Vacant Lot construction ideas!

[Account Closed]

Hi, first time on the forums here and i've only ever made 1 real estate purchase. Four years ago I bought a double lot 100 x 100 in St. Petersburg FL (tampa bay area) for 40 k, cash. Now market research shows I can sell it for 115k. I would like some advise from investors of what my next steps should be. Here are my ideas.

1. Sell the lot - quick easy money ~60k profit after taxes

2. Build a single family home to sell ~100k profit. Downside here is getting a construction loan if I dont intend to keep the house.

3. Build a single family home to rent out ~long term investment no immediate profit

4. Split the lot in 2 - build two smaller homes and either sell both - sell 1 and rent 1 out - or rent both out. Construction loans to build 2 houses now get hairier. 

Any other ideas? Anything I'm missing? I going through a large learning curve here and information can help.

Thanks!

[Naveen Desai]

@Account Closed, 

     You might want to first look at the zoning of the lot.  

     Is it residential  or commercial. I dont see that info in your posting. That will determine what you can do best on the Lot. 

1. If it is a commercial lot, your asking price to sell may be more - sell, pocket money ( give me some for the idea :) and clear). 

2. If it is a residential - is it only SFR or duplex or multi ?

3. Can it be mixed use.  Residential units on top, Office condo's in the ground floor. 

4. If you can do multi-

    a. Get a GC company to estimate, build townhomes/condo's and sell each ( or keep to rent).  Get funding. Mind that keeping it for rent also means, you have to keep the loan. [ not an option I would go with]

    b. Partner with a builder to construct and agree on terms. Like if you build 12 units, 8 ca be sold and builder should give you 4 - something like that.  So it is Your Lot, their construction cost.

c. Build condos and sell the units, but you become the property management company and run the HOA :P --- sweet deal if you can also have strong Attorney/tax pro/Accountant on admin staff on your team.

============================

The list can go on  with ideas, but boils down to execution. 

Either case, first thing will be to talk to City/County and see what they will let you do on the lot.  Then get an architect/GC and ask for the plans, while simultaneously look for funding. Add an attorney/accountant on your team.

Disclaimer: All the above points are only ideas and use it at your own discretion.

Good luck!

Thanks, 

Naveen.