A 1-Acre Lot In California Listed For $5,000 Caught 1 Person's Eye. 'Am I Missing Something? Why Is This So Cheap?'

A Reddit post in the r/RealEstateAdvice community recently drew attention for a surprising listing—a 1-acre plot of land in California priced at just $5,000. The original poster asked, "Am I missing something? Why is this 1-acre of land in California only $5,000?"

On the surface, it looked like a steal. But commenters quickly pointed out that this kind of deal is far from rare, and not nearly as good as it seems.

Location, Location… Isolation

Don't Miss:

• This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100.
• Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Last Chance to get 4,000 of its pre-IPO shares for just $0.26/share!

The land in question is in or near Alturas, a remote town in the northeast corner of California. One commenter summed it up: "It's because it is Alturas. Middle of f***ing nowhere."

The town, with a population of just over 2,657, is several hours from the nearest major cities. Another user added, "I have lived in California my whole life and I have no idea where Alturas is."

Utilities Not Included

Many pointed to the lack of basic infrastructure as a major issue. "No water, sewer or electric hookups would be my 1st guess," one person said. Another added, "While the land is cheap, it costs money to drill a well and put in a septic tank. Then you have to deal with solar vs. getting power to the lot."

According to another commenter, drilling a well in California could cost up to $200,000, depending on depth and location. In contrast, similar work in the Midwest might run $20,000.

Trending: BlackRock is calling 2025 the year of alternative assets. One firm from NYC has quietly built a group of 60,000+ investors who have all joined in on an alt asset class previously exclusive to billionaires like Bezos and Gates.

Zoning and Building Restrictions

Even though a listing might say the land is zoned for building, that doesn't mean construction is easy or even possible. As one Redditor explained, "Just because it's listed as somewhere you can build, doesn't mean you can." Some counties only allow building if the total acreage exceeds 10 acres. Others have ordinances against camping or even parking an RV on the land.

"No tents, no campers, and no loitering," someone wrote. "Pretty much just five grand worth of useless dirt."

The California Pines Factor

Multiple users mentioned the area's history of failed developments, particularly the California Pines subdivision. These projects marketed land to out-of-state buyers with promises of future value. But many lots remain undeveloped decades later. "The land company sells and resells these lots over and over again. Rinse and repeat," a former Alturas resident said.

In some cases, buyers also inherit homeowner association fees for roads or empty amenities. One joked, "You're basically buying the land to fund future building it out, but very few will ever move there."

See Also: This platform is reshaping how you invest in private companies — and you can be a part of it for $0.18 per share.

Hidden Costs and Liabilities

Past infrastructure, buyers might face other obligations. "Owners carry liability for everything that happens on their land," one commenter noted. If someone dumps garbage, it's your job to remove it.

Insurance is another hurdle. "No home owners insurance available due to fire risk," someone warned. Others said you'd need to build out of pocket, with no financing available.

So what’s the takeaway here? $5,000 lot may not be a scam, but it definitely comes with strings attached.

Arrived Achieved A Total Return of 34.7% On Their Biggest Sale Yet — Diversify Your Monthly Income Stream With Fractional Real Estate

Arrived allows individuals to invest in shares of rental properties for as little as $100, providing the potential for monthly rental income and long-term appreciation without the hassles of being a landlord. With over $1 million in dividends paid out last quarter and a growing selection of properties across various markets, Arrived offers an attractive alternative for investors seeking to build a diversified real estate portfolio. 

In October 2024, Arrived sold The Centennial, achieving a total return of 34.7% (11.2% average annual returns) for investors. Arrived aims to continue delivering similar value across our portfolio through careful market selection, attentive property management, and thoughtful timing in sales.

Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener features the latest offerings.