Use of multi-family zoned vacant land

[Daniel Burdi]

I recently invested in multi-family property. There are three lots total, all zoned multi-family. Two of the three lots have buildings on them with several units that are all rented. The other lot is completely vacant. Does anyone have any ideas on how this land could be used to generate income.

The property is about three blocks from the beach.

One idea I had thought of was an RV park (only room for about three or four spots) but that would still generate pretty good income. However, it sounds like there might be ordinances preventing this. That said, any other ideas?

[John Becker]

You say, "invested in multi-family property." Not sure what that means but assuming you mean you bought the vacant lot then you need to be thinking what is the highest and best use for that property. Three blocks from the beach I doubt self-storage or mobile homes is the right answer. 

And right next door you say there are already two income producing multi-family properties. Why not a third?

Go to your local REIC or somehow find a local builder or developer and partner with them. You contribute the property and they build the building. Then get permanent financing based on the equity in the building, pay off the construction loan, buy out the developer and have a cash flowing, appreciating investment forever - 3 blocks from the beach.

Of course you need to make sure all the numbers work but I own a building one block from the beach on the west coast and I rent apartments for astronomical sums in minutes to great tenants and as for appreciation - again great.