My new leach field alone was $18k. It failed as soon as it was turned on. Contractor ghosted all communication. Finally filed a complaint with the state health board. Contractor sent me a check for $24k to have it repaired, which cost less than $2k. I ended up with a new leach field for free and $4k in my pocket.
Spring of 2022. I'm near a big city in the midwest. In my area at least, there are so few companies that will install a new system compared to companies that will repair or service existing septics. The ones who will start from scratch can charge whatever they want. I spoke to at least 30 companies before I found two that would even give me a quote. Sadly! Oh also I had to pay $2k to an environmental enigineer to design it.
Septics can be highly variable in cost. It depends on state and local regulations, most of which revolve around setbacks, bedroom count, and height above water table. The closer to the water table your septic will be, the higher the cost. Most counties in my area will only now allow mound systems which are extremely expensive compared to a standard tank and drain field.
All 3 can be applied to the bigger house you build down the road.
Tiny houses may be against local code / zoning.
You can put down a “modular house” affordably and it’ll be a lot more usable than a tiny house.
Even a singlewide trailer is significantly cheaper than a tiny home (though also not always allowed depending on zoning). I roll my eyes at tiny homes because you’re paying a fortune for less space to get away from the stigma associated with having a perfectly fine trailer.
>You can put down a “modular house” affordably
Where I live that usually means mobile home and isn't permitted.
OP really needs to run their plan past the local Planning Department and s3 what is already available for utilities and what is permitted on the site.
Yeah sure, but I can live in my own space now and eventually have a guest house or tiny house I can rent out and I don’t have to deal with the hassle of renting.
I am open to a modular house as well.
Building a lot, clearing it, building a tiny home on it is all 100x the “hassle” that renting is. The only thing that involves is showing up to an apartment complex, signing some papers, and moving in a few days later. Unless you live in a VHCOL area/very rural it should be pretty easy to find an average apartment to tide you over for a few years.
Owning a normal home is not comparable to clearing a forest and putting a tiny home on it. If you’ve never done that type of clearing, I implore you to go find a 10x10 patch of trees and see how long it takes you to completely clear it. It’s a huge hassle
Now, as a realtor, I'm not saying shit.
It sounds like you may or may not want to be a little redneck to save some money. As a guy from a redneck area, have you considered putting up a shed? Much less regulation on one of those 12x20 sheds from home depot. One could always finish the inside a little, as a 'tree house for the kids".
You say you have to clear the woods. How wooded is it? With just enough clearing for a shed and a car will people even know you're there?
What's the city/ county like? Are you going to have a building inspector there multiple times during the project, or will he show up "sometime"? Are you allowed to camp on your own land in an RV while waiting for the construction of your home? How's the weather? Can it be comfortable living in a camper, tiny house, or shed? Is there going to be city sewer, water, or electric accessible? Can you just drive a shallow well for your own water for the time being?
There's a gigantic amount of questions that you haven't asked or answered, and a lot of info not given to us here.
Also look into the deed restrictions of any property you are interested in. Look up the property in FEMA flood zone maps to be sure it isn't in a flood zone of any kind as you would not be able to build without approval from your local zoning in most cases. Flood zoned property also requires flood insurance in addition to regular insurance.
If you want to redneck all of these issues I would still be informed as to what issues you might face with zoning and inspections in case a neighbor reports you or sues you at some future date.
Hard to redneck it on less than 1/3 acre surrounded by other homes and major road.
Hard to hide a shed, Johnny on the spot, a portable water tank attached to a trailer for hauling it, and solar panels or a generator on 1/3 acre.
It’s a lot easier on a few acres or more on a private gravel road.
But thanks to drones, it easy to get caught by assessors wanting tax dollars now.
True, harder, but still possible, and quite possible that it's perfectly acceptable, because I know of places with less than what you've described and no one cares.
They are very lucky, or in a place that truly has no restrictions. Which is rare these days, people already bought that land up.
There are more stories of people trying to redneck it on 100 acres in the middle of nowhere and getting caught thanks to neighbors and greedy assessors.
It's not really a luck thing. Some states have 30 million people competing for room. Some states have 5 million people that want to be left alone. That's a simple fact of life that many people don't seem to follow, based on other stories in this sub where sometimes a half acre goes for $500k, op said he's getting his nearly half acre for $40k, there's places you can find it for $10k, but everyone wants to be where the people are.
Why not just buy a used trailer in a park for now? It’s a good halfway point between renting and owning. You have almost enough for something close to move in ready, your lot rent will be lower than renting an apartment, and you’ll have most of the autonomy of homeownership while being able to save a lot of money for buying or building a home. You aren’t financially ready to build even the smallest of homes right now but you can be in a couple years if you make good decisions now
Check what the sewer situation is before buying. Septic systems in my state require minimum acreage and also offsets from lot boundaries and other septic systems and wells.
I've manufactured and installed traditional and aerobic septic systems in my younger days.
I wish you the best! It’s just that if this was as easy as you seem to be envisioning, more people would do it. It is far more often than not financially infeasible relative to just buying a house (obviously at a premium in comparison).
This won't work. Since you say the lot is .3 acre I would assume it's a city lot. This will come with building restrictions most likely even if it's not in an HOA. It's doubtful that tiny homes or mobile homes would be allowed or camper living. What you want is something outside the city and several acres for a plan like this to work.
Please do some research at your local building and planning dept. There are several red flags that immediately jump out at me.
1- why is this property still vacant while being surrounded by developed real estate. One guess is the elevation may be low, and the surrounding lands may drain into it, causing huge problems if you want to build.
2- Lot size too small for septic and well. There are set distances they have to be apart and .3 acres probably ain't enough. Around here you have to have a minimum of 3 acres to have a septic system.
3- Check cost to hook in the existing local water/sewer could easily exceed $30k in some areas. Could be municipal or local co-op.
4- Check what that particular lot is zoned for. Zoning could greatly affect your building setbacks (how close you can build to the property line), which are important on a 1/3 acre. 15 ft residential setback, no problem. 50ft agriculture setback, big problem.
Buying property is fun, but can be heartbreaking for the uninformed.
Depending on area, wetlands can fuck you greatly. Wetland delineation exists for a reason. About 5k+ a pop. If drainage into the area does happen, if a creek or something appears seasonly you are also going to have fun with that. Seriously wooded land in certain areas is no joke. Def glad my SO does surveys and assesses land as a permiter for a national lab.
Yep, very low land with a layer of clay 2 ft down. Most folks usually have to partially bury the tank then bring in dirt to mound up around it to get it to perc.
Also, I believe its required to have 150ft separating the septic from the well around here.
Also, "tiny house" is impossible in most areas, unless it's an actual house that fully complies with code and just happens to be small. It's considered a trailer, and most civilized residential areas don't allow people living on trailers.
And also zoning restrictions. Ive been running into those with my 80ac property with no neighbors. Keep in mind if any of those houses make a complaint the county has to legally investigate.
the land appears flat. And the second lot I am looking at has enough space for a home without clearing trees.
Although there is 1 large tree I would like to clear because things will be laid out more nicely.
Not unless you have acres and acres to harvest. Cost to bring out the equipment for a small stand isn't worth it. They won't do it if you pay them to harvest.
Where I am you're not going to get money for your trees, but you might be able to get someone with a mobile rig who will trade removal for the wood. If you're lucky. And it's a really high value tree.
You have 10k with 70k salary and you're asking if you should buy 40k in property... at these lending rates? No.
I will give you advice if you plan to do it anyway because you kinda give off that vibe: if you DO invest 40k into a moneypit, don't invest MORE on top of the 40k, ie, don't buy a trailer/tinyhome, and don't buy a chainsaw or spend time clearing the lot. If you buy the lot, sell the timber, and stick a "for sale" sign up with a throwaway phone/email.
The developers of the adjoining property have already seen the 40k list price and declined it. The PROFESSIONALS have declined it. So sure, sit on it, and see if its worth more than 40k in five years. Maybe, maybe not.
The timber you sell, if its actually timber worth selling, is going to net you \~$2k an acre. So maybe $500 if you're lucky. This is a dumb idea but go for it.
This! This is the efficient market hypothesis approach. What is the reason the professionals have passed on this property because they all say that it was available and have passed? It isn't that only the OP knows this property is for sale.
Why are you so condescending and making so many assumptions ? Kinda feel like you’re projecting
Professionals have different considerations than I do, and who’s to say a professional won’t be the one who eventually buys it.
They’re saying that people who do your plan for a living have already passed on the lot…so it’s worth considering why that may be.
Raw acreage + RV until you can build the real house…people do this, for sure…I did it myself once, and for the right situation, I’d consider doing it again.
Just make sure you get a reliable, respected builder to quote you the construction cost…so you know what you’re getting into…
There will be something very specific in the land listing indicating the (inflated) timber value on the property. If it does not include this, then there could be little value due to age and type of timber, or it hasn’t been cruised for valuation.
They’re speaking the truth. On its very face, your income, even with what you expect alimony to be, is not enough income for what you endeavor to do with the property. If you can’t pay 40k in cash for the lot, you shouldn’t buy it. Forget about all the stuff you’ll need to do to prep the lot for a structure.
Never presume. Put your feet on the ground and go find out where you can find electricity and a water source and what happens with sanitary, sewer or septic. I own a good deal of bear land and it’s not as easy as it seems sometimes and sometimes it can be cost prohibitive to do what you’re imagining depending on how far you’re going to have to bring power in from the source. As noted many places do not allow a temporary structure, trailer, or tiny home even in rural environments.
You are to be commended for trying to find a way.
You can't know if plan holds up unless you know building code in area, costs for infrastructure (water/sewer/power -all of which include earth work), cost to clear land, cost to build.
With inflation I guarantee you every one of those costs will escalate (how much is dependent upon inflation - look at costs over last 5 years no builder could have predicted doubling).
Cost of permits, who is clearing the lot and their costs. Zoning determines what can be put on a property. And long term - desirability of region.
you absolutely need to speak to a local realtor AND get a detailed list of all costs involved AND realize you are going to be paying property taxes (which will be more than what they are when you buy) on empty land.
If you ever need to sell - it will not have appreciated like a home. I don't know any realtor or financial advisor to suggest this as a way to go. You have 10K now - but you MUST understand all the costs AS you own and along the way and that is even before the type of inflation you will see by time you are ready to spend the money.
Also, speak to someone in the area who has done something like this recently. From all other posts and realtors posting, everyone would say if you know the HOA dues aren't going to sky rocket, either try for a low end condo or look into financing on a small home where you could rent out a room. Good luck!
There is likely a reason no one has developed the 0.3 acre lot in a "good" area.
Based on your responses I say go for it, OP. You're due an expensive lesson.
Buying a lot in a nice area sounds nice in theory, but in practice building a home on a lot can become very expensive very quickly because there are often unforeseen obstacles in the process.
The National Association of Home Builders (NAHB) cites the average cost of building a home in 2022 was almost $400,000 and costs have likely risen since. Check section II for Construction Cost Breakdown - [https://www.nahb.org/-/media/NAHB/news-and-economics/docs/housing-economics-plus/special-studies/2023/special-study-cost-of-constructing-a-home-2022-february-2023.pdf](https://www.nahb.org/-/media/NAHB/news-and-economics/docs/housing-economics-plus/special-studies/2023/special-study-cost-of-constructing-a-home-2022-february-2023.pdf)
Meanwhile, living in a tiny house for a few years would be a challenge without plumbing or electricity if the area would even allow you to do so.
Looking at your income and the financial risk, this may not be in your best interests.
Each bank can stipulate their own rules so I could believe that especially for a smaller, more rural bank. Fun fact that most lenders won’t tell you: if you are looking to buy, you can have your credit pulled from one lender, three lenders, or one hundred lenders - and it will still hit your credit the same as long as it’s all in a 45 day window. So be sure to go talk to multiple lenders. However, if you are rate shopping, you need to do it all on the same day because rates can literally change (and do change) by the hour.
Op it seems like most of this advice is don’t do it and you obviously don’t want to hear that. I’m used to hearing no and would prefer to, like you, find out for myself.
So I’ll say this: Go knock on the door of the house next door and ask them if they have city water/sewer (most Zillow listings show this info. Even if the house isn’t listed for sale). Price out a tiny house. Head over to a plumbing or home building subreddit and ask the cost to hook up to city water/sewer in your area.
This idea has definitely been done before. I’m sure there are people on both sides of doing vs not. All you can do is your research and make the decision for yourself. But I’d make sure I have every obstacle/expense mapped out before making the decision. Good luck with which ever route you choose!
Assuming it was. If it isn't, I wouldn't mind finding another lot. I just want to know if this plan holds up.
I found a comparable lot, 50K, no HOA, .5 acres (which I much prefer) and tiny homes allowed.
Are there utilities / plumbing available to tap into at the location of the $50k lot? Is the area convenient to where you live, work, socialize, etc? How much would the tiny house cost to build or put on the property when all said & done (approx)?
I would hold onto my $10k and continue to rent for now. Take the $10k and put it into a HYSA / CD / something else and start saving for your first place.
All that means is the person next door sorted out their lot. You'll still have to sort it for yours. There might be an electrical main you can hook up to but even that is $$ and water/sewer in a forest is more than likely septic and well.
'B/c I want this to be true, I won't research too deeply & will simply believe I'm right, since I don't yet know I'm wrong.'
Are you an engineer, by chance?
You should never assume. And at your income, even after alimony, this really isn't the kind of project to ever make assumptions about. It could ruin you with just one mistake.
You're definitely being optimistic about the whole situation. What will it cost to hook up to electric? Is there water in sewer? There probably isn't so you're looking at a well and septic which is $$$$$$. You need permits for everything and you'll typically need to ensure you can even have a tiny house.
I was looking into similar a few years ago and discovered it was way cheaper to just get an already improved lot with a trailer on it then start from scratch.
I looked into a similar sort of thing last year, and there's just too many things that get in the way.
- Is the land buildable? The cheap land is almost always wetland, has a lot of slope, etc. making it difficult to do even something barebones. (Especially a house.)
- Local codes are always a wildcard.
- Services. Roads typically have electric. Water/sewer are often not there, drilling a well can be unpredictable in cost because they have to keep going until they find water, or might not at all - this needs a land survey. Septic is probably simpler to deal with but I'm sure it has its own concerns. Internet can be a problem, you might have to live off of 5G or satellite or something if cable/fiber aren't available.
Not necessarily giving up yet, but damn it's a lot of work, and will more than likely involve a litany of professionals to help. (Not cheap lol.) Good chance I just take whatever is on the market after saving up enough money, as it seems a lot easier to scrutinize an existing house.
That said, it still may be possible to cut things down and live in, say, a trailer on the property. (Often subject to less restrictions than a tiny house - and most places that even allow tiny homes require a larger home.) Obviously check local regulations, etc. as these things are not technically intended for long-term living.
Room/Apartment/Condo will depend on your needs. I don't think I could share a room with others as I have absolutely no tolerance of being woken up and dealing with other noises. Apartments/condos tend to be better with this. It's a lot of extra money, but livability is important - if you have good roommates though, you're in luck.
If you have a stable career of remote work, you may be able to look in lower cost areas as well. Do your due diligence and make sure it's somewhere you won't lose your catalytic converter or some shit.
Good luck!
A lot of people have the desire to to this and the reality is that it costs way more than you think it will cost to get the property liveable. If you don’t already know about things like running utilities, septic and wells then it tells me you have probably never lived in a rural setting and likely wouldn’t be equipped to handle the reality of living in an environment like that and trying to make it work for you. Buy a condo
Environmental regulations when it comes to "clearing land" and building on it can be absolutely brutal, and there may not even be a legal site on it to build on, especially if there's running or standing water ("wetlands") anywhere in the vicinity. Not saying that's the case here, but I've seen that so many times that I'd do a lot of homework about all local and state laws before assuming anything. Also, these laws are changing all the time--and never in the direction of being more permissive, so even something allowed now might not be in the 3, 4, 5 years when you're ready to build. Your plan might work, but there are too many risks of backfiring for you to stink your whole nest egg into it in my opinion.
.3 of an acre is a pretty small lot. I don't think you'll have the space to put any size of livable structure and then built a single family home on the lot at the same time. I think you'll have to move the tinyhouse or modular unit before you build.
I checked on replacing a well with a utility hookup in Northern VA and it was roughly $35k for the tap but I'd bet that would transfer from your tiny solution to your permanent solution. So a one time expense.
Here's an alternative idea. Construct a steel garage structure and park an RV inside as temporary living quarters. It's simply a stop gap step, before you get finances and architecture plans together.
I have 10k. So… you’re going to clear the lot yourself then and build a shed. You’ll have to make do without water or electricity but maybe you can make it work. Also don’t tell anyone you live there.
Got it. Where does the money to buy the lot come from.
Love the enthusiasm of 90% raise in 4 years.
Sounds like a decent long-term plan if you're handy and patient. Clear the land, live tiny while saving up to build. Make sure utilities are accessible and codes allow temporary living situation. Beats renting if you can swing it.
Aside from the costs of clearing the land, installing utilities (well, septic, or hooking up to public water and sewer), and then either buying or building a tiny house, have you determined how you're going to purchase the land? Most raw land loans are very high interest rates at much shorter terms than regular home loans, or else they are strictly cash deals. Does your $10K cover the purchase price and closing costs? Seems doubtful to me unless the lot is not desirable.
Buying a wooded lot for future development isn't crazy, but it requires careful planning and financial stability. Consider zoning laws, infrastructure costs, and long-term housing goals. With a solid plan, it could be a smart investment.
Even if surrounded by residential, if on septic, you may not be able to get proper ground perc. There have been lots by me left untouched because of this. Owners wait for the day they pass this test. Not sure I understand as I thought they could just dig a big hold and bring in the proper soil, but I don’t know much about septic design. Also you need plans approved by the city. Double check wetlands and wetland boundaries. Where I live you can’t build within 100feet of wetlands, not even a flower garden. This said, I’m really excited about companies building green prefab homes. It is a new wave of startup companies to try and combat housing costs. Finding land zoned with proper utilities is one of the challenges.
Let me share hard #s for you; I'm going to affix a modular home to a previously, somewhat recently (8-ish years since demo) developed lot. It can't get any easier to build than on a lot that was already built on. Level, clear land; utilities safely waiting at the curb to go back to a house; no basement to fill or dig, no environmental issues to mitigate; house footprint grandfathered in though it's now non-compliant. Literally placing a pre-built house on the same spot; I guess already having the permits in hand would make it that much easier.
Estimates I've gotten for the sitework so far have been btwn $38k & $45K. Crawlspace & site excavation work alone could be over $10K.
You wanna buy & 'just plop' a tiny home somewhere? Better be a tow behind at an RV park for the money you have saved up.
OP is playing the long game and planning their way out of a bad marriage. Alimony cannot be counted on, and they might end up with a huge disappointment….
Be sure it can be insured and in your budget. If it is in a hazard zone (fires love trees), it might be hard to get insurance. Because mortgages require insurance and they will choose one for you at a premium if you don't have it.
Very very rare to find a municipality that would allow you to live in a tiny home or a non-traditional dwelling, RV or such, in a residential area. If you are at all visible or near someone else's home they will complain. It is a solid plan, but sadly on that small of a cleared lot you will get a visit from the code enforcement office.
You may want to find out why that lot is undeveloped if everything around it is. I’ve seen a lot of people get caught in that trap. They think they are getting a deal only to find out that lot can’t be developed or will be extremely expensive to develop for some reason.
If it’s between normal houses, there’s not a snowball chance in an oven you’re putting a tiny home on that land. Everyone will fight you tooth and nail to keep you from killing their property values and the zoning protections probably wouldn’t allow it anyway.
And in the last few years, financing raw land has become much more difficult that it used to be.
You would probably have to use a personal loan and the rates are much higher and the terms are much shorter.
How insane? Pretty insane with only 10k down on 70k salary.
You need 20% down + prepare to see double digits rates on your construction loan. That 10k will only be enough to buy a land.
“Buy cheapo land and slap a tiny house there” is not as cheap as people tend to think. I recommend talking to a general contractor before you start that fun and expensive journey.
If you aren't helpless, sure. Having family assist you is a huge help!
I have 15 acres in WV. About $28k and had a house on it, brother lives there.
Cleared out house pad with 1958 JD 420 dozer old man bought for 3k. Sold it for 6k and he got to tinker for a while.
Dug footer with mini ex, $268/weekend. Dug septic tank and lines out another weekend, $268. Skid steer to dress things up is also $268/weekend.
Tank was $1400 delivered and set in hole. 45 quik 4 chambers, dist box, etc... and about 200' of 4" pipe for the drain field was like $1600.
Septic permit was $223. They let my old man use license he bought in 1984 when he built his house to install mine. Saved about 75 bucks!
Concrete for footer was $1300. Rented a Georgia buggy for $159. What a back saver! Rebar was couple hundred.
Foundation walls, $5k including block. I'm a Mason but I don't sling block, eff that shit.
That's point in at now. Have 16x24 2-story log cabin from 1840s I got for $10k going up on part of the foundation, with a 20x32 2 story main house on other part of it. Hope to connect this to a small teeehouse.
Got a woodland mills 30" sawmill for $4500 and I've cut a lot of wood.
Got 80k in student loans and basically don't want a mortgage. Hoping to be under roof before needing any money to borrow, and hopefully it all works out where we don't have to.
I'm in WV. It's great ask things considered for a DIY builder. No building codes outside of towns. No permits. No zoning BS. 40 minutes from downtown Pittsburgh.
I scrolled and I am not seeing this - you will want to also know if there are any recorded restrictions on the land as well. Sometimes there are restrictions on the size of the building and type.
Also, you will want to make sure you have access. Just because it appears to look like access, it isn't.
My Grandparents owned the lots that surrounded their house in a development for many years. When my Grandparents sold that house, they also offered the lots individually and the lots fronted a main road, etc. There are now houses on those lots so sometimes it does happen.
Not crazy at all. Before you purchase the site, contact planning/zoning and they will give you all of the relevant info about what’s needed or not. I say go for it knowing you’re in it for the long haul and it’s a slow but steady investment in your future. Good luck!
Step One: Contact your local government planning agency to determine the zoning and other development requirements, and if utilities are available. If you live in an incorporated area, it will be either a town or city government. Unincorporated, it will by the county government. Most local governments have a minimum living area requirement for new construction which will preclude placing a tiny home on a property.
As mentioned, Check your potential land and the state/county/city rules and regulations.
It is almost impossible to buy land with a loan without a house on it, you will need cash. Have cash, no problem\~
Many city/state/local ordinances will not let you park a trailer/camper/rv/tinyhome on undeveloped land. Check your local laws and city building department.
A Manufactured hope will give you a nicer living arraignment than a tiny home if your not planning on travelling with it. This is presuming you are visualizing a typical tiny home on a trailer which is small and cramped but many people enjoy this minimalist lifestyle.
Check your land to make sure it does have utilities, these will not be financeable on a 30 year mortgage if you don't already have a home on the property.
Trying to get a loan on a new build complete package is a possibility but I believe you will need a lot of cash downpayment, excellent credit and a location that can be approved.
It's a great idea if you have the cash to make it happen, I think getting a bank to finance it will be impossible.
It's a great plan, I had one very similar but found out it was an impossible dream without the cold hard cash to make it happen.
Do you have the cash?
I'd be shocked if you could put a tiny house on any "good area land". They are looked at in the same way a mobile home is and that isn't a good thing.
2nd. Even if rhe city allowed it, the cost to buy and put in infrastructure would be crazy high.
I've been a Realtor for 15 yrs ans have heard this type of idea from tons of people. Just save up to buy a home. I'd start looking into 1st Time Home Buyer programs in your state. Most states will pay for a portion of, or all of, your down payment. Some have low interest. Etc...just Google what I said.
Make sure the forested area is not a jurisdictional wetland. If it is and you chop down those trees, you could have to pay 10s of thousands of dollars in wetland mitigation
You only have $10k for a $40k lot, so you are looking at financing. Will be harder to get, most pay cash or do contract for deed.
Need to look into cost of bringing in electric, and hooking up to city water and public sewer.
Lot is too small for well and septic, as 3 acres is considered the min these days for that.
You don’t want your drain field too close to well for obvious reasons. 1/3 acre won’t work.
See what kind of homes are allowed and minimum size.
Based upon that, it will give you an idea as to whether getting it will be in budget,
Once you save more money to do the improvements or save more money for down payment on construction loan.
.3 isn’t quite the wooded paradise you think it is. It’s barely over the size of the postage stamp lots in every shitty subdivision. By the time you clear for driveway, utilities, a yard, and house seat you’ll be up your neighbors ass like every other one in that neighborhood.
$10,000 down likely does not qualify you for a land loan. Without utilities in place, a (US) bank is likely to classify this as raw land and hold it to a 65% max LTV. So you may likely need alternative financing.
Check the zoning. If there is a lot of development around this very small lot, it is quite likely not zoned to allow for a tiny house. I bought 3 acres that are in a rural residential area, and even the fairly liberal zoning category it falls in does not allow for mobile homes (which THOW would be considered) or any home under 1,000 SF.
If there is not already water and sewer in this area, 1/3 of an acre is probably not big enough to add a well and a septic and a house. The septic field has to be at least 10-20 feet away from the house, and your well should be veryyyyy far from the septic.
Most cities have minimum sq footage for home, with garages, max height etc.
The “homes” can’t be temporary in nature (foundations)
Any “temporary “home would be considered “camping” and not allowed.
I gathered that. You've got a lot of figuring and planning to do I think. Your best bet would be starting with the city/ county on if building/ water/ sewer can even be done. Then go from there. If you're completely unfamiliar with the area, you might just want to go with a small modular/ manufactured home with proper set up. Or, go to the bar. Chat with the old duffers, get an idea what will fly.. I can tell you the areas around me that you can be less than legal, but you're not around me. The old duffers know though. I can also tell you that around me, you're not going to want a RV, tiny house, or shed for most of the year. Not really saving money if you dump it all into heating or cooking.
I recommend hitting up a used mobile home dealer. Many of them can also help you find land and financing that will include the land, grading, foundation, utility hookups, etc all in the same loan. $10k down should work and their financing is a lot easier to qualify for than traditional mortgages.
**I'll answer your question by telling you a story.** I'm pretty well off, financially. My dad spent 40 years doing heavy-equipment grading and excavating and knows as much about clearing land for homes as anyone ever will. He likes doing that work and still does it occasionally on the side.
I proposed this same question to him a few years ago as an investment opportunity. Buy some land, have him clear it, grade and do all the preparations for utilities, etc. and we could have a modular home installed and sell for a profit. Understand that I would essentially have a person doing multiple tens (if not hundreds) of thousands of dollars of work for free.
He laughed. Basically said, you don't have enough money. There is a reason they are called "Developers".
Everything you think can be done is going to cost money WAY past your income level. If this land doesn't already have utilities, you could (I'm not joking) be talking about a million dollars, not to mention permitting time and red-tape you're not equipped to deal with, to have power, sewer/septic, water, etc. not to mention all the land evaluation need to determine if you can even build.
One piece of land I own has a well. There is a county water line about 100 yards from my property, down a gravel road. I called and asked the city what it would cost to tap into that line and I was told it would be north of $100K to have it done. That doesn't include hooking the line up to my existing water system, bypassing the well, etc.
What my dad suggested that ended up being a MUCH better option was to find land that had a dilapidated home, mobile home, etc. but utilities were already there. Where I could get maybe 1acre of undeveloped land for $50K, I found 1.5 acres with a mobile home for $150K, and probably saved myself hundreds of thousands of dollars in the process.
I will say this…”Don’t wait to buy Real Estate, Buy Real Estate and wait.” Quote from Will Rogers.
If you have a plan, work the plan! It sounds like you have a plan. You’ve got this! Make sure you look at every aspect of improving the lot and do research on the company’s you are thinking of hiring. It will cost more than you think. But make the plan and work it.
It’s crazy of you haven’t checked out zoning for lot, setbacks, what’s allowed, and gotten bids for running electric, hooking up to city water/well, septic/hooking up to city sewer. Plus clearing it out, plus the cost of tiny home.
What have the neighbors said about why the lot hadn’t sold?
Once you get that, talk to a lender to see what kind of loan you can get to do it with 10k in cash,
On a 1/3 or 1/2 acre “subdivision” sized lot, your neighbors will know your business no matter how wooded your lot remains.
So I’m doing this right now.
I bought a 5 acre lot and am currently prepping it to put my airstream on. The airstream will be for family use and a rental (I live in a heavily tourist area)
There’s a lot of research to do with zoning, town ordinances, etc. a lot of places don’t allow mobile or tiny homes and the like. This isn’t a problem - just find a piece of land that aligns with what you want to do. I think I had looked at 5-7 properties before buying mine.
However, 10k will be tight. The quotes I got for just a driveway and gravel pad alone are around 25k. Then that doesn’t include hooking up electricity, water or septic.
The cost of buying a tiny home is like 50-75k I think.
I don’t think this is crazy but you need more cash.
I can get more cash. I can get contracts on the side of my full-time job.
I don't mind doing that!
Last year I made a pretty insane amount of cash and had a stock that did really well (gifting it to the ex lol).
If I am as lucky as I've been the past year cash should not be an issue.
Someone suggested buying land with a dilapidated house, I think that makes a lot of sense as well. Would you mind if I ever DM'd you questions or anything like that?
Sure. I’m not super online but happy to DM.
Regarding the dilapidated house, I personally wouldn’t do this if you need a mortgage for the land. Land mortgages are a bit different than a house and any existing structures will complicate.
Plus then you have to pay to demolish a house lol. I looked at a property with a mobile home, and it was nice that the driveway and electrical were already done, but the septic had to be replaced anyway and then I’d had to get rid of a mobile home. Didn’t seem like I’d save much money.
My airstream is solar powered so I don’t really need the electrical hookup yet. I imagine you could get away with that on a tiny home also.
I say again, with added emphasis
I am not ... not ever ... paying $120k (plus) per acre.
Nuh-uh. No way. No how. Nope.
**I don't care where it is** nor what condition it's in.
This was somewhat common where I grew up, in a pretty rural area in WA. A lot of people there had season work in fishing and farming. Normally the county requires a permanent home, with a foundation, running water, septic, heat, power. But if you are building a home you can temporarily live in a trailer/rv/tiny home.
Starting with vacant land you need to plan for septic and a well if the area doesn't have city water and sewers. And a perc test before buying for the septic. You will need to make sure rain and other water doesn't damage the home, clear trees, bring in fill or removing cut. Build a driveway. Electrical hookups. It might cost $50k before you get to the foundation if you start with a forest and hire all of it out. But a lot of land is partially improved already, it can be a lot less. Also some of this you can do for cheap with some elbow grease.
A new double wide style manufactured home is around $120k on the low end. And a single wide style is about $80k on the low end. This is for moving costs, setup, and only piers with no pad or basement. Modular homes are similar but usually a little bit more, their appearance varies a lot more.
Another issue is financing. You could buy a $200k single family home with ~5% down. But financing $40k land, $40k improvements and $80k for a home will cost more upfront. Another issue is the market, if you pay $160k for all of this it doesn't mean you can sell for that much. And there are transactional costs. Definitely consider your long term plans. If you plan to move in a couple years renting is a good deal.
Is there municipal water and sewer? Electrical hookup? Drilling a well can cost 15-30k. Septic 10-20k. Electric 10-30k.
Deforestation - easy 2-10k. Excavation? Add 5k more. Oh, and you need grading? Another 5-20k.
Assuming removing trees is even allowed. Depending on how close the property is to a stream, you may be significantly restricted in removing trees.
All that assumes septic is even allowed.
My septic was $22k, lolol. I laugh or else I cry.
My new leach field alone was $18k. It failed as soon as it was turned on. Contractor ghosted all communication. Finally filed a complaint with the state health board. Contractor sent me a check for $24k to have it repaired, which cost less than $2k. I ended up with a new leach field for free and $4k in my pocket.
We love to hear it!!
When was this? We had a new septic put in for $6k in 2017.
Spring of 2022. I'm near a big city in the midwest. In my area at least, there are so few companies that will install a new system compared to companies that will repair or service existing septics. The ones who will start from scratch can charge whatever they want. I spoke to at least 30 companies before I found two that would even give me a quote. Sadly! Oh also I had to pay $2k to an environmental enigineer to design it.
Wow. We had our septic put in on a piece of land in North Carolina, well outside the city
Septics can be highly variable in cost. It depends on state and local regulations, most of which revolve around setbacks, bedroom count, and height above water table. The closer to the water table your septic will be, the higher the cost. Most counties in my area will only now allow mound systems which are extremely expensive compared to a standard tank and drain field.
If it costs 80K more I think that is still better than renting it if it's rolled into a 30 year mortgage or builder loan or whatever.
All 3 can be applied to the bigger house you build down the road. Tiny houses may be against local code / zoning. You can put down a “modular house” affordably and it’ll be a lot more usable than a tiny house.
Dont count on a septic tank being rolled into the bigger house unless you base the size of the tank and field on the future house plus the tiny home.
True
Even a singlewide trailer is significantly cheaper than a tiny home (though also not always allowed depending on zoning). I roll my eyes at tiny homes because you’re paying a fortune for less space to get away from the stigma associated with having a perfectly fine trailer.
>You can put down a “modular house” affordably Where I live that usually means mobile home and isn't permitted. OP really needs to run their plan past the local Planning Department and s3 what is already available for utilities and what is permitted on the site.
Yeah sure, but I can live in my own space now and eventually have a guest house or tiny house I can rent out and I don’t have to deal with the hassle of renting. I am open to a modular house as well.
Building a lot, clearing it, building a tiny home on it is all 100x the “hassle” that renting is. The only thing that involves is showing up to an apartment complex, signing some papers, and moving in a few days later. Unless you live in a VHCOL area/very rural it should be pretty easy to find an average apartment to tide you over for a few years.
That is a personal decision, I have owned a home and I am aware of what it entails and also been in several apartments.
Serious question but why did you ask a question if you arent gonna listen or bother hearing anyone out?
Owning a normal home is not comparable to clearing a forest and putting a tiny home on it. If you’ve never done that type of clearing, I implore you to go find a 10x10 patch of trees and see how long it takes you to completely clear it. It’s a huge hassle
To be fair, it can be a fun hassle. Chainsaws and fire aren’t boring!
Now, as a realtor, I'm not saying shit. It sounds like you may or may not want to be a little redneck to save some money. As a guy from a redneck area, have you considered putting up a shed? Much less regulation on one of those 12x20 sheds from home depot. One could always finish the inside a little, as a 'tree house for the kids". You say you have to clear the woods. How wooded is it? With just enough clearing for a shed and a car will people even know you're there? What's the city/ county like? Are you going to have a building inspector there multiple times during the project, or will he show up "sometime"? Are you allowed to camp on your own land in an RV while waiting for the construction of your home? How's the weather? Can it be comfortable living in a camper, tiny house, or shed? Is there going to be city sewer, water, or electric accessible? Can you just drive a shallow well for your own water for the time being? There's a gigantic amount of questions that you haven't asked or answered, and a lot of info not given to us here.
yeah I don’t know what I don’t know and this post is sort of helping me navigate that.
Also look into the deed restrictions of any property you are interested in. Look up the property in FEMA flood zone maps to be sure it isn't in a flood zone of any kind as you would not be able to build without approval from your local zoning in most cases. Flood zoned property also requires flood insurance in addition to regular insurance. If you want to redneck all of these issues I would still be informed as to what issues you might face with zoning and inspections in case a neighbor reports you or sues you at some future date.
Hard to redneck it on less than 1/3 acre surrounded by other homes and major road. Hard to hide a shed, Johnny on the spot, a portable water tank attached to a trailer for hauling it, and solar panels or a generator on 1/3 acre. It’s a lot easier on a few acres or more on a private gravel road. But thanks to drones, it easy to get caught by assessors wanting tax dollars now.
True, harder, but still possible, and quite possible that it's perfectly acceptable, because I know of places with less than what you've described and no one cares.
They are very lucky, or in a place that truly has no restrictions. Which is rare these days, people already bought that land up. There are more stories of people trying to redneck it on 100 acres in the middle of nowhere and getting caught thanks to neighbors and greedy assessors.
It's not really a luck thing. Some states have 30 million people competing for room. Some states have 5 million people that want to be left alone. That's a simple fact of life that many people don't seem to follow, based on other stories in this sub where sometimes a half acre goes for $500k, op said he's getting his nearly half acre for $40k, there's places you can find it for $10k, but everyone wants to be where the people are.
Why not just buy a used trailer in a park for now? It’s a good halfway point between renting and owning. You have almost enough for something close to move in ready, your lot rent will be lower than renting an apartment, and you’ll have most of the autonomy of homeownership while being able to save a lot of money for buying or building a home. You aren’t financially ready to build even the smallest of homes right now but you can be in a couple years if you make good decisions now
Financing for land and/or construction is more challenging than a traditional 30 year on an existing home.
Yep. I think you need 40%? Down payment? Inspections during phases to release more funds. Not a first time homebuyer thing
Check what the sewer situation is before buying. Septic systems in my state require minimum acreage and also offsets from lot boundaries and other septic systems and wells. I've manufactured and installed traditional and aerobic septic systems in my younger days.
The problem with this idea is that every aspect of this plan will cost far more than you expect.
So far all of my plans have been like this and I understand that.
I wish you the best! It’s just that if this was as easy as you seem to be envisioning, more people would do it. It is far more often than not financially infeasible relative to just buying a house (obviously at a premium in comparison).
This won't work. Since you say the lot is .3 acre I would assume it's a city lot. This will come with building restrictions most likely even if it's not in an HOA. It's doubtful that tiny homes or mobile homes would be allowed or camper living. What you want is something outside the city and several acres for a plan like this to work.
Please do some research at your local building and planning dept. There are several red flags that immediately jump out at me. 1- why is this property still vacant while being surrounded by developed real estate. One guess is the elevation may be low, and the surrounding lands may drain into it, causing huge problems if you want to build. 2- Lot size too small for septic and well. There are set distances they have to be apart and .3 acres probably ain't enough. Around here you have to have a minimum of 3 acres to have a septic system. 3- Check cost to hook in the existing local water/sewer could easily exceed $30k in some areas. Could be municipal or local co-op. 4- Check what that particular lot is zoned for. Zoning could greatly affect your building setbacks (how close you can build to the property line), which are important on a 1/3 acre. 15 ft residential setback, no problem. 50ft agriculture setback, big problem. Buying property is fun, but can be heartbreaking for the uninformed.
VERY good intelligent points. FIND these out. Land drainage isn't obvious unless one looks at the parcel through the seasons.
Not to mention guesthouses are very likely not going to be allowed. Plan to remove the tiny house when constructing the main house.
Depending on area, wetlands can fuck you greatly. Wetland delineation exists for a reason. About 5k+ a pop. If drainage into the area does happen, if a creek or something appears seasonly you are also going to have fun with that. Seriously wooded land in certain areas is no joke. Def glad my SO does surveys and assesses land as a permiter for a national lab.
Wetlands turned our 4 day driveway repitching project into a four month endeavor and added 7K to the project.
Damn, *minimum* **three** acres for septic!? Do you live in a really flat area?
Yep, very low land with a layer of clay 2 ft down. Most folks usually have to partially bury the tank then bring in dirt to mound up around it to get it to perc. Also, I believe its required to have 150ft separating the septic from the well around here.
Also, "tiny house" is impossible in most areas, unless it's an actual house that fully complies with code and just happens to be small. It's considered a trailer, and most civilized residential areas don't allow people living on trailers.
Exactly this. I'm assuming you're in America, where no usable land is left fallow for useless trees and a bunch of dumb birds.
Dont underestimate the cost to remove trees and grading the land.
And also zoning restrictions. Ive been running into those with my 80ac property with no neighbors. Keep in mind if any of those houses make a complaint the county has to legally investigate.
the land appears flat. And the second lot I am looking at has enough space for a home without clearing trees. Although there is 1 large tree I would like to clear because things will be laid out more nicely.
Cut down the trees and use them to make a log cabin.
This is like one of those survival sandbox games. Hunt wolves for pelts and hogs for leather. Hopefully you're near a mining node.
Could always raid the nearby dwellings for loot, then sell that to the local merchants and hire some NPCs to help
Just that easy
Even just cutting down one large tree can be a few thousand.
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Not unless you have acres and acres to harvest. Cost to bring out the equipment for a small stand isn't worth it. They won't do it if you pay them to harvest.
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Where I am you're not going to get money for your trees, but you might be able to get someone with a mobile rig who will trade removal for the wood. If you're lucky. And it's a really high value tree.
Or mill her own lumber from the lot to build.
You have 10k with 70k salary and you're asking if you should buy 40k in property... at these lending rates? No. I will give you advice if you plan to do it anyway because you kinda give off that vibe: if you DO invest 40k into a moneypit, don't invest MORE on top of the 40k, ie, don't buy a trailer/tinyhome, and don't buy a chainsaw or spend time clearing the lot. If you buy the lot, sell the timber, and stick a "for sale" sign up with a throwaway phone/email. The developers of the adjoining property have already seen the 40k list price and declined it. The PROFESSIONALS have declined it. So sure, sit on it, and see if its worth more than 40k in five years. Maybe, maybe not. The timber you sell, if its actually timber worth selling, is going to net you \~$2k an acre. So maybe $500 if you're lucky. This is a dumb idea but go for it.
This! This is the efficient market hypothesis approach. What is the reason the professionals have passed on this property because they all say that it was available and have passed? It isn't that only the OP knows this property is for sale.
Why are you so condescending and making so many assumptions ? Kinda feel like you’re projecting Professionals have different considerations than I do, and who’s to say a professional won’t be the one who eventually buys it.
They’re saying that people who do your plan for a living have already passed on the lot…so it’s worth considering why that may be. Raw acreage + RV until you can build the real house…people do this, for sure…I did it myself once, and for the right situation, I’d consider doing it again. Just make sure you get a reliable, respected builder to quote you the construction cost…so you know what you’re getting into…
Kinda feel like you’re being defensive about your poorly planned, shitty idea.
There will be something very specific in the land listing indicating the (inflated) timber value on the property. If it does not include this, then there could be little value due to age and type of timber, or it hasn’t been cruised for valuation.
They’re speaking the truth. On its very face, your income, even with what you expect alimony to be, is not enough income for what you endeavor to do with the property. If you can’t pay 40k in cash for the lot, you shouldn’t buy it. Forget about all the stuff you’ll need to do to prep the lot for a structure.
Most tinys don’t meet code
In the place I am looking they're allowed.
Ones the meet code are likely allowed.
Thank you for this insight.
TIL Magic Johnson frequents this sub
I was thinking John Madden https://forum.chicitysports.com/threads/ot-top-20-dumbest-john-madden-quotes-hilarious.32307/
Never presume. Put your feet on the ground and go find out where you can find electricity and a water source and what happens with sanitary, sewer or septic. I own a good deal of bear land and it’s not as easy as it seems sometimes and sometimes it can be cost prohibitive to do what you’re imagining depending on how far you’re going to have to bring power in from the source. As noted many places do not allow a temporary structure, trailer, or tiny home even in rural environments.
You are to be commended for trying to find a way. You can't know if plan holds up unless you know building code in area, costs for infrastructure (water/sewer/power -all of which include earth work), cost to clear land, cost to build. With inflation I guarantee you every one of those costs will escalate (how much is dependent upon inflation - look at costs over last 5 years no builder could have predicted doubling). Cost of permits, who is clearing the lot and their costs. Zoning determines what can be put on a property. And long term - desirability of region. you absolutely need to speak to a local realtor AND get a detailed list of all costs involved AND realize you are going to be paying property taxes (which will be more than what they are when you buy) on empty land. If you ever need to sell - it will not have appreciated like a home. I don't know any realtor or financial advisor to suggest this as a way to go. You have 10K now - but you MUST understand all the costs AS you own and along the way and that is even before the type of inflation you will see by time you are ready to spend the money. Also, speak to someone in the area who has done something like this recently. From all other posts and realtors posting, everyone would say if you know the HOA dues aren't going to sky rocket, either try for a low end condo or look into financing on a small home where you could rent out a room. Good luck!
Talk to a bank first where I am from they do not give mortgages on vacant land. You need a property with a house to get a mortgage.
There is likely a reason no one has developed the 0.3 acre lot in a "good" area. Based on your responses I say go for it, OP. You're due an expensive lesson.
> Salary: 70K (but in a 4 years will be making 130k+ bc Alimony) Uhh are you planning a divorce four years in advance?
I’m assuming he is paying alimony now and will be free of it in 4 years
Wait so is the $70k salary given household or individual income?
The $70k is likely their income after paying out alimony. Once they stop paying it they will keep their full income $130k.
Buying a lot in a nice area sounds nice in theory, but in practice building a home on a lot can become very expensive very quickly because there are often unforeseen obstacles in the process. The National Association of Home Builders (NAHB) cites the average cost of building a home in 2022 was almost $400,000 and costs have likely risen since. Check section II for Construction Cost Breakdown - [https://www.nahb.org/-/media/NAHB/news-and-economics/docs/housing-economics-plus/special-studies/2023/special-study-cost-of-constructing-a-home-2022-february-2023.pdf](https://www.nahb.org/-/media/NAHB/news-and-economics/docs/housing-economics-plus/special-studies/2023/special-study-cost-of-constructing-a-home-2022-february-2023.pdf) Meanwhile, living in a tiny house for a few years would be a challenge without plumbing or electricity if the area would even allow you to do so. Looking at your income and the financial risk, this may not be in your best interests.
Definitely worth looking into, but I'd be curious to know why the new, neighboring developments didn't already take it
my question as well. the "last lot", unlike the last cookie, may have a problemo...
Isn’t land usually at least 50% down if financed and usually cash for the full amount? It’s much harder to get financed for land I thought.
25% down the last time I heard of anything, which was last year for a 10 acre property.
My bank was 35% down.
Each bank can stipulate their own rules so I could believe that especially for a smaller, more rural bank. Fun fact that most lenders won’t tell you: if you are looking to buy, you can have your credit pulled from one lender, three lenders, or one hundred lenders - and it will still hit your credit the same as long as it’s all in a 45 day window. So be sure to go talk to multiple lenders. However, if you are rate shopping, you need to do it all on the same day because rates can literally change (and do change) by the hour.
Op it seems like most of this advice is don’t do it and you obviously don’t want to hear that. I’m used to hearing no and would prefer to, like you, find out for myself. So I’ll say this: Go knock on the door of the house next door and ask them if they have city water/sewer (most Zillow listings show this info. Even if the house isn’t listed for sale). Price out a tiny house. Head over to a plumbing or home building subreddit and ask the cost to hook up to city water/sewer in your area. This idea has definitely been done before. I’m sure there are people on both sides of doing vs not. All you can do is your research and make the decision for yourself. But I’d make sure I have every obstacle/expense mapped out before making the decision. Good luck with which ever route you choose!
Removing trees and setting up utilities costs a whole metric fuck ton of money and there’s a reason no one has developed the lot yet
Are mobile homes allowed on the lot or neighborhood you're interested in?
Assuming it was. If it isn't, I wouldn't mind finding another lot. I just want to know if this plan holds up. I found a comparable lot, 50K, no HOA, .5 acres (which I much prefer) and tiny homes allowed.
Are there utilities / plumbing available to tap into at the location of the $50k lot? Is the area convenient to where you live, work, socialize, etc? How much would the tiny house cost to build or put on the property when all said & done (approx)? I would hold onto my $10k and continue to rent for now. Take the $10k and put it into a HYSA / CD / something else and start saving for your first place.
The location is really good. There is. home next door so I assume that is all sorted out.
All that means is the person next door sorted out their lot. You'll still have to sort it for yours. There might be an electrical main you can hook up to but even that is $$ and water/sewer in a forest is more than likely septic and well.
'B/c I want this to be true, I won't research too deeply & will simply believe I'm right, since I don't yet know I'm wrong.' Are you an engineer, by chance?
please confirm all the details with the local water/ sewer peeps. Assume nothing! i wish you the best success in creating your home place!
Yes, fees to hook up to sewers can be hideously high, plus trenching to run underground utilties like electric and water. How much are permits?
You should never assume. And at your income, even after alimony, this really isn't the kind of project to ever make assumptions about. It could ruin you with just one mistake.
Why buy a heavy forested lot if you are just cutting everything down?
Cheaper (I think)
You're definitely being optimistic about the whole situation. What will it cost to hook up to electric? Is there water in sewer? There probably isn't so you're looking at a well and septic which is $$$$$$. You need permits for everything and you'll typically need to ensure you can even have a tiny house. I was looking into similar a few years ago and discovered it was way cheaper to just get an already improved lot with a trailer on it then start from scratch.
If it‘s only $40k and in a good area as you claim there is a reason it hasn‘t sold yet ..
I looked into a similar sort of thing last year, and there's just too many things that get in the way. - Is the land buildable? The cheap land is almost always wetland, has a lot of slope, etc. making it difficult to do even something barebones. (Especially a house.) - Local codes are always a wildcard. - Services. Roads typically have electric. Water/sewer are often not there, drilling a well can be unpredictable in cost because they have to keep going until they find water, or might not at all - this needs a land survey. Septic is probably simpler to deal with but I'm sure it has its own concerns. Internet can be a problem, you might have to live off of 5G or satellite or something if cable/fiber aren't available. Not necessarily giving up yet, but damn it's a lot of work, and will more than likely involve a litany of professionals to help. (Not cheap lol.) Good chance I just take whatever is on the market after saving up enough money, as it seems a lot easier to scrutinize an existing house. That said, it still may be possible to cut things down and live in, say, a trailer on the property. (Often subject to less restrictions than a tiny house - and most places that even allow tiny homes require a larger home.) Obviously check local regulations, etc. as these things are not technically intended for long-term living. Room/Apartment/Condo will depend on your needs. I don't think I could share a room with others as I have absolutely no tolerance of being woken up and dealing with other noises. Apartments/condos tend to be better with this. It's a lot of extra money, but livability is important - if you have good roommates though, you're in luck. If you have a stable career of remote work, you may be able to look in lower cost areas as well. Do your due diligence and make sure it's somewhere you won't lose your catalytic converter or some shit. Good luck!
A lot of people have the desire to to this and the reality is that it costs way more than you think it will cost to get the property liveable. If you don’t already know about things like running utilities, septic and wells then it tells me you have probably never lived in a rural setting and likely wouldn’t be equipped to handle the reality of living in an environment like that and trying to make it work for you. Buy a condo
Environmental regulations when it comes to "clearing land" and building on it can be absolutely brutal, and there may not even be a legal site on it to build on, especially if there's running or standing water ("wetlands") anywhere in the vicinity. Not saying that's the case here, but I've seen that so many times that I'd do a lot of homework about all local and state laws before assuming anything. Also, these laws are changing all the time--and never in the direction of being more permissive, so even something allowed now might not be in the 3, 4, 5 years when you're ready to build. Your plan might work, but there are too many risks of backfiring for you to stink your whole nest egg into it in my opinion.
.3 of an acre is a pretty small lot. I don't think you'll have the space to put any size of livable structure and then built a single family home on the lot at the same time. I think you'll have to move the tinyhouse or modular unit before you build. I checked on replacing a well with a utility hookup in Northern VA and it was roughly $35k for the tap but I'd bet that would transfer from your tiny solution to your permanent solution. So a one time expense.
Be sure it's a buildable lot. Most places have zonig requirements that have minimim lot sizes and building types.
OP check out r/homebuilding
Here's an alternative idea. Construct a steel garage structure and park an RV inside as temporary living quarters. It's simply a stop gap step, before you get finances and architecture plans together.
check covenants. there may be minimum square footage requirements.
Land comes with different loan terms
Confirm utilities, especially water and sewer. Don’t assume just because a neighbor has them..
Zoning hates tiny houses
I have 10k. So… you’re going to clear the lot yourself then and build a shed. You’ll have to make do without water or electricity but maybe you can make it work. Also don’t tell anyone you live there. Got it. Where does the money to buy the lot come from. Love the enthusiasm of 90% raise in 4 years.
How will you be making 130k+ in four years because of alimony?
You have $10k? Start saving. Seriously.
If you have to ask then you can't afford it
Do you have an easement to access the property surrounded by other properties? Step 1
What state?
Georgia
That’s my plan for retirement, but of course I’m on the other end of my career; I’ve got home equity and retirement savings to work with.
How is it zoned? What types of trees? Sounds neat with lots of options or stuck with a garden lot
Sounds like a decent long-term plan if you're handy and patient. Clear the land, live tiny while saving up to build. Make sure utilities are accessible and codes allow temporary living situation. Beats renting if you can swing it.
define 'clear the lot'. That's a vague and broad potential statement.
Also, keep in mind that this sub is more about buying and selling properties than it is about developing them for personal use.
Aside from the costs of clearing the land, installing utilities (well, septic, or hooking up to public water and sewer), and then either buying or building a tiny house, have you determined how you're going to purchase the land? Most raw land loans are very high interest rates at much shorter terms than regular home loans, or else they are strictly cash deals. Does your $10K cover the purchase price and closing costs? Seems doubtful to me unless the lot is not desirable.
Buying a wooded lot for future development isn't crazy, but it requires careful planning and financial stability. Consider zoning laws, infrastructure costs, and long-term housing goals. With a solid plan, it could be a smart investment.
Even if surrounded by residential, if on septic, you may not be able to get proper ground perc. There have been lots by me left untouched because of this. Owners wait for the day they pass this test. Not sure I understand as I thought they could just dig a big hold and bring in the proper soil, but I don’t know much about septic design. Also you need plans approved by the city. Double check wetlands and wetland boundaries. Where I live you can’t build within 100feet of wetlands, not even a flower garden. This said, I’m really excited about companies building green prefab homes. It is a new wave of startup companies to try and combat housing costs. Finding land zoned with proper utilities is one of the challenges.
Let me share hard #s for you; I'm going to affix a modular home to a previously, somewhat recently (8-ish years since demo) developed lot. It can't get any easier to build than on a lot that was already built on. Level, clear land; utilities safely waiting at the curb to go back to a house; no basement to fill or dig, no environmental issues to mitigate; house footprint grandfathered in though it's now non-compliant. Literally placing a pre-built house on the same spot; I guess already having the permits in hand would make it that much easier. Estimates I've gotten for the sitework so far have been btwn $38k & $45K. Crawlspace & site excavation work alone could be over $10K. You wanna buy & 'just plop' a tiny home somewhere? Better be a tow behind at an RV park for the money you have saved up.
Woah woah - explain the increase of 90% due to alimony in 4 years. Why 4 years?
OP is playing the long game and planning their way out of a bad marriage. Alimony cannot be counted on, and they might end up with a huge disappointment….
Based on the land approach, I bet they’ve already taken the alimony as a salable receivable to an assignment company lol.
Have you considered building cabins for $20k and selling them for $35k?
Gee why didn't anyone else think of that
What is your goal? Why do you want to buy the land?
Be sure it can be insured and in your budget. If it is in a hazard zone (fires love trees), it might be hard to get insurance. Because mortgages require insurance and they will choose one for you at a premium if you don't have it.
Very very rare to find a municipality that would allow you to live in a tiny home or a non-traditional dwelling, RV or such, in a residential area. If you are at all visible or near someone else's home they will complain. It is a solid plan, but sadly on that small of a cleared lot you will get a visit from the code enforcement office.
You may want to find out why that lot is undeveloped if everything around it is. I’ve seen a lot of people get caught in that trap. They think they are getting a deal only to find out that lot can’t be developed or will be extremely expensive to develop for some reason.
If it’s between normal houses, there’s not a snowball chance in an oven you’re putting a tiny home on that land. Everyone will fight you tooth and nail to keep you from killing their property values and the zoning protections probably wouldn’t allow it anyway. And in the last few years, financing raw land has become much more difficult that it used to be. You would probably have to use a personal loan and the rates are much higher and the terms are much shorter.
How insane? Pretty insane with only 10k down on 70k salary. You need 20% down + prepare to see double digits rates on your construction loan. That 10k will only be enough to buy a land. “Buy cheapo land and slap a tiny house there” is not as cheap as people tend to think. I recommend talking to a general contractor before you start that fun and expensive journey.
Check the zoning first.
If you aren't helpless, sure. Having family assist you is a huge help! I have 15 acres in WV. About $28k and had a house on it, brother lives there. Cleared out house pad with 1958 JD 420 dozer old man bought for 3k. Sold it for 6k and he got to tinker for a while. Dug footer with mini ex, $268/weekend. Dug septic tank and lines out another weekend, $268. Skid steer to dress things up is also $268/weekend. Tank was $1400 delivered and set in hole. 45 quik 4 chambers, dist box, etc... and about 200' of 4" pipe for the drain field was like $1600. Septic permit was $223. They let my old man use license he bought in 1984 when he built his house to install mine. Saved about 75 bucks! Concrete for footer was $1300. Rented a Georgia buggy for $159. What a back saver! Rebar was couple hundred. Foundation walls, $5k including block. I'm a Mason but I don't sling block, eff that shit. That's point in at now. Have 16x24 2-story log cabin from 1840s I got for $10k going up on part of the foundation, with a 20x32 2 story main house on other part of it. Hope to connect this to a small teeehouse. Got a woodland mills 30" sawmill for $4500 and I've cut a lot of wood. Got 80k in student loans and basically don't want a mortgage. Hoping to be under roof before needing any money to borrow, and hopefully it all works out where we don't have to. I'm in WV. It's great ask things considered for a DIY builder. No building codes outside of towns. No permits. No zoning BS. 40 minutes from downtown Pittsburgh.
Sounds like an adventurous plan, but make sure you do your due diligence on zoning laws and building regulations.
I scrolled and I am not seeing this - you will want to also know if there are any recorded restrictions on the land as well. Sometimes there are restrictions on the size of the building and type. Also, you will want to make sure you have access. Just because it appears to look like access, it isn't. My Grandparents owned the lots that surrounded their house in a development for many years. When my Grandparents sold that house, they also offered the lots individually and the lots fronted a main road, etc. There are now houses on those lots so sometimes it does happen.
Not crazy at all. Before you purchase the site, contact planning/zoning and they will give you all of the relevant info about what’s needed or not. I say go for it knowing you’re in it for the long haul and it’s a slow but steady investment in your future. Good luck!
Step One: Contact your local government planning agency to determine the zoning and other development requirements, and if utilities are available. If you live in an incorporated area, it will be either a town or city government. Unincorporated, it will by the county government. Most local governments have a minimum living area requirement for new construction which will preclude placing a tiny home on a property.
As mentioned, Check your potential land and the state/county/city rules and regulations. It is almost impossible to buy land with a loan without a house on it, you will need cash. Have cash, no problem\~ Many city/state/local ordinances will not let you park a trailer/camper/rv/tinyhome on undeveloped land. Check your local laws and city building department. A Manufactured hope will give you a nicer living arraignment than a tiny home if your not planning on travelling with it. This is presuming you are visualizing a typical tiny home on a trailer which is small and cramped but many people enjoy this minimalist lifestyle. Check your land to make sure it does have utilities, these will not be financeable on a 30 year mortgage if you don't already have a home on the property. Trying to get a loan on a new build complete package is a possibility but I believe you will need a lot of cash downpayment, excellent credit and a location that can be approved. It's a great idea if you have the cash to make it happen, I think getting a bank to finance it will be impossible. It's a great plan, I had one very similar but found out it was an impossible dream without the cold hard cash to make it happen. Do you have the cash?
I'd be shocked if you could put a tiny house on any "good area land". They are looked at in the same way a mobile home is and that isn't a good thing. 2nd. Even if rhe city allowed it, the cost to buy and put in infrastructure would be crazy high. I've been a Realtor for 15 yrs ans have heard this type of idea from tons of people. Just save up to buy a home. I'd start looking into 1st Time Home Buyer programs in your state. Most states will pay for a portion of, or all of, your down payment. Some have low interest. Etc...just Google what I said.
Just guessing but in this situation you'll be 100k deep before you are even ready to build
I don't know where you live but research the zoning.
Make sure the forested area is not a jurisdictional wetland. If it is and you chop down those trees, you could have to pay 10s of thousands of dollars in wetland mitigation
You only have $10k for a $40k lot, so you are looking at financing. Will be harder to get, most pay cash or do contract for deed. Need to look into cost of bringing in electric, and hooking up to city water and public sewer. Lot is too small for well and septic, as 3 acres is considered the min these days for that. You don’t want your drain field too close to well for obvious reasons. 1/3 acre won’t work. See what kind of homes are allowed and minimum size. Based upon that, it will give you an idea as to whether getting it will be in budget, Once you save more money to do the improvements or save more money for down payment on construction loan.
Check to make sure you have enough class V road frontage to develop/build.
.3 isn’t quite the wooded paradise you think it is. It’s barely over the size of the postage stamp lots in every shitty subdivision. By the time you clear for driveway, utilities, a yard, and house seat you’ll be up your neighbors ass like every other one in that neighborhood.
That’s a pretty small lot to be putting multiple dwellings on need to check codes for that too!
$10,000 down likely does not qualify you for a land loan. Without utilities in place, a (US) bank is likely to classify this as raw land and hold it to a 65% max LTV. So you may likely need alternative financing. Check the zoning. If there is a lot of development around this very small lot, it is quite likely not zoned to allow for a tiny house. I bought 3 acres that are in a rural residential area, and even the fairly liberal zoning category it falls in does not allow for mobile homes (which THOW would be considered) or any home under 1,000 SF.
Zoning is your biggest hurdle; then cost. Your utilities, including septic or sewer tie-in, would have to be engineered first your end-goal.
Someone is VERY clueless
If there is not already water and sewer in this area, 1/3 of an acre is probably not big enough to add a well and a septic and a house. The septic field has to be at least 10-20 feet away from the house, and your well should be veryyyyy far from the septic.
Most cities have minimum sq footage for home, with garages, max height etc. The “homes” can’t be temporary in nature (foundations) Any “temporary “home would be considered “camping” and not allowed.
I gathered that. You've got a lot of figuring and planning to do I think. Your best bet would be starting with the city/ county on if building/ water/ sewer can even be done. Then go from there. If you're completely unfamiliar with the area, you might just want to go with a small modular/ manufactured home with proper set up. Or, go to the bar. Chat with the old duffers, get an idea what will fly.. I can tell you the areas around me that you can be less than legal, but you're not around me. The old duffers know though. I can also tell you that around me, you're not going to want a RV, tiny house, or shed for most of the year. Not really saving money if you dump it all into heating or cooking.
I recommend hitting up a used mobile home dealer. Many of them can also help you find land and financing that will include the land, grading, foundation, utility hookups, etc all in the same loan. $10k down should work and their financing is a lot easier to qualify for than traditional mortgages.
That is super helpful thank you.
**I'll answer your question by telling you a story.** I'm pretty well off, financially. My dad spent 40 years doing heavy-equipment grading and excavating and knows as much about clearing land for homes as anyone ever will. He likes doing that work and still does it occasionally on the side. I proposed this same question to him a few years ago as an investment opportunity. Buy some land, have him clear it, grade and do all the preparations for utilities, etc. and we could have a modular home installed and sell for a profit. Understand that I would essentially have a person doing multiple tens (if not hundreds) of thousands of dollars of work for free. He laughed. Basically said, you don't have enough money. There is a reason they are called "Developers". Everything you think can be done is going to cost money WAY past your income level. If this land doesn't already have utilities, you could (I'm not joking) be talking about a million dollars, not to mention permitting time and red-tape you're not equipped to deal with, to have power, sewer/septic, water, etc. not to mention all the land evaluation need to determine if you can even build. One piece of land I own has a well. There is a county water line about 100 yards from my property, down a gravel road. I called and asked the city what it would cost to tap into that line and I was told it would be north of $100K to have it done. That doesn't include hooking the line up to my existing water system, bypassing the well, etc. What my dad suggested that ended up being a MUCH better option was to find land that had a dilapidated home, mobile home, etc. but utilities were already there. Where I could get maybe 1acre of undeveloped land for $50K, I found 1.5 acres with a mobile home for $150K, and probably saved myself hundreds of thousands of dollars in the process.
That is a really really great suggestion thank you.
Need to check the zoning on the lot.
I will say this…”Don’t wait to buy Real Estate, Buy Real Estate and wait.” Quote from Will Rogers. If you have a plan, work the plan! It sounds like you have a plan. You’ve got this! Make sure you look at every aspect of improving the lot and do research on the company’s you are thinking of hiring. It will cost more than you think. But make the plan and work it.
It’s crazy of you haven’t checked out zoning for lot, setbacks, what’s allowed, and gotten bids for running electric, hooking up to city water/well, septic/hooking up to city sewer. Plus clearing it out, plus the cost of tiny home. What have the neighbors said about why the lot hadn’t sold? Once you get that, talk to a lender to see what kind of loan you can get to do it with 10k in cash, On a 1/3 or 1/2 acre “subdivision” sized lot, your neighbors will know your business no matter how wooded your lot remains.
So I’m doing this right now. I bought a 5 acre lot and am currently prepping it to put my airstream on. The airstream will be for family use and a rental (I live in a heavily tourist area) There’s a lot of research to do with zoning, town ordinances, etc. a lot of places don’t allow mobile or tiny homes and the like. This isn’t a problem - just find a piece of land that aligns with what you want to do. I think I had looked at 5-7 properties before buying mine. However, 10k will be tight. The quotes I got for just a driveway and gravel pad alone are around 25k. Then that doesn’t include hooking up electricity, water or septic. The cost of buying a tiny home is like 50-75k I think. I don’t think this is crazy but you need more cash.
I can get more cash. I can get contracts on the side of my full-time job. I don't mind doing that! Last year I made a pretty insane amount of cash and had a stock that did really well (gifting it to the ex lol). If I am as lucky as I've been the past year cash should not be an issue. Someone suggested buying land with a dilapidated house, I think that makes a lot of sense as well. Would you mind if I ever DM'd you questions or anything like that?
Sure. I’m not super online but happy to DM. Regarding the dilapidated house, I personally wouldn’t do this if you need a mortgage for the land. Land mortgages are a bit different than a house and any existing structures will complicate. Plus then you have to pay to demolish a house lol. I looked at a property with a mobile home, and it was nice that the driveway and electrical were already done, but the septic had to be replaced anyway and then I’d had to get rid of a mobile home. Didn’t seem like I’d save much money. My airstream is solar powered so I don’t really need the electrical hookup yet. I imagine you could get away with that on a tiny home also.
If the city grows, the low will jump 10 times in price.
I am not ... not ever ... paying $120k (plus) per acre. Nuh-uh. No way. No how. Nope. I don't care where it is nor what condition it's in.
Don't ever move to a HCOL area! 120k+ for an acre somewhere developed would be a steal.
I say again, with added emphasis I am not ... not ever ... paying $120k (plus) per acre. Nuh-uh. No way. No how. Nope. **I don't care where it is** nor what condition it's in.
This was somewhat common where I grew up, in a pretty rural area in WA. A lot of people there had season work in fishing and farming. Normally the county requires a permanent home, with a foundation, running water, septic, heat, power. But if you are building a home you can temporarily live in a trailer/rv/tiny home. Starting with vacant land you need to plan for septic and a well if the area doesn't have city water and sewers. And a perc test before buying for the septic. You will need to make sure rain and other water doesn't damage the home, clear trees, bring in fill or removing cut. Build a driveway. Electrical hookups. It might cost $50k before you get to the foundation if you start with a forest and hire all of it out. But a lot of land is partially improved already, it can be a lot less. Also some of this you can do for cheap with some elbow grease. A new double wide style manufactured home is around $120k on the low end. And a single wide style is about $80k on the low end. This is for moving costs, setup, and only piers with no pad or basement. Modular homes are similar but usually a little bit more, their appearance varies a lot more. Another issue is financing. You could buy a $200k single family home with ~5% down. But financing $40k land, $40k improvements and $80k for a home will cost more upfront. Another issue is the market, if you pay $160k for all of this it doesn't mean you can sell for that much. And there are transactional costs. Definitely consider your long term plans. If you plan to move in a couple years renting is a good deal.
For $40K!?! Not at all.