Newsflash: Buying a tear down abandoned house vs buying raw land to build a house on

With the market heating up here in the Midwest it’s getting tougher and tougher to find a house worth buying that meets my criteria. I have done the realtor bit, but haven’t had much luck there. Through networking I have found quite a bit of available land that isn’t on the market yet.Property 1 is sitting on a nice 3 acre lot with a little bit of overgrown grass and weeds. The house is in shambles and not able to be saved. It’s not even safe enough to walk inside as almost everything has collapsed. house has a well and septic already, but unsure when they were used last. They are asking 34k. A new house would have to be built on the site.Property 2 is a farmer that wants to part out his land. He has 88 acres so I can get whatever acreage I want. He is only asking 2k an acre. Well below what it’s worth. There are other developments across the street. City water available, but would have to put in a septic system. The city requires I must build on a minimum of 4 acres in this area. I was recommended a quality builder in that area who I trust. They quoted me $80sf which is pretty good considering new houses start at 299k in the area. And that’s for a no thrills 3 bedroom 2 bath with 2 car garage on a quarter acre lot.A few other properties we looked at had building restrictions on them that even the realtor didn’t know about.I find myself doing more and more calls to the city to find out more info since all these realtors are clueless.Rentals are in short supply and get snapped up almost immediately. I have no doubt I could either fix and flip or rent it out. But I have never dealt with a complete tear down before and that makes me nervous.


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