Future Home Building Investment: Seeking Advice on Land Purchase in WA State

[Saurabh Patel]

Hello BP,

I hope this message finds you all well. I'm seeking some advice on a potential real estate investment opportunity, and I'd greatly appreciate your insights.

In about 5-6 years, my family and I are planning to relocate to Washington state, specifically in the Bothell/Kirkland/Bellevue area or slightly north of Bothell. We're considering the option of purchasing a parcel of land or a larger lot with the intention of potentially subdividing it for resale and constructing our own home.

For instance, we're contemplating acquiring a one-acre plot and exploring the possibilities of division in the future. I'm curious to hear your thoughts on this concept and whether it might be a sound investment strategy.

Any advice, considerations, or experiences you can share would be immensely valuable to us.

Thank you in advance for your time, guidance and expertise!

[Sherief Elbassuoni]

It depends on budget and your experience.

If this is your first development project, it may be too big of a project as a first one. 

You can probably buy a single family and build a Detached accessory dwelling unit (DADU) in backyard.

If you have experience and can finance 30–40% of project through a construction loan, you can go big as long as zoning allows, and numbers make sense