Playing Real Estate Monopoly in One of America’s Fastest-Growing Cities

Hello, financial freedom enthusiasts!

As part of our journey towards financial independence and early retirement (FIRE), we recently opened a self-directed IRA (SDIRA) to dive into real estate investing. I’m excited to share our first SDIRA purchase: a 1/4-acre vacant lot zoned for two-family construction in the booming city of North Port, FL.

Why This Lot Caught Our Eye

1. Multi-Family Zoning: A Rare Find

In North Port, most lots are zoned for single-family homes or large apartment buildings. Our lot, however, is one of the few zoned for two-family homes (RTF). These are hard to come by, making our find even more valuable.

2. Prime Location

While the street itself is still undeveloped, the lot’s proximity to Port Charlotte is a game-changer. Port Charlotte offers easy access to shops, entertainment, and other amenities. Both North Port and Port Charlotte are experiencing rapid growth, with Charlotte County ranking among the top regions in the country for population growth.

3. Growth Potential

North Port’s population has skyrocketed from about 12,000 in 1990 to over 78,000 today. Projections suggest it will surpass 100,000 by 2030. This growth means increased demand for housing, potentially boosting our investment’s value.

The Purchase Process: An Unexpected Twist

We almost missed out on this opportunity. The lot was initially listed as pending, but the original buyer backed out due to concerns about a potential scam. The foreign sellers and overseas closing process raised red flags for them.

Understanding these concerns, we took precautions:

1. Our realtor recognized the seller’s agent.
2. We contacted the title company directly.
3. We considered the built-in protections of the closing process and title insurance.

Confident in the legitimacy of the sale, we made a $22,000 cash offer, just $1,000 below asking price. The sellers accepted!

Why We’re Excited About This Investment

1. Portfolio Diversification: It adds a tangible asset to our mix of stocks and bonds.
2. Future Rental Potential: We can build a two-family home for rental income.
3. Generational Wealth: It’s an asset we can pass down to our children.
4. Growth Opportunity: North Port’s rapid expansion suggests potential for significant appreciation.

Final Thoughts

This purchase feels like a real-life game of Monopoly. We’ve acquired a valuable property in a growing market, setting the stage for future development and income potential. It’s an exciting step in our FIRE journey, and we’re looking forward to seeing how this investment plays out in the years to come.

What about you? How are you diversifying your investment portfolio on your path to financial independence? Have you considered real estate as part of your FIRE strategy? Share your thoughts and experiences in the comments below!