@Nick P.
Congratulations on embarking on your real estate investing journey! It's great to see your enthusiasm and eagerness to hit the ground running. House hacking, particularly through a duplex, can be an excellent strategy for new investors.
Considering your work restrictions and personal preferences, it's understandable that you've narrowed down your search to specific cities/areas. However, you've found that the current properties for sale in those areas don't align with your investment criteria. This is a common challenge in real estate, and it's encouraging that you're exploring alternative options.
Vacant land zoned for multi-family development could be a viable choice, but it's essential to approach it with careful consideration. Here are a few factors to ponder before making a decision:
- Feasibility: Assess the feasibility of developing a multi-family property on the vacant land. Look into zoning regulations, permits, and any other legal requirements that may apply. Consult with professionals such as architects, contractors, and local authorities to understand the potential challenges and costs involved.
- Budget and Financing: Determine your budget for purchasing the land and developing the property. Consider whether you have sufficient funds or if you'll need financing. Securing loans for a first-time investor can be challenging, so explore your options and ensure you have a solid financial plan.
- Time and Effort: Developing a multi-family property from vacant land can be time-consuming and demanding. Are you prepared to invest the necessary time and effort into overseeing the project? Consider whether you have the expertise or willingness to manage contractors, navigate construction challenges, and handle any unexpected issues that may arise.
- Risk Tolerance: Assess your risk tolerance as a first-time investor. Developing a property from scratch carries more risks compared to purchasing an existing one. It's important to be realistic about the potential challenges and uncertainties involved, both financially and logistically.
While developing a multi-family property may seem daunting for a first-time investor, it's not necessarily out of reach. With thorough research, proper planning, and a team of professionals to support you, it can be a rewarding venture. However, if you find the project too complex or overwhelming, it may be worth considering alternative strategies, such as exploring other cities/areas with more suitable properties or seeking guidance from experienced investors or real estate mentors.
Remember, real estate investing is a continuous learning process. Engage with online communities, attend local real estate meetups, and network with experienced investors who can provide valuable insights and guidance based on their own experiences.
Best of luck with your decision and future real estate endeavors! Enjoy the learning journey ahead.
Reach out if you want to discuss some alternative options!
