Buying & developing land

[Hank Parater]

I have an opportunity to buy some commercially zoned land -actually the legal definition is called "Village center commercial". You can basically build small commercial buildings (ie: ice cream shop, coffee shop, etc- no high rise) But you can also build a duplex, triplex, or just a single family. The location is in a decent town, and the lot is flat and pretty much ready to be developed. It's about an acre, and priced at about 50k. Has city sewage/ well already drilled for water supply.

I was thinking either build a duplex or just a single family, and I think the sf would sell for more. Maybe just a 1500-2000 s/f house. Basic starter home- would comp for $250 or so.

I am a contractor, so I can hire a builder to do foundation, and then me and my guys go in and frame and finish it. Thinking it might cost me 100k or so.

50k land, 100k build-- sell @ 250k - 100k profit- 8-12 months

Anyone have any experience with this??