Inherited lots on Cedar Creek Lake

[Zachary H.]

Hello BP-ers, 

My in-laws currently own 4 lots about 1/4 acre each in Tool, TX on Cedar Creek Lake (not on the lake, but walking distance to the lake). The area is called Paradise Bay. 

The lots mean very little to them and they have just been sitting, paying taxes and mowing fees for the last 20-30 years. The area is not high value or anything to write home about, however, they are willing to gift them to us if we want them. 

We do all of our business in central Arkansas, but currently we live in Dallas/Ft. Worth area (approx. 1.5 hours from Cedar Creek Lake). So, doing something with these properties wouldn't be too difficult. I believe the area they are in now has a 1500 sq. foot minimum to build on. The houses around are generally occupied by local residents and are worth a varying range of $60k-$300k (houses on the lake are obviously the higher end)

Our options are:

#1. Take the gift of some/all lots and build long-term or short-term rentals (bearing in mind that we have only experience in long-term...zero experience in short-term rentals)

-  We would have to have some sort of partner with this deal since we have no cash to build 

- There are not a ton of rentals in the area, so I'm not currently sure of how much a long-term could even rent for. I've seen some 3/2 SFH's approx 1,400 sqft renting for $925-$1,000/month.

#2. Take the gift of some/all lots and build houses to turn around and sell

#3. Take the gift of some/all lots, leave them the way they are, and resell them

#4. Turn down the gift

#5. Another option that I haven't thought about...yet

So guys/gals... if you were in our position with very little cash, what would you do? 

Thanks!!!

Zac