Buying rental home with extra deeded lot
Has anyone had success buying a house with an extra buildable lot? No subdivision would be required to build a single family home on the lot, special use approval needed for a duplex which would face neighbor opposition. I am considering an offer on such a deal. I suspect I will need to pay retail for the home which will cash flow only $50/month and is turn key. The lot is worth about what my 20 percent down payment would be, so I would end up with the house for "free" if all goes well.
Thoughts?
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@Brian Rosher Do vacant lots sell in your area? It's only worth 20% if you can actually get it. There are plenty of places in the U.S. with vacant in-fill lots that just sit idle (for whatever reason). Sometimes the cost-to-build in a particular neighborhood just doesn't pencil out. The good news is that it won't cost you much in property taxes each year but you will have to maintain it so there is some (small) expense there. If you've done your diligence and lots are actually selling at your estimate then go for it.