to make happen. From 28 Years as an Agent / Broker (All In Texas) my experience is most new subdivisions are created by a Developer that subdivides the land into lots, puts in the roads & utilities.
Developer then sells the lots to Builders in bulk. With a 100 Lot Subdivision, Developer will typically sell 30-40 lots to Builder A, and 30-40 lots to Builder B, and once builders determine the demand in a subdivision, they will buy up the remaining lots. Point being - Developer is NOT interested in Selling Individual lots or to individuals.
With that scenario in mind, you end finding individual parcels of ground to purchase, and if we are looking at "Up & Coming" areas, that probably means buying tear-downs for lot value - which usually means big bucks.
Buying & Holding Land for future use & Appreciation is a "Speculative" play. Vacant Land does not create Cash Flow - holding land is primarily an expense (Taxes, Land & Lawn Maintenance).
IMO, you would be better served by Buying a MFR (2-3-4plex), living in one unit and renting the others all the while accumulating a pile of cash.
Bryan Pham
Rental Property Investor from Oakland, CA
replied over 3 years ago
Welcome to BP @Alexey Sharf !
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