Hi everyone. I'm new to REI and still looking for my first property. I was looking through some properties when I came across a listing for a lot in what I would consider an up and coming downtown neighborhood. The listing price was $102,000. There is some sort of automotive shop that has been renting the lot for $1000 month to month for several years now. It's a C2 zoned lot. I was told it has electricity, but no sewer or water connected. It is on the street so probably wouldn't be too hard to get that connected in the future if needed. It has a starbucks and hospital close by. I was also told that a big company is moving in less that quarter mile away.
Just by this information alone, does this sound like a good deal? What other information should I be asking for to complete my due diligence? Is it possible that the automotive shop is operating there illegally, possibly without a business license? What kind of insurance would I need on this type of property? Would I be able to do the BRRR method with just a lot with no structure?
This sounds silly, but living in Los Angeles we go downtown and always have to pay a ridiculous amount for parking. I would always think that owning one of these parking lots would be easy money. If the downtown area continues to grow like I suspect, could this c2 lot be my dream parking lot? Does anyone have any experience buying a vacant C2 lot?
