First land deal sitting for a year sitting on the second R

First land deal sitting for a year sitting on the second R

Specialist · Huntsville, AL · Member since 2020 · 200 posts · 105 votes

I acquired my first land deal, had two lots. One with electrical transmission overhead line running over it. Thought it was enough space for a small short term rental far enough from the line, few miles to a college. But I didn't do any of the rehab. No driveway, no culvert, no meters, bare land that need some cleaning up, some timber, tried selling half the land. I guess I am answering my own question, but this was a stretch of time, that I didn't measure correctly and cash that wasn't available, which should have been measured too. I tried selling half of the 2 lots and keep one for small short term rental near the college, but it didn't sell. Which in my mind would have given me the cash to build the short term specialty rental, or short term rv parking, or like a tree house rental. The most up to date, is to sell both lots, .6 acre, and find another property within an hour of me to do my own rehabbing, clearing and grading.  Any feedback welcomed. 

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  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    3y

    1.  Homework.   Per lot what are your setbacks?  How much buildable land is there?  A square or rectangular structure.  

    2.  Sewer and water.  If this is in the country can you build under the power lines?

    3.  Sell the land and move on

    4.  If in a good location put parking and cargo container storage under the powerline.


    5.  Read up on land development before your next investment.  

  • Alicia ProkosPro Member
    Developer · Powell, OH · Member since 2016 · 59 posts · 44 votes
    3y

    I'm not sure I understand. Are you saying you had plans to clean up the land and put a short term rental on it, but never went forward with the plans, either because due to regulation or lack of money you couldn't? Then you tried to sell one of the lots so you would have the money to execute plans on the other, but it didn't sell?

    Now you are asking whether to keep trying to sell both lots in order to find another property, is that right?

    I would say before you do anything, evaluate your development or exit options thoroughly with the property you have, taking into consideration county planning & zoning rules, your budget, resources, your own skill set,timeframe, what you can do under powerlines, etc. Then pick the best option. If the best option is to just cut price and sell, and then you end up buying a new property, make sure you do all this research upfront before actually purchasing anything else, in order to make sure you can execute upon your chosen strategy and avoid having to sit on property again. Hope that helps.

  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    I'd sell the land and move on to an asset that is way easier to develop/reposition, leverage (finance), and cash flow.  

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