Last year I purchased a piece of land which came with building plans for a duplex. The seller was getting ready to build, building plans & permit were approved, but due to health reasons the project never started.
Needless to say I got a great deal. So my plan is to build the duplex and rent them out, I've been saving for down payment and planning to build sometime next year. I'm estimating construction costs to be around ~$300k.
Then I found out that the duplex right next to my land is for sale....it is an investment property and tenant occupied.
At first I didn't care for it since my plan was to build..but I couldn't stop thinking about it, so I'm going to check it out this week and most likely put an offer. Asking is around ~$230K.
What does BP think? Build or Buy?? I'm leaning towards buying since its "ready-to-go"...tenants already in there and if the price and my calculations are correct I should see around ~$700 cash flow.
Thanks Alex
