Is this too good to be true?

Is this too good to be true?

Memphis, TN · Member since 2015 · 27 posts · 9 votes
I found a vacant lot in west Tennessee for a screaming deal (I believe). It's almost free it's so cheap. The lot is fairly small and the previous owner was in the real estate game for a while and this is some of the last stuff he is tired of dealing with. There was a small house on the lot at one time but the renters were cooking meth so after much fighting with the courts they ended up tearing down the house. The owner would take care of any back taxes owed after a lawyer did a title search and what not if they found any issues he said he would pay them. There are no utility leins because when they tore down the house they cut the lines at the road so it would have to be reran if built on. End goal would be just flip the lot or put a mobile home on it and seller finance it and collect lot rent. It's zoned residential so according to the county I believe I can put one there. Where I'm confused is that the tax assessor web site lists the lot as "deed acreage:0, calculated acreage:0, land units:1 The home is listed on the assessor website as in a subdivision so I'm thinking that might be why? Is this too good to be true or should I pounce?
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Ooltewah, TN · Member since 2015 · 55 posts · 10 votes
10y

talk to your land development or city zoning permits office make sure you are able to place a trailer/build a house. if it has restrictions of any kind they will not give out permits. Also find out if this is on city water and sewer system. Drive around and find anyone building in the area, stop and ask if they need more building lots and how much they would give for one describe your lot dont give address if it still seems like a good deal and builders will pay more then you can buy buy it for then go for it! If it is a lot where trailers are permissible you could run a test Craig's list add check the demand over one week. Wish you great luck with your lot.

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  • Real Estate Broker · Chicago, IL · Member since 2015 · 531 posts · 266 votes
    10y

    If you aren't afraid of the soil or groundwater being contaminated from chemicals that were spilled or dumped onto the land, or disposed of in a septic system, then it sounds like the deal of the century. 

  • Ooltewah, TN · Member since 2015 · 55 posts · 10 votes
    10y

    talk to your land development or city zoning permits office make sure you are able to place a trailer/build a house. if it has restrictions of any kind they will not give out permits. Also find out if this is on city water and sewer system. Drive around and find anyone building in the area, stop and ask if they need more building lots and how much they would give for one describe your lot dont give address if it still seems like a good deal and builders will pay more then you can buy buy it for then go for it! If it is a lot where trailers are permissible you could run a test Craig's list add check the demand over one week. Wish you great luck with your lot.

  • Investor · Roanoke, VA · Member since 2012 · 1k+ posts · 374 votes
    10y

    @James Little go talk to city to see what you can do with lot,if city oks everything then go find a builder like @Edwin Fisher said,then sell him the lot or just put mobile on it and cash flow like crazy 

    Good luck

  • Memphis, TN · Member since 2015 · 27 posts · 9 votes
    10y
    The property is so cheap that I could sit on it for a while and I really don't even care. It's gonna cost significantly more to get a lawyer to write the warranty deed than it will to buy the place. The main goal since I can sit on it is to seek out a motivated mobile home owner in the area and buy their place and move it on there and try and seller finance it and collect lot rent. There is city water and sewer also. Could there be an issue of the shear lot size to where it couldn't be built on anymore or for a mobile to be placed on it dude to law changes? County planner should know so I'll call them on Monday. The homes next to it are narrow but really deep so that kinda worries me a little bit.
  • Investor · San Antonio, TX · Member since 2013 · 206 posts · 71 votes
    10y

    you could just owner finance the land and not worry about the cost if buying, transporting, and being responsible for utilities and infrastructure. Go to a local mobile home dealer and tell them you have a lot for sale and your want to owner finance the land. The dealer should find a customer for you quickly. They sell them the mobile home and you have them sell your land. May want to give them a little comission, or just post the lot for sale on craigslist.

  • Ooltewah, TN · Member since 2015 · 55 posts · 10 votes
    10y

    Your city land development office can answer most of these questions many lots in the city limits will not allow mobile homes. If the street dose not already have mobile homes on it is likely not allowed (although still worth checking), Bigger lots out in the country on septic are much more likely not have restrictions against mobile homes. Don't get me wrong if a mobile home is allowed and you have both city water and sewer, as well as a reasonable flat lot. As both @Mark Brogan and @Rich Ferradino suggested take a down payment for what you have in it. If you owner finance the rest you created no cost and hassle free steam of cash flow for the term of the loan. Now that is sweet!

  • Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
    10y

    @James Littlecongrats on the seemingly good deal! How did you find it? Looking forward to hearing what you end up doing with it and how those city conversations go. 

  • Memphis, TN · Member since 2015 · 27 posts · 9 votes
    10y
    It's looking good so far! Talked to city and It is zoned to allow a double wide on a permanent foundation! All the restrictions on the neighborhood are good to go! Going to talk to the lawyer Tomorrow to get the title check done and warranty deed set up if everything checks out ok with the title. Talked to the owner and he is "calling it" in escrow incase anyone else is interested. Hopefully be closing with in the next week and I will release more details to the BP community!
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