Raw Land vs. Rentals

[Dan Erickson]

I live in Washington State, but am interested in investing in real estate in Southwest Missouri. The plan is to move back there in the future (5-10) years. I am considering purchasing some small lots and and pieces of land over the next few years. I have a decent salary at my teaching job here and properties are almost 50% less in MO. The only problem with this is that I can't make a rental income . However, purchasing rentals would require either hands on, or hired management. Any thoughts?

Keep in mind that I have no or little money down and want to start small, probably less than 50K. I hope to buy 5 properties in five years.

Thanks,

Danno

[Dan Auito]

Dan have you read the book magic bullets in real estate yet? If not you can download it for free at this link. go get it and come back. This book will answer a lot of your questions regarding your question.

I encourage others to add to this post but I have 290 pages for your answer and I don't think it would all fit here! Go gitt'er Danno!

http://www.prweb.com/releases/2005/2/prweb206557.htm :eek:

[Just Information]

Raw land can be a great opportunity based upon several factors:


Near a building boom
If zoned properly
If city utilities are available
If a sounding test has been completed (able to handle a structure)
You will find that raw land, commercial and higher end properties during a sluggish economy are not your best investments.

You will find that taking on a development project to be an expensive and cumbersome project you will never forget.

You will find that in most cases a SFR property is your best.

You will want to avoid ag type property.

This is not something you will want to take on without guidance if you have never played in this arena.

[investinAK]

You should consider some raw land up here in Alaska (Mat-Su valley)!! ;-) The area is absolutely booming, as there is nowhere left to build in Anchorage, so all the builders are headed our way!! 1-2 years ago you could get an acre lot for $10,000....now you can't touch one with all utilities for less than about $30,000! Make that a lot that is zoned for multi-family and you could see about $45,000--if in the right area. Just thought I would throw that at you! :)

[REIaddicted]

[I have just completed the ebook on hard money loans and will be giving it away to all Magic Bullet forum members - to get your password you will need to PM me on this forum and I will email your pass codes for your free download.


May I direct you to areas AWAY from Springfield.. pleaseeee :SM141:
Lisa

[Dan Erickson]

Thank you all for your suggestions concerning raw land. It looks like I have a lot of investigating to do. I will be making a trip to Joplin, MO over my spring break to visit a loved one and check out a few properties. I'll need to gather more info before and during that time.

The ebooks are great tools. However, at this time I only have computer access from work and that is limited timewise and paperwise. So until I get a set up at home, it may be hard for me to read ebooks in total. If you have any suggestions for book titles from the market it would be appreciated. I go to Borders quite often to read and study, but there are so many titles it's hard to know who is good and who isn't.

Thanks again.

[REIaddicted]

Just an idea, but you can burn the free e-books on disc.. then take to kinko's and have them print it.

Bill bronichek, john Locke, Jim from Fl all are great teachers. ( don't forget that our own Dan also has a book on the shelfs).
Lisa