Buying a lot of land to hold as collateral

[Dustin Oaks]

I need some help from the more experienced investors on here and pointers.

I am currently looking for investment property, more specifically right now undeveloped land. My main areas hae been the Bahamas and the Virgin Islands.My goal is to pay cash outright and own the lot free and clear minus the taxes and such for the lot and use the lots as collateral to purchase a home to renovate and use as rental income. The lots I have looked at range from 10,000 sq ft to 20,000 sq ft. I have been doing development analysis on how well the development of the areas are going and the prices for homes once the land is developed. Homes close to the water in the bahamas start off around 500,000 and up. Depending on the size of the house of course.

My question is:

Is this a good approach to starting out?

Thanks

Dustin