About a year ago I stumbled upon a deal whereas I ended up paying $4,000 for an 8 acre tract of land in a wooded, country neighborhood. I estimate that in today's market the property would be worth somewhere around $16,000 to $20,000. Our plan was to hang on to it until the market turned around and then sell it. Now we're re-thinking everything and wonder what would be best. Here's what we're thinking and I'd like to get some advice:
We split the land into two 4 acre lots or 3, 2.5+ acre lots. We then owner finance each piece of property, selling it for $5,000 down at 8-10% for 30 years. We take the down payments and either reinvest in land and do the same, and/or tie up some houses and flip them to other investors. Our thinking is that we would build long-term income with a strong potential for reclaiming the land if the buyer defaults on the loan in the 30 year span of time. The problem is that we've had absolutely no interested buyers. Are we on the wrong track totally?