Is investing in undeveloped land a good or bad idea?

[Tyler D.]

I'm a young investor, in my mid 20's. I'm looking at buying real estate in Oregon, which has one of the fastest population growth rates in the US, and great future potential.

I've been scouring the markets, and most of the existing houses are very expensive, and do not cashflow. However, there is an abundance of cheap land. One example I found was 80 acres of beautiful land with a cabin for $225,000.

I'm thinking that, if Oregon continues to grow at its current pace, that land may eventually be worth a lot more than I paid for it. At 3.5k/ acre, it could be worth 100k/ acre or more if it becomes a developed area.

However, this could take decades and the whole time I'd be paying property taxes on the land, without a monthly return.

I think this is a very cool opportunity, but I want to know if it makes financial sense? Have you invested in land and made money off of it? Have you gotten burned? Let me know.