Developing 2 small lots in Covington

6 Replies

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $9,000

I have purchased 2 vacant lots in Covington and have started the process of development. These will be Buy and Hold projects. I am looking into alternative housing options such as Shipping Container Homes. This type of structure will be new to the area, so I anticipate various hurdles along the way.

What made you interested in investing in this type of deal?

Lack of low income housing in our area.

How did you find this deal and how did you negotiate it?

I have a Real Estate business. It was posted on our MLS and negotiated it with the seller's agent. The seller is an investor who had recently purchase 89 deeds in the area. Some of them he sells off, others he flips, some he holds.

How did you finance this deal?

Cash deal

How did you add value to the deal?

I am building a SF on each lot. Because the home values in the area are around $100K, I will need to be a bit creative with my budget.

Due to zoning restrictions, I am unable to put a mobile home on the lots. I have looked into Tiny Homes, and that is still an option. I am doing a cost comparison on both Tiny Home Builds and Shipping Containers. 

I looked into both Shipping Container options and a pre-fab Tiny Home option. I have decided to go regular stick built. I have teamed up with a builder friend to help with financing as well as building. He has made it more affordable than the other 2 options. The homes are still a small footprint and plan to be completed within the next 3 months. Check out https://www.mightysmallhomes.com/. This who I would have gone with if I had not teamed up with a builder friend.

Thanks Rachelle,

I'm not familiar with Mighty Small Home so I will check them out.  Thanks for the referral!  Can't wait to see the finished project.  I'll let you know if I decide to try it.  

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you