There are a lot of questions that need to be answered before this one. There are questions of financing, demolition costs, rebuilding costs, building permits. Possibly the most important is will this be an investment property that you will rent or resell in the future or is this the neighborhood you want to build your dream home in? Let me know if you'd like some guidance. Good luck!
Jeff Metcalf, REALTOR(R)
Watson Realty Corp.
Sure, go ahead and buy. If you can acquire real estate between 20 to 40 cents on the dollar, you have a lot of latitude regarding what do do next.
Of course, hopefully you are aware there are a thousand things that can go wrong. Then you end up with yucky....then not so cheap, then liability. I know you willl compete the due diligence required.
If this is your first investment purchase, it always hard to pull the trigger. But you must start somewhere.
Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
Let chat real estate on: http://www.RealEstateMadeEZ.us
I would advise working with a Realtor to conduct a market study of the area. What you want to know is the approximate market value of the property once you've rebuilt on the land based on current values of similar (reconstruction) properties in the same area and based on the what you plan to invest in the new home.
If you over improve the property, you will likely enjoy living in the area love, but you may end up with a home that is not worth the cost of buying the land and rebuilding on it.
If you plan to retire in the home, who cares! Buy it, build the home you want, and live happily ever after :-)