Houston, TX land lots and new construction investing

[Jeromy Jordan]

Hello BP!

Does anyone have any tips/steps to take with buying land and building properties to sale or hold as rentals?  Anyone have any experience with going through the process that is willing to share their experience on the risk/rewards of this type of investing.  I have friends of the family that brought me some off market land lots they are willing to sell me. I've never done this type of investing and unsure of how to seize this opportunity and take down these deals. I know the location is primed for building and their has to be profit to be made with it because there are other investors in the area building new construction properties all around the lots that I am looking at. 

I'm having trouble with analyzing the deal and deciding what a good offer price should be for the lots.  I'm trying to reverse engineer the process and back into my numbers. 

Should I start with finding an architect first, or perhaps a homebuilder? Do I just get it under contract first then go from there. 

It's a 10,000sqft lot in Houston, TX. Seller is asking for 100K.  I believe I can fit at least 3 houses on the lot. New construction homes all around it ranging from 1600sqft sold for 280K to 2000sqft homes sold for 400K. Also an investor is currently building 6 homes on an adjacent lot to the lot I'm interested in. The other seller which is a family member has 2 lots about 6,000sqft total they are willing to sell me. 

If anyone has any experience, advice, and recommendations with this type of investing I would really appreciate it. Thanks!