vacant lot beside your rental property goes for sale. would you buy it?

[Shaune Hassell]

Its a vacant lot beside my investment property  , up for auction  not sure if i should invest in the land ,cause i don't think it will increase the value of my investment property .City is offering me first stabs at it......... if i want it ,...........It's probably for tax purposes.  Would you do it?   

[Roy N.]

Is the lot of sufficient size to develop? What kind of property will zoning allow you to place on the lot (SFR, duplex, 6-unit, 12+-units, etc)? It may be worth your while to acquire it and later building another rental.

What is the demand for infill lots in the neighbourhood ... you could always exercise your first rights and then roll it over to a developer in a few months.