I live in South Carolina. I am new to REI - I have stayed in the educational phase for too long and really just want to start doing things and learning first hand.
I am 32, married, have small children, a job that barely pays the bills with no real savings or retirement. I am in motion to improve my career but that is neither here nor there - point being I have little/no personal money to work with and will be a few years before that changes.
So I have been racking my brain as to how to get my foot into REI with the resources I do have.
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My mom was given almost 3 acres of land many, many years ago. It is 40 minutes from my current house. It is undeveloped or I think the term is “raw.”
My grandparents have land in front of my mothers land that is another 2.5 acres or so and runs along a well used road. The area is growing and developing. It is in a rural area but within 15 minutes of a large city. The land is in a good school district as well.
My grandfather passed years ago and my grandmother is in poor health. My Uncle has basically been given the land with my grandparents house (it would be his in the will anyway). My mom still owns the land behind it.
My uncle is looking to sell the land with the home, his land and home, and possibly get my mom to sell her land with it because he is getting up in age and is looking to basically liquidate and move to a smaller, easier to maintain home and area.
The home is nearly 100 years old (but not the cool 100 year old houses - this is a more humble one). I have done home remodeling and repair for a few years and I would say that “flipping” that house would not be economical or profitable. The house is in need of major repairs. The roof is in bad shape, wiring throughout the house would need upgrading, the floor plan is awful, the flooring is in bad shape, no HVAC, etc.
My Uncle contacted a real estate agent and was offered $25,000 just for the land because the house is worthless the real estate agent said. My uncle believes the land is worth more then that. Zillow for some reason has the address possibly worth $80,000 but I don’t know how they come up with that number because I know that is probably incorrect.
My mom wants to keep her land and would even love to buy my grandparents land and house but it is just sitting there and they don’t have the financial means to buy it from my Uncle. My Uncle wants to sell the land and house and be done with it and have the money to use on retirement. I see all of this as a possible way to step into REI!
My mom said in her will that her land is set to be divided 4 ways between me and my 3 siblings. I have been pondering on REI possibilities. Since my parents and my relationship is very good and if I approached them with a solid business proposal they will likely support it.
I currently live in a house with my family. I have been trying to think of scenarios and what path I am wanting to take.
Should I ask my mom for my 1/4th and come up with money to put a trailer on it and begin renting it out - but then again that could be a large financial strain until I have more working capital?
Do I put a trailer on the land, move my family out on it and rent out our current house that is new, in good shape, good location - and I could possible get 1.5 times the cost of my mortgage for rent? Then do I see if I have enough equity in my home to borrow more money to invest somewhere else?
Is beginning REI with rental properties especially when you are scratching by each paycheck a horrible mistake? I just want to get my hands dirty and I feel this land has a good opportunity for me somehow.
I know this is long winded. I wanted to give a lot of details to hopefully let you all give specific advice or recommendations given the situation - or maybe I have just confused everyone 🤔. Either way, thank you for your time and responses.
