Is buying and maintaining a parking lot a viable investment?
The story usually hits a snag when the "boring" parts of ownership kick in. buying a parking lot
: Beyond property taxes, you have to account for lighting, snow removal, security cameras, and the constant battle against non-payers. Is buying and maintaining a parking lot a viable investment
The real "hero's journey" in parking lot ownership isn't the daily quarters; it's the .Many savvy investors buy parking lots as a "land bank." They operate the lot to cover the taxes and make a little profit while waiting for the neighborhood to catch up. The end goal? Selling that "valueless" hunk of asphalt to a developer for millions. In Chicago, a developer once paid $9 million for a simple lot because they saw it as a prime spot for a future condominium. The real "hero's journey" in parking lot ownership
In cities with high demand and low on-street availability, individual spaces can sometimes rent for as much as a one-bedroom apartment. You set up an automated payment system or a simple mobile app, and suddenly, you have a business that essentially runs itself while you collect a steady 6-8% return on investment. The Reality: The "Headache" Phase
: In some areas, neighbors might have ancient "rights-of-way" to park on your land, or local laws might require you to provide proof of parking for nearby residents, complicating your ability to charge market rates. The Twist: The "Exit" Strategy