Houston Texas market?

I am planning to buy an open lot in Brazoria County community, instead of building a house. i will just hold it for a year or two and flip.

Please advise.

Howdy Dennydo:

I like income property as opposed to vacant land. Taxes and interest expenses (or opportunity costs for a cash deal) are very high. I do not buy for appreciation alone but need cash flow on rentals or commercial deals.


My partner and I have been talking about doing the same type of transactions. I have been doing research on them and it seems like you have to come to the table with more cash upfront (20%). Is that what you are finding or am I off?!?!

Are you thinking of renting the property out once you have acquired it?

Good Luck
K. B.

Some investors specialize in building new homes, renting them, and then selling them to the current renter or another buyer within a year or two. It’s not a bad path to take.

Resale houses are more plentiful, established, and take less permits/money to acquire. Depending on where you build, it may take you longer to rent the property. Just run your numbers to make sure it’s all worth it. Find out how long it takes to rent in the immediate areas around the lot.

dennydo I don’t know were you are, but Brazoria County is rather large and mostly rural. It may take more than a year or 2 to get any money out of it. Vacant land in Texas does not appreciate much at all unless it is where a developer wants it. In Brazoria County there are some growing areas. If your lot is near one of these, and is it on the correct side (the side where the growth is headed toward) of one. I mean if you are next to SH288 and they are putting a new subdivision in and the land at the entrance is being looked at by Kroger then that strategy may work.

But buying land and waiting for it to go up is speculating and not investing. Investing is doing something to add value not waiting around for the economic laws to push up your value. Speculating works sometimes and doesn’t sometime. Investing works most of the time (when homework is done)