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Updated over 5 years ago,

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Brian Fisher
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Newbie needing advice about rural lake lots

Brian Fisher
Posted

I’m pretty green when it comes to investing which is why i’m needing some guidance.

I recently started looking at investment properties with a realtor, when she had made a comment on some North Dakota rural lake lots she had listed that the developer cut the selling price in half in hopes to propel development. After getting more details and driving out to take a look I was willing to buy one of the three lots selling for $29,900, with cash. My thought was to tap the well and wait a year or so to sell for a little extra cash. But now the developer is offering that if I purchase all three lots for $29,900 each then she will pay for a well system to be drilled and installed for one of the lots which will amount to about $15,000.

Details about these lots. The three lots are in a 14 lot development ranging from $30k-$150k which none have been developed on yet. Two of the lots are side by side, one is 2.16 acres and the other 2 acres. The third lot is 1.98 with a little better view of the lake. Lots are about 200’-300’ away from the biggest body of water in North Dakota, Lake Sakakawea, and walking distance from a boat launch. The lots are off a dirt road 1.5 miles from the two lane highway and 9 miles to the nearest town of Garrison. The town of Garrison has 1,500 people and slowly declining in the past 3 years. Only 10 people within a 1.5 mile radius of the lots live there year round and one house in the area being built by the owner.

There is rural water and Electric hookup near the lots but the district is not allowing new connections due to low pressure in the lines so a well must be drilled.

Talked to the local well driller that told me it’s $36 a foot to drill and he guesses it will be 200-250 ft down to a large aquifer with good pressure and decent water. He thinks it would be around $15,000 to put the whole system into the house for year round living.

What i’m having issues with is, for one, how do I find a comparable if only four lots have sold around the entire lake within a year? None of them having a well. Two, if I should just forget about these lots altogether, buy one with cash and wait a year to sell, finance all three then tap the wells and wait a year, or put a shop condo/barndiminium on them, rent out the living spaces while renting out the shops where others would store their boats and RVs?

Your advice is much appreciated

Thanks,

Brian Fisher

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