How can we make this a great deal?

[Nicholas Vermeulen]

Hello everyone,

Me and my fiance have a opportunity to purchase the property next door to use for a measly $2,000 here in Sandusky MI. He's the deal the house is falling apart due to a bad roof needs to be torn down, it is twice as big as our place land wise. We are planning on moving and selling our house which is older and in need of alot of updating. I feel like it is a great deal and could possibly add to selling our house we are just nervous of being stuck with it and it being a money pit rather then a profitable deal. The property according to the owner was last assessment was valued at $16,000 I looked at the state value and it is currently $12,000 based off just that alone. We were thinking our best option would be to sell on land contract both ad a deal or the house on contract and sell the land next door straight up to someone but to who? Who needs to take the house down. And input would be greatly appreciated Thanks.

[Andrew Johnson]

Nicholas Vermeulen One thing I’d encourage you to do is to “play developer” in your mind. I’ll just make up some numbers...

If sold properties go for $100K and the cost to build is $100/sq ft and it’s a 1,000 sq ft home you know where you stand. Then you had to add in the cost of the land, cost to scrape the tear down, holding costs, etc.

There are plenty of parcels of land that make sense to develop and a ton that make no sense (economically) to build on. You’ll know the details of this particular parcel way better than me!