In the next year, looking to buy a vacant lot, build a house, and sell our current house. But unclear about financing and process (KS).

My wife and I are both about to graduate from grad school. We bought our first house just before we got married for $133k (now appraised at $143k). We used monetary gifts from our wedding as down payment and verified expected teaching income statements from our school. We were lucky getting the house; we’ve made all 30 monthly payments so far just fine, but doing so with both of us in grad school has been lean, leaving us currently with less than $3k in our bank account. The good news for us is that my wife already has accepted two job offers; the first is only a year long and starts this fall. It will put our combined pre-tax income at ~$100k/yr. By fall 2019, it jumps to ~$160k with her second job. We want to move closer to our work (about an hour away, still in KS), and we know the exact neighborhood we want to live in. It’s in a small area that has historic homes, but the area around it doesn’t have a great perception, which keeps home prices low. We found a vacant lot there owned by a realtor that’s only been on the market for a few months. It’s about $15k, which is 7x the appraisal for the vacant land, and 3x what neighbors there have told me is reasonable. Our goal would be to buy the land now, and build on it later, either this fall or early next year. I’m an architect, so I can do all the drawings myself (or can hire a friend to finish them), and I know the planning department well enough to learn about any easement issues. From what I’ve heard from neighbors, they think the shape of the lot and the easements are too restrictive to build a typical home, something I’m not worried about. My question is this: if we are 99% sure that this is the lot we want to buy, but don’t have a ton of cash to spend now, though we will in 6-8 months, what would be the best option to move forward in getting that lot now, with a plan for financing the construction of a new home on that lot within the next 1-2 years? We’re willing to sell our house and live with family nearby in the meantime as well. What I’m struggling with is the sequencing that this would all require. Appreciate any advice! submitted by /u/drarch [link] [comments]