I am new to this board, so pls be gentle...
I have a vacant lot on a nice corner in surburban Chicago that I am trying to decide what to do with. I could probably sell the lot for about $40,000 outright. I will have about $50,000 from the sale of another residence that I would like to invest somewhere.
I have some home repair skills, but not rough carpentry. Is it very likely I can make a 10 to 15% return on my money if I sub contract building a semi finished home on the lot ? I foresee problems because of my inexperience perhaps eating up any pricing advantage of home+lot versus lot only sale.
Has anybody done a DIY home strictly for resale and made money like this ? I do not anticipate rising values bailing me out of this if I don't keep it under budget, due to circumstances beyond my control/ability.
Will banks or mortgage brokers be willing to finance at reasonable rates, so interest & closing costs don't eat up my capital ?
What experiences, both good & bad have you had with this sort of thing ?
Pinball Bob