Advice...needed from some older wiser people

Perk = incorrect abbreviation for a Percolation test, same as a soil test for septic. I get in a hurry sometimes and type Perk, even though I know better. 8)

Another thing, don't count on getting a city water/sewer connection just because the neighborhood a short distance away has it. Depending on the situation with their system, it could be decades before they offer to connect your property to the system. My former landlord is still sitting on a small lot/house that the city won't hook up, and his property sits only 300ft from the last house on the public sewer.

BTW, I've followed your posts for some time now. Thanks for detailing all that you have through training and working with W/S. You seem to have a good head on your shoulders and I suspect you'll do fine looking out for yourself.

 

I wouldn't go over double your yearly income. In fact, I would start small and work my way up. You are looking at over $1000 month for 30 years. There are too many things that can go wrong with owner financing.
I got screwed once when I put a deposit down on an acre and I was getting bank financing. Had the land surveyed and the neighbor come over asking what we were doing. He said he owned the land. ??? Sure enough after a title search, there was two deeds floating around from a 50 year old mistake. The 70 year old people that were selling it are on SSI and have nothing that I could sue to recover. They already spent my money. He's currently is paying me $20 month for six years. And I have to go get it, lol.

No matter what, spend $200 on a title search first.

You have to ask yourself is this person legit? Why would an old person set up a long term note? Has anyone else tried to buy the land prior? If they keep getting deposits and have the person in default the first missed payment, they have a good thing going. The asking price dropping $75K in such a short time, flags ought to be flying.

The person is not a financial institution so you are not protected in case of a foreclosure or the person files bankruptcy.

You sound like you have good credit. Mortgages are at a all time low. Like 3%.
I would definately go through a bank. You definately want property with all utilities. City water is a must.
I would present a plan to a bank to purchase like 20 acres for $100K. Run you a gravel road right up the middle. Take 10 acres and lot it off in one acre tracts and ask $10K a lot. You can even set up financing through the bank you got your note from form the buyers. Then when you get it paid off quickly, you have 10 acres free.
Or you can do like the development down the road and run all the utilities in on a paved road. Then ask a little bit less like $22K for a lot.

That's just an example. You can do it with any size. People like 5-10 acres, but more can afford just 1-2 acres and they would sell quicker. I'm just making up numbers. You have to see what the market is doing in that area.

But starting out is a learning experience. Start small to learn and protect yourself. If you do a good job and flip it easy, Then buy you more and do it again. Banks would want you to start small to prove your credit worthiness and business plan.

I would stay away from eBay and craigslists. I shopped eBay for over a year. You eventially catch on it's the same people selling the same crap time and time again.

 

Don't forget PROPERTY TAXES. They can be very high. It also takes a lot of time and money to keep up the amount of land you're talking about. Unless it is 100% wooded, you will need a tractor and bush hog just to keep it cleared.

He droped the price for a reason, he can't sell it. The taxes and upkeep may be killing him. If he's willing to owner finance, that also means he want's out pretty bad.

If you still want it after checking everything out, including property taxes, lowball him. Banks won't loan on vacant land. He knows this. That, and he's hoping to recoup some of his price reduction with interest, is why he's offering financing. Another development near does not mean your property is worth more. Most newer developers are trying to give away land right now. One just a few miles away from me was selling lots on the river from 75 to 400k three years ago. Now the're down to 35k, and still can't sell them.

 

Tough....just bought my house almost 2 years ago (same age as you) when I was not driving....there is a lot of time put in signing and closing everything. Hard to say how that all works when you are on the road.

However, I know how many good deals are out there right now, and it doesn't matter how many turns your life may take, your property (unlike anything else we own) will hold its value at this time and only continue to rise over time. Even if you have to strap yourself financially, such an investment may be worth it.

If it were me, and that was what I was looking for in the area I wanted, I'd go for it. But remember, times like this, its ok to be picky