Buy vacant lot or pass?

[Alecia Loveless]

I’m about to free up some capital to invest from a property I’m selling. I live in a small resort town with several restaurants, bed and breakfasts, two golf courses, and very close to skiing.

My question is this. There is a vacant lot adjacent to a duplex I own and a small quaint strip shopping plaza, which has five stores including one of the towns most popular restaurants. It is owned by a nonprofit that I bought my duplex from because they almost went bankrupt and I suspect they are still financially unstable a year later.

I believe I could buy the lot for future development for about $35-40,000 and taxes each year would be approximately $900. I would also have to keep it insured for a nominal amount, probably $500 a year.

The lot could hold a SFH , a duplex or a small commercial building.

Does anyone think this would be a good investment or that I should save my money for a purchase with existing income now such as a SFH or another duplex?

Thanks!

Alecia Loveless