Vacant Lot - Build or Sell?
Hello BP,
Our company has a small lot in an improving area of Decatur, GA.
Our current All-In expense is $13,000 (this was a tax lien) and we have an outstanding liability of $11K, which could increase our total all-in expense to $24K (rounding up). There is a chance this $11k liability goes away, which would be great and keep up all-in at $13k.
The houses in this area are renting between $1,000 - $1,400 (two homes listed within a half-mile). I think the rents are more like $1,000. The home sales on this street for 3 / 1 are around $150K, but houses just one street over go for $200k+.
We are buy and hold investors, we just bought this lot because it was so cheap. We also have the capital to build without having to borrow.
We've been offered $35K, which is an easy way to make a quick $11k on the deal, but this isn't our ideal strategy.
Our goal is to BRRRR our way to financial freedom. We have never built a house and our development research says you can built for all sorts of $$ / sqft and we don't have a good contractor that we can trust.
What Would Bigger Pockets Professionals Recommend?
Thanks to in advance all!