Is ivnesting in vacant residential lots a (potentially) good idea?

[Miles Stanley]

hello all!

A friend of mine has had some past success in purchasing vacant lots in subdivisions being built-out, sat on them for a time and sold them to eager buyers later for, apparently, substantial returns.

the lots had utilities and were ready for a house to be built on them, but he just purchased the vacant lot and sold it to someone who wanted very much to build a home on it.

Is this a sound strategy?  How can you know if the vacant lot would be worth so much more than you paid for it to someone else?  Is it just a matter of finding a desirable area and being patient?

This strategy seems a little risky to me with the potential being there to sit on the property and incur the usual monthly expenses while you wait for a buyer to come along.

Has anyone had experience/success with this?

Thanks,