Corner Lot with Two houses zoned Commercial

General Real Estate Investing
1

for $50K. It’s 3/4 of an acre and it’s the busiest street in town! I was thinking of having the two houses relocated to some land I own, rehab them and sell them. Then try and secure a lease from an “gas station/oil company”. What are your thoughts on these ideas? Have any suggestions?

Thanks

2

I am in a similar situation.

I own - my residence - a 1/4 acre lot w/ house on the “corner” of a busy intersection. It’s 2 to 4 blocks from WalMart, THE prefered school, the hosptial, and a car lot. There is definitely commercial appeal & potential, but, it is years down the road before anything big could happen.

There are several twists:

  1. my property sits in the middle of a “U” - I’m surrounded on 3 sides by my neighbors property. She actually owns the corner lot. She’s 80+ yrs old & owns 3 acres. So a buyer would need to take both properties.

  2. the corner property right across the street is vacant and sits on three acres. I think it’s wrapped up in probate/estate. Old lady is in nursing home & family wont sell til …

  3. commercial property on 3rd corner has been vacant for 4yrs+. It’s a very small lot w/ old block building on it. ( 4th corner has zero potential.)

I have about 25% equity in my house. I could really use the $$$ to pay off other debt. I own another house that I’ve been rehabbing & could live in right now, so I’m thinking about selling my residence.

Problem is Speculation. Analysis Paralysis. I’ve been looking at spread sheets of what rental cash flow, and equity/apreciation would look like 5yrs & 10 yrs out & it looks pretty exciting.

Do I sell and cash out now, or, keep struggling with the debt I’m carrying, holding out for a bigger payout?

3

Okay. I’ve been looking at some numbers. If I sell, I will pay off credit cards, and effectively save myself about $10,000/yr in mortgage and credit card payments. If I rent it the number would be around $6,000/yr.

Over 5 years that’s a difference of $20,000 to sell vs rent. The house will appreciate some, maybe $5k to $7k ( about 2% per year over 5yrs). And, I will clear some money on the rent over my PITI payment, maybe $8k to $9k over 5yrs.

If I hold it & rent it out, 5 yrs from now I will have accumulated less than $20,000 in rent plus appreciation - assuming no vacancies,evictions, or repairs.

It looks like I will be money ahead if I sell today. I’m selling.