I'm getting $1,300 for a 1/1 in a class B development

Jonathan look up the taxes and divide by 12 to get monthly tax costs.Look for the HOA docs to see if there is an assessment and how much.Usually if you find a listing on MLS in that subdivision there will be some houses and it will list association dues monthly or yearly.For instance if taxes are 1,000 and HOA 1,500 then you have about 208.33 a month in costs.If you buy for 4,000 and hold for 2 years you have to get at least 9,000 in 2 years time to break even and even more with closing costs etc.That money will be dead not generating a return for you.You also need to know the soil sample and build ability of the lot.This will be a factor from who buys from you if they want to build a house.On the MLS you can see what developed lots are selling for.Is this lot developed and cleared with pipes sticking out of the ground or does it still have all the trees and uncleared and ungraded in it's natural state??

Simply, how do development costs get added to land values so a bank honors that cost my down payment amount of 20% loan to value?

CRIME is a big one.The percentage of non-violent to violent infractions and if crime is increasing or decreasing in the immediate area.Intermodal transportation study is another and the future land use map.This will give you an idea of where they are today and what they have planned for the area in the future and how the city and county will be allocating their resources to develop certain areas.Much more items than this but it's been a long day and my brain is out of fuel........ :)

. - If you follow a company, you'll be kept up to speed with the latest developments at that company, but otherwise, the new companies directory should not affect your experience on the site, unless you want it to. - Companies are NOT able to post on our forums.

I suggest you identify the lender who will perform the refinance FIRST ...

Greg, As John pointed out, you first need to identify the highest and best use of this property for profitability, is it a rehab flip, a rental, sell as is, or turn a sows ear into a silk purse....?

Honestly, there are deals to be had in most places -- you just need to know how to identify them, That's going to be your first mission -- to determine what strategy to employ and to learn how to find and identify what would constitute a great deal.

I recommend researching such things as an an area's projected growth, renters to owners, community development, business growth, etc.Good luck.

The most difficult to contend with was when the plumbing under the slab of the house had developed multiple leaks and needed to be replaced!