Real Estate investment has long been a proven strategy for generating additional income, diversifying portfolios, and accumulating wealth. However, for many of us, the financial resources required to invest in a rental property or secondary home are not readily available.
On the other hand, starting with land presents a viable option due to its lower investment costs. Surprisingly, land can also yield rental income without any structures built on it! So, why consider land in the first place?
It's resistant to inflation
It's a cost-effective investment to maintain
No maintenance costs
Where can you discover affordable starter land options without exceeding your budget? These are the top 5 Hot Spots for Cheap Land for Sale
1. Arizona - At the time of this article, Arizona's growth rate exceeds the national average.This make sense because of the nice hot climate and beautiful desert scenery.We have found some of our best land here and love this state as we see a good investment in it. Most of this great priced land with nice population growth is by Show Low. Strangely this isn't the Arizona you may think of. Show Low is at a higher elevation with nice green landscape and pine trees, also some desert plains. Do a broad search around Show Low though, you want to get out of the main town and expand your options to around 200 miles from town. You will find some nice large acreage properties and new tracts for a great price. On the lower end, you can find land here around the $1000 to $5000 range
2. California - Although California is one of the most expensive states for real estate, it is also a large state and most live within 200 miles inland from the coast.This opens up opportunity for desert areas and even forest areas. Search around the palm springs area within a 100 miles or so.Areas like 29 Palms or Sultan Sea can have some great deals.For land in the forest, we have seen some great large acreage parcels in Modoc for great prices as well.On the lower end, you can find land here around the $3,000 to $5,000 range.
3. Arkansas - In Arkansas, there is a lot of remote land with tiny towns all over the place.Most of these towns are focused on farming, so these small town residential parcels come cheap as the population hasn't caught up.... YET!.With population growth and people looking to get out of the city, these may do well in the future.There are many spots here for good prices, so look for remote towns around the Mississippi river or even out further.On the lower end, you can find land here around the $700 to $3,000 range.
Oregon - There isn't many areas for good deals in Oregon, But there are some if you search...Areas around Klamath still have some great deals, most of these are over an acre too.This place is growing in cost because so many land investors are buying up the area.But for the price and what you get, it is worth a search.On the lower end, you can find land here around the $4,000 to $10,000 range.
New Mexico - This area seems to be growing as well, some major companies have made investments into the state...companies like Facebook.
You can find some nice land near the Socorro area, a lot of them have roads and power, yet they are still remote from the town.
On the lower end, you can find land here around the $4,000 to $8,000 range.
Colorado - It's a beautiful place, if you like a nice chill climate, relaxed politics and willing to live in remote peaceful areas, this is a good option.Costilla County seems to have the best land for cheap prices. With hunting, fishing and mountain climbing, we have found this area to be highly desirable.On the lower end, you can find land here around the $4,000 to $10,000 range.
How to Save a lot of Money When Buying!
When buying land, you may see a low ticket price.....
BUT you end up finding out you need an extra $2,000 just to get the deal done.
This can heavily impact the cost of your investment, thus making your margins not so attractive.
Why?....
Real estate agents and closing costs are the number one issue.
An agent will always have a minimum, they don't care how cheap the price is, they do the work and need to get paid.
The thing is, you can avoid them quite easily if you find a FSBO (for sale by owner).
If neither party knows how to close such a deal, call First American Title or a Real Estate Attorney in the area.
They can handle a title search and writing up the deed for cheap, you can avoid the title insurance as it really only covers what you pay for the land. However, if you build, it's best to get it at some point.
With cheap priced land, it doesn't always make sense to add in this cost, they normally push it because they sell these things as a package deal.
It may take a good four to five places to find one that will do it for a good price. You should be able to close the deal for under $400 this way.
There are also several websites to handle escrow so no one steals your money.
Another option are land selling websites like ours; LandZero.
Specializing in land, companies like ours will use options such as bulk buying power to get discounts.
This means, we will often buy 15+ lots in an area or from our partnered investors or land owners for a savings. If we didn't buy all of them, they would only consider selling these lots at the going rate.
With this method, we can pass on the savings to customers and still keep our company afloat.Given we buy the land in full, our company can also offer financing, essentially owner financing which is not common with land.There are no banks that will give you such an offer like this on land. This is a valuable option if you don't want to use all the money to buy at one time.
The major savings with companies like ours is bypassing the agents because we know how to close real estate.
We use the same closing methods as agents and do not add in the fees for that service to customers. With this service, you don't have to bother to find a closing service or escrow company.
This can save you $400 to $2000 dollars depending on the land and area.
We hope this article gets you going in the right direction and thanks for reading!
What are the best states for cheap land?
You can find some of the lowest cost land in Arizona, California, Arkansas, Oregon and New Mexico. Some land in these states go for under $1000 dollars. While this land is cheap, most of the land is found in remote areas of the states, while some are still next to smaller towns and attractions.
Can you buy land for under $1000 dollars?
Yes, you can find land in selected states for under $1000. Some of the best methods of finding land under $1000 are land selling websites like Land Zero, Zillow, Craigslist, tax sales, auctions, bulk buying and asking a land owner if they want to sell their property. Closing without a real estate agent is a large savings on the cost of the land.
What type of land can you get for $1000 dollars?
You can actually find good land for under $1000 dollars, but it will most likely be further away from the cities and possibly off the grid. Most land for around $1000 dollars is found in the desert or heavy forested areas in remote settings.
