re: Should I buy a lot for $5000?

Buy land, God ain’t making any more of it.

If there is a church next door be sure to set up an LLC before purchasing

Yes, insurance. Not for replacement of the shrubbery, but in case some idiot drowns in an unmarked puddle, or a kid falls out of an attractive nuisance aka a tree and becomes a quad.

Unless you set up a LLC, you may find a whole lot of hurt in passed along liability.

Those sleezy lawyers are out there to take money from ......you.

I’ve made double that sitting on my arse working from home.

A fool and his money

Personally. Too low of a profit margin. If you’re clearing, one little thing happens (I.e., hit a gas line, break an old septic roof, anything) and you’re under water.

With that said, if you just want to see how it works. 5000 is pretty much zero risk.

quote:

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It's an over grown lot in a run down neighborhood without a paved road. I could buy it and clear it and sell it for 7-10 thousand.

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A lot of work to make zero because clearing land isn't free.

Um, buy for 5k...

Spend ______ clearing the lot

Pay ~$500 in advertising costs or realtor fees

Sell for 7-10k

Don't profit.

I bought a house in Florida in 2005, near Delray Beach, a half block off the ocean, but it came with a deeded strip of property for access right to the beach. Paid $680k. It was split into a duplex. I didn't live in it. I had renters for one side and the owner moved out of the other side. I upgraded on one side. Moved the renters out to the upgraded side, putting about $75k total into both sides and another $15k in hurricane repairs. Raised my rent, got another renter and let them pay for my mortgage, insurance and taxes. I flipped it 2.5 years later for $970k. That was in late 2007, just before the housing crash. Two years later, in the deepest part of the housing crash in Florida, the guy went bankrupt and let it go back to the bank. I almost bought it back at $665k on repo sale, but the wife was too timid to go back into real estate speculation, especially since we lived in DFW. Too bad. I let her talk me out of it. I checked last year and that house is on the tax roll now for more than $1.7 million now.

Roll the dice, it may only be $5k, but learn from the experience. Just don't do it because you want to. Do it if it makes good sense.