Requesting advice! - Posted by Chad Heath

Posted by Chad Heath on March 10, 2001 at 08:07:57:

Thanks Eric! I appreciate you taking the time to reply like this. I’ll definitely start at the planning office and go from there. Chad

Requesting advice! - Posted by Chad Heath

Posted by Chad Heath on March 09, 2001 at 16:26:26:

In my area (Central Texas) there are several opportunities that have come up where I could buy small lots for almost nothing. But, here’s the catch. New city restrictions only allow enough room for me to put small mobile homes on the lots. The length of these lots are 75 ft. with a requirement of 10 feet space on each end. I know that Lonnie says not to buy under 14 X 70 if possible but these lots are very inexpensive and I may be passing up on a good thing and just don’t know it. I haven’t looked for smaller homes because of Lonnie’s rule of thumb so I don’t have any idea what risk I would be taking when trying to sell. Can you give me your advice please?

Re: Requesting advice! - Posted by Eric C

Posted by Eric C on March 09, 2001 at 22:12:40:

Hi Chad -

There are many small towns throughout Central Texas that have abandoned lots that can be acquired inexpensively through tax sales, or by contacting out of area owners.

Most of these same small communities also have few, if any restrictions; that can be both good and bad.

Often, you can get these lots in packages, or by the block for a reasonable amount and then have them replatted to suit your purposes.

Before you begin, I would have to advise you to take a look at Ray Alcorn’s articles here as well as his other materials. It’s his opinion, and mine, that you should make the planning office your first stop. Even in a semi-rural area, there will be some form of planning authority, although it may be more informal than formal.

Here’s the bottom line: can you acquire the land cheaply enough to make moving MH’s cost effective?

The answer is - it depends.

But I will tell you that I am actively buying developed lots in areas that I like for the long term. Lots don’t cost much, there’s almost no maintenance, little liability, and they will appreciate about as fast as any class of RE (if the area has appreciation at all). Developed lots in hot areas are also a favorite of mine.

In all, I think rural areas are great places to learn your craft. You will have few people to tell you no, but you will make some mistakes while you’re learning. That’s ok.

After you have the process down pat, then you can move on to better locations where the payoff (profit) potential is considerably greater. And where you can begin to stretch your capabilities a little.


Eric C