Cheap property with broken house vs vacant land

3 Replies

If everything else would be similar situation,

Listing price values building pretty much nothing,

Would you rather invested in the property with this broken house needs full gut or maybe tear down vs the vacant land. I am asking cuz, even if the house needs tons of work, still have permit, water, septic system, electric is in place. Wonder that adds more value for me to consider than Vacant lot.

Thank you for your insights!

@Jenna Walker   It depends on what your goal is and the layout/size of the home.  If the size of the home works for what you need and the bones are solid (ie foundation and outside), get the broken house.  If the place will literally have to be torn down, it is a toss up.  Taking the sewer from the street to the lot will cost, but with vacant land you can do whatever you want.

One of the places I bought needed about $30K of work (outside of a new heat pump and septic that was done before closing).  Based on the assessment, that was about 40% of what the house itself (not the land) was assessed at.  It is a long term rental and was a good way to get a great lot.  I will probably tear down the house in another 10 years and build my retirement home on the lot.