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IMO, Land appreciation is always speculative even when you know there are projects that may increase the value.

However, I suggest you look for areas where there are major projects planned. Example: In my area, Panama City, FL we are about to undergo a huge growth spurt. A new international airport is slated to begin construction next year which will replace our current airport. You can imagine what has happened to land values surrounding the airport site.

What many have forgotten however, is while the land values around the slated airport has gone sky high, there are other good land investments outside the area.

Realizing an areas growth potential is very important and speculative.

Hope this helps ;)

What you are considering is land speculation.

There are many decisions to be made in regards to speculation, some of which include:

Is growth expected in this area?
Are there any projects slated in the area that would increase/decrease the value of the land in the future? Not all land appreciates.
What is the land currently zoned? Can it be re-zoned?
How has the land been used in the past? Un-improved, Agriculture, commercial, Industrial? Are there any toxic residues from past usage?

One thing to remember is land investment is a non-revenue (meaning long term or speculative) generating investment therefore the money invested is throw-away until you sell.

When investing in land, it is prudent to know what projects potentially affect the value of the land and the potential use of the land.

Hope this helps:)

You might consider purchasing a book on Real Estate Investment. There are many good ones available. In the meantime, here's a few definitions and calculations for you:

Cap Rate = NOI/Value
Cash Return (Cash Flow before Taxes) = NOI - Annual Debt Service
Cash on Cash = Cash Return/Investment
Debt Service = Principal and Interest payments
DCR (Debt Coverage Ratio) = NOI/Debt Service
NOI (Net Operating Income) = GOI - Operating Expenses
GOI (Gross Operating Income) = Potential Income minus Vacancy
Value = Asking price, purchase price or appraised value

Hope this helps.

A suggestion I would make is this:

Contact the units you are interested in and ask them if they will hold the unit for a non-refundable fee. Typically this might include a full months rent in advance or other fees.

They will most likely ask for your financial information to clear you prior to accepting an application such as this. If your credit is good, I don't see why this would not work. It happens all the time in my area of Panama City Florida.

Many private property owners will do this but you may have difficulty with property management companies.

As an example, I require a full credit and background check prior to allowing a hold on a unit. Once the potential renter is cleared, I will hold a unit for upto 30 days with a fee equal to one month's rent which is non-refundable. Once the tenant arrives, they sign the lease, pay the remaining financial requirements and move-in.

Try and think from the property owners perspective and make your offers based on this. After all this is their investment and they want to make money.

Hello all,

I am a Real Estate Agent in the Panhandle of Florida, specializing in Commercial Real Estate. My wife Jennifer, specializes in Residential Real Estate so we have the bases covered :D

I look forward to working with many of you in the future and being an active member in this community.