I have an opportunity to buy a plot of land for about 100k in a locaton that is about to be developed. It would likely double in value in a few years once the area is built up so it seems like a great opportunity.
The problem is that for me 100k is not an amount I can afford to lose. The risk of a total loss seems unlikely, but it's always there.(city decides to build a garbage dump next door or something). So while it may make me rich, it's a bit all or nothing and could land me in debt for many years to come.
I passed up on similar offers in the past, and see those plots going for 4-10 times their value for which I am now kicking myself for not being more bold and investing in a safe single digit return investment instead.
My stance would depend on your NW, current income, and priorities.
What you're describing could earn you a ton of money, but it's a purely speculative play and the risks - lack of liquidity, no guaranteed return, multi-year holding likely required - would suggest upper limits based on those factors.
My town is full of opportunities like this, and is currently a fast-growing city where appreciation is likely and loss is unlikely... but I'd never put all my eggs in one basket. My biggest chunk of real estate equity is less than 10% of my NW, and it's an income property with positive cash flow. Later on when I have more investments and more passive income, I might consider such a play, and even a more aggressive allocation (15-20%) if I'd done my due diligence on the likely gain and the potential risks. But also, I'd only do this if I were still earning high income and willing to offset any potential loss by working longer. Currently I'm very happy in my job but I re-evaluate periodically to avoid committing myself for longer than this state of affairs may last. And for you, that might be a consideration too. Think about what might happen during that holding period to force you to cash out, even at a loss. Selling land in a hurry usually means offering a large discount. If there's a chance you'll have to do that - mark this down as a research opportunity, leave it alone, but watch it and learn from the future.
False urgency in real estate has bankrupted many, many people. Opportunities will always abound.