I have been thinking about buying land and holding it until I'm ready to build, rather than building one of these pre-fab homes. I've found a decent plot, in a good area... but wanted to know if any of you have been there, done that.

Thanks for ur input!

-Logic

 

bought some waterfront up north. Already has appreciated about 500% in 5 years. I'm looking at another piece next week.

 

I'd like to buy some land, and sit on it. I'd build on it in about 20 years when I'm ready to build my retirement home.

Here's the tread I posted when I had "financing" questions

https://acurazine.com/forums/money-investing-17/financing-land-without-building-162618/

 

Im more interested in buying a property with a home on it that can generate cash flow

can raw land generate cash flow?

I understand that you want to build your primary residence there, but as an investment vehicle can raw land generate cash flow?

 

only if you can sell, lease the lumber rights or in the case of agricultural land, rent it out to farmers. I've seen both, my family is in the midwest and rents a lot of land out for cash by the acre. Land just keeps appreciating and takes in cash every year.

for me, we bought 4.5 acres with 190' on the water facing Canada in Michigan. Great property. Someday we will build. In the meantime, it's really appreciating. We are trying for another 3 acre piece with 250' of frontage with house and outbuilding. We will fix it up and either rent by the week in the summer or maybe set up a B&B.

 

Yes but only after time not short term.

 

Generally no, raw land does not generate cash flow, just tax bills and liability, exception is if you can lease it out for something like a cell tower. Other possibility, also remote is oil, mineral or gas rights. IMHO, raw land is for investors with deep pockets who have watched development trends and can afford to wait. People who are going to build over the near term 3-5 years may also want to consider it.

Jerky, out here, especially anywhere near you, pretty difficult for rentals to generate positive cash flow unless you put 30-40% down. Prices are just so high right now. Slightly easier over here in my area because of less dollars.

If you want to do some speculation in real estate, send me a pm and I'll share a few ideas.

Mike

 

i doubt that holding it will generate cash flow, if anything while it appreciates in value it also costs you more to own. Best thing to do with land is either develop it into something that can bring you cash, or hold it for later, or hold it with the intent of selling

 

Yeah, My idea for a land purchase is not for generating cash flow, but for building a retirement home with a kickass garage.

If you're looking for cash flow buy a tenement house

 

depends where you're buying... personally, i'd just buy the lot (clean it up if it has trees and such), sell it later. i wouldn't build a house on it, unless i had to, to make money off it.

no headaches involved when just purchasing land... but when it comes to building, if you pick a s s h o l e s to work with, forget about it...