This is true - lots of little expenses can crop up even on unimproved land. Then you also have to deal with the squatter issue or kids hanging out there. And building codes often change. What is acceptable to build on land today, might not be so in 5 or 10 years when you want to build or sell as a buildable lot. This happened to my Dad when he and his wife bought some land in Oregon. The lot just sat there a long time as he was planning to put a mobile home on it once they retired and live there. However, before he could do that, the laws changed and he was required to build something on it asap - a stick built home of a certain square footage as mobiles were no longer allowed (only the ones that were already on the lots could remain). So he had to sell the land.
Anyways, sorry you missed out on the very cute place Butterfly Breath. But in the end it might be a good thing as you said the commute down the mountain for work would be tough as would finding jobs in the area. As for the land gifted to you, that does sound great but you needs to look into it further to make sure it isn't going to be a financial drain on you rather than an improvement.