In Santa Cruz County, especially in the mountainous and rural areas, many properties lack the necessary expansion fields (space) due to factors like size, slope, groundwater, and zoning restrictions.

Is there a better option?

Would a small multifamily cashflow and be a better option for you?

I have an option to purchase an MR1 lot in a great location in LA but I'm skeptical regarding uses for this kind of land.

Hello Frank,It's fantastic that you are looking into your options! 

I would own the company as a Franchisee, but not sure if this a good option with all of the associated fees.

For instance, let's say you do the rehab and go to rent it...considering the relatively low value of the property, it's reasonable to expect that the tenants will have low or no credit, they may be unemployed or on income assistance, they may have minimal employment options, and/or they may have a very spotty history with prior rentals.

I have an option to purchase at an attractive price but would rather not bring cash to the transaction.

Definitely slow down and get a handle on the hidden costs and benefits in a few different options. 

Additionally, alternatives like real estate crowdfunding or investing in RE mutual funds offer diverse options.