Need advice on a 200 acre development opportunity

[Dan K.]

Need to verify specifics but was just told about this pocket listing & here's what I know so far:

For Sale 200 acre development for only $250K; has 130 lots (~20 lots are already developed with houses); lot size is from 0.75-1.5 acres; in Phase I of development (roads for about 40 homes are graded & graveled with electrical buried), rest of land has not been touched; owner is currently selling individual  lots from $15K - $25K (generally more expensive lots have a well & septic, cheaper lots don't); manufactured or stick-built homes allowed; restrictive covenants attached (waiting for document).

Location is in a rural area in the SW; local economy is based on transportation, agriculture, energy, retirement & tourism; 3 miles from a major interstate highway; on a major shortcut between 2 interstate highways; 10 mile radius population is ~ 20K; closest city with over 100K is only 1 hour away; cost of living & living expenses are definitely on the low end, great for retirees and the cheaper than average labor.

Quick overview & simple math tells me that only selling 90% of the lots at the low end of $15K is just about $1.5 million. Even if it takes 15 years to sell those lots that's $100K/year. Obviously there are some additional costs involved but all I see right now for future expenses is running electricity and grading & graveling the roads for the rest of the development. Besides insurance & property taxes are there any other expenses I should be aware of?

I believe that grading & graveling the roads will be the largest expenses. Anyone want to ballpark or guesstimate those expenses?

Have never looked into anything like this before so am interested from anyone that has been involved in a similar deal, so I know what questions I need to get answers for, what I should expect, and how & what to calculate to evaluate this type of deal. Heck, is it even a good deal.

Thanks in advance.