I want to enter the realestate market as soon as I can. There is a couple area in the oregon town which I grew up in that I consider to be prime places to live. The problem is that everone else has the same ideas, thus houses on these lots tend to go for a lot of money. However, I was looking around this area and noticed that there were quite a few unimporved lots, that I could acutally buy. I would then have to build my own house and I would not even be able to complete a hose right away.

There is another house in this area that I khow of, it's on about 1.5 acres close to downtown. campus and has been a rental for about 15 years. While the house is not trashed, it needs a lot of work...probabily a significant amount before it would qualify for bank financing. The house is on a great lot, great location and it has great bones. I don't mind getting my hands dirty.

I think that my first choice would be the fixer. With either deal, I was thinking about trying to work out a land sales contract with the owner. Does anyone know the best method to handle this. Would the cost savings be a mutt point due to the necceisty of getting a lawyer to make sure everything was okay? Other details.

I'll let JD or someone else talk about the legal side of this.

But some general advice, based on a combined 30+ years of service on local planning and zoning boards.

First thing I suggest you do for any piece of property you consider buying is to stroll down to the municipal tax or zoning office and inquire about the size of the lot. Is it buildable in the zone where it's located? (lot area, setbacks, etc. etc.) If it does not conform, what are the chances of getting a variance to build ( say on an undersized lot) Is there public sewer and water? If not, can you get a septic permit and/or drill a well? Most importantly, what uses are permitted in this zone in the immediate vicinity of the lots in question. And what are the zone boundaries? What are permitted uses in the adjacent general areas surrounding the neighborhood. Forewarned is forearmed! Do your homework.

As for the college house, well, depending on your age and tolerance level, you might love or hate living so close to a campus. Spend a few hundred dollars and have an inspection done to highlight problems that might not be apparent to you. The choice is yours.

Good luck.

Get local professional advice.
http://www.ccim.com/

Get some local professional advice. If you were in my city I could point you in the right direction, but RE is such a local thing. I don't want to give you bad advice.

If you are a first time home buyer in the state of CT we have a wonderfull mortgage program called CHFA. Its loan terms are very liberal. Does your state have such a program? Bet it does.

If your credit is an issue, a lease to buy may work perfectly. The key with a lease to buy, is when you figure out the purchase price. IE when you enter the lease to buy agreement or when its over or about to end. Land contracts can be many things, make sure to consult a RE attorney before getting into one.

Find a good local agent, mortgage broker, and attorney who can help you with this.

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