A 7 acre parcel next to one of my properties came up for sale recently and im considering buying it. I am concerned about the market and I know I won't qualify for a traditional mortgage because I make no money on paper. For a little back story the parcel is connected to a building I own. The building is a old jail built in the late 1800's. I really like the history of the building and want to do something with it that others can enjoy. Im thinking a BNB. The jail needs a good bit of work but it is rented to a older couple that lives there full time currently. The idea with buying the parcel would add some walking trails and a place to have a fire or other outdoor activities since the lot the jail sits on is pretty small. The jail looks over the Mississippi River and does have a nice view, however the parcel goes up hill and at the top has a fantastic view for miles right on a bend on the Mississippi River. There is a road that separates the jail from the river so its not actually waterfront. The parcel is listed at 75k. I have approached the seller and they are willing to do a land contract with a 2 year term. I would give them 15k upfront and a monthly payment for 2 years. At the end of the 2 year term I would owe the balance. This makes me a little nervous with interest rates increasing i am not sure what the market will look like in 2 years. I also have many obligations of my time and won't get to actually doing this conversion a BNB for a few years. Its a long term play for me. Im just looking to see what a group of unbiased individuals think of this idea. I don't owe anything on the jail I bought it off market for cash a few years back. In my experience with the area I live in its pretty rare to have a seller agree to any form of land contract on vacant land and this it the only parcel that connects to the jail so it really could be a one time shot and doing this. What would you do if you were facing the same decisions? I have attached a few pictures of the views from the lot as well as the rough property lines. You can not see the jail in the aireal shot but it would be on the short side of the 90 degree angle. The hill is walkable but would need some work to make it safe for the average person to go up there comfortably.
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