Is this lot too small?

Was seriously considering purchasing a home on a 25 x 130 lot then spoke to my father who said I should pass as the lot was too small, should someone want to do a tear down.

My plans were to rent it and allow it to appreciate for an undetermined period of time.

The current owner purchased it 1.5 yrs ago for 196k and now trying to sell for 250k. Avg appreciation in the area is 5%.

Any ideas?

Most cities have a minimum lot size to build something new on. and it is bigger than 25’. Fint out from the building department what restriction there are. It would seem the property is in a San Francisco type area and the value is the land. If you can not get the rents to pay the PITI then it becomes speculation. Whole different game. At this point ajacent owners don’t want it so how will it ever get an owner unless they plan on redeveloping the area…