01-05-2007, 10:08 AM
| | Investing in future eminent domain area?
I have just learned through a conversation with city hall that a portion of my
target neighborhood is going to be involved in an eminent domain buyout at some
point and it will be rezoned as light industrial. They cannot pin down a time. It
could be next year, it could be 10 years out. The area is low income with average
sale values at around 50k.
I am looking to make my first purchase and there is a 2/1/5 valued at around
60-65k that I can buy at $52k that is currently rented Section 8 that will cash
flow around $125 right off the bat. I don't have much working capital and my
initial thought for this property was to hold and rent it until the market looked
better. This property is in the buyout area.