Opportunity in small older homes on large well-located plots?

[Jason Liss]

I am a new not-yet investor.  Primarily interested in multifamily investment property, but I live in a rapidly growing area with a currently booming market (Triangle, NC).

In many of the currently growing/developing areas, there are small, run-down old homes on plots ranging from 0.5 to 5 acres.  They are commonly located in a row, right near large new subdivisions with homes selling for $300K-500K.  These small homes, if for sale at all, are generally around 100K, but often they are not listed as being on the market.

Seems like a sure thing that at some point these smaller homes will not be there and the collective land will be developed.

Is there opportunity in homes/plots like these?

[Dawn Brenengen]

@Jason Liss  You might be able to do something with a 5 acre plot, but for the smaller .5 acre lots, I would only buy those if there were next to booming areas that are not next to new subdivisions.  People want to live IN the new subdivisions, not next to them.  However, the areas closest to downtown where there are lots of renovations happening would make great candidates for those kinds of plots of land.  If you could buy a half acre close to downtown Raleigh, you could theoretically subdivide it into three lots and build three homes.