Vacant land for $300 but with high tax balance... Is this a deal?

[Matt Snow]

Hi everyone!

I have been following @sethwilliams strategy for buying and selling vacant land for the last 6 months, and have come across the first "truly motivated"seller. I have a signed purchase agreement for $300. The downside is a high delinquent tax balance and a steeply sloped property. Since this is my very first real estate transaction ever, I am a bit hesitant to commit to this.

Here are the specifics:

Lot Size: .5 acres

Location: Groveland, CA, close to highway, (30 min to Yosemite National Park) 

Purchase Price: $300

Delinquent tax balance: $1,978

Title + Closing Fees: Approx: $1,200

Assessed Value: $9,042

Conservative guess on actual market value: $3,000-6,000

My main concern: Approx. 80% of the land is in a steep wooded ravine

Is this worth pursuing? Any thoughts on this would be much appreciated!

Thanks,

Matt

[Ned Carey]

@Matt Snow You say the property is worth $3-6000. 

You ask about the steep ravine. If you want the land, do you want a steep ravine? 

If you are going to resell the property is absolutely does not matter. The only thing that matters is the value. 

Could the ravine affect the value absolutely. However you started with the premise that it is worth 3-6K. If you don't really know what it is worth then the ravine may make it worthless. Land is valued based on what you can do with it. You can't do much with One Half acre other than build on it. Is it a buildable lot? Would there be demand for a  home there if it is buildable?