Is my first potential deal built on future speculation???

[Ashley Wolfe]

The potential deal:

3/1.5/2 1947 SFH on 1.5 acres within 1/2 mile from the lake. Asking $74,900.

Its on a rough looking street with dilapidated mobile homes and other old houses.  The street its on is surrounded by homes that sell for $300K-$800K whether they are new construction or homes built in the 80s that have acreage.

There is a land tenant paying $400/month for use of the shed for his landscaping business.  My agent said we would be able to rent it out for $800-$900/month.  Its in an area with really good schools and low crime.

The realtor I'm working with said that the list price is basically the total ARV because the value is in the land. We put in an offer of $73,800 and the seller is "seriously considering" our offer according to my agent. A different agent I've talked to has said that this is a "good deal." There are multiple offers on the house and we'll know by this Friday who the seller is willing to give a contract to.

Because of the area being surrounded by huge mansions, we are speculating that, in the years to come, this land will be worth quite a lot and we can sell after renting out the house for 10-15 years.  We may even be able to subdivide the land into two or three lots because the lots for the mansions aren't very big.

The house needs about $10-15K worth of work to get a renter in it.  It oddly enough already has new granite Ctops and kitchen cabinets.

I'd like you to weigh in on if this sounds like a good deal to you.  It would be our first deal and we're getting nervous that we'd be basically hoping for a return on our investment since there is no real value in the home itself.

Thank you!