Help me with a land deal

I found a piece of land for about $7000. Its been sitting for a while , so Im thinking of offering $2000 for it and building a house on it fand use it as a lease option. Now the houses in the area are worth between 80K and 110K. My concern is that I cant get a house built that cheaply. Generaly speaking, is possible to have a house built for lets around 60k?

Sure it’s possible. Construction prices are based on the size of the house. I think the general rule for a normal house (not a mansion with all the bells and whistles) is between $75 per square foot and $100 per square foot depending on your market and the materials you use. That’s just a semi-educated guess.

There are also pre-constructed modular homes that can be assembled very cheaply.

You’re going to need to factor in development costs into your plan, though, aren’t you? Is this a spot lot in an existing subdivision? You may need to fund grading, curb and gutter, bring in all utilities, pay sewer fees…the list goes on and on.

Construction costs do NOT include land development costs.

If you don’t mind my asking, why would you lease-option a brand new house?

Paul thanks for the info.

I was thinking about doing the lease option because although this area is centraly located it is a not a highly sought after neighborhood, so I figured(guessed) that this would be the best way to go. Is this a bad idea?

Also, being new to real estate,and I am really wandering in the wilderness, as you may be able to see from my other posts, would you mind telling how to follow upon the information that you gave in the previous post. Most of things that you mentioned I never thought of(scary I know) so I realize I need to get educated about what things need to done, because I know I cant just throw a house up and put a for sale sign on it. Any help would be appreciated.

To anwser your other question, this is an established neighborhood, so I dont know why there is an empty lot there.

Thanks again. I really am learning alot from this forum.

You may not be able to build on it hence the long time on the market and low price. Find this out before you buy.