|
Post by trapperdave on Apr 5, 2017 12:55:10 GMT -5
Get out of the suburbs where land doesn't command a premium. You can get 3-5 acres for that ten grand
|
|
|
Post by trapperdave on Apr 5, 2017 13:01:40 GMT -5
80 acre farm just down the road, recently renovated two story three bedroom house, two barns twenty acre woods sold for under 3k per acre. Killed many a deer rabbit and squirrel there over the years. Person could have bought it, rented house for 1200/ month easy plus rent tillable for over 200/ acre....do the math...how long to pay it off?
Then you own it outright.
|
|
|
Post by swilk on Apr 5, 2017 13:01:42 GMT -5
Not in farm country.....
Ten thousand is middle of the road anywhere even close to me. The worst farm ground might go for $4,000 an acre and the best might go for $16,000 an acre. Of course most farmers wont want to farm the worst of the ground and those that do wont want to pay much for it. If you can find someone to give you $100 per acre cash rent it takes 40 years to pay off the principle. Plus taxes. Plus insurance. Plus interest.
|
|
|
Post by swilk on Apr 5, 2017 13:06:52 GMT -5
80 acre farm just down the road, recently renovated two story three bedroom house, two barns twenty acre woods sold for under 3k per acre. Killed many a deer rabbit and squirrel there over the years. Person could have bought it, rented house for 1200/ month easy plus rent tillable for over 200/ acre....do the math...how long to pay it off? Then you own it outright. 20 years give or take a couple. Put 10% down. Borrow the rest at 5.5%. Assume $3,000 per year in incidental costs on top of the known costs. Assuming everything works out like you said. Finding someone to give you $200 per acre for 55 acres. Renting the house for $1200 per month. For 20 years straight. Those numbers dont add up around here though. Ground aint that cheap. Houses arent that cheap.
|
|
|
Post by trapperdave on Apr 5, 2017 13:09:05 GMT -5
I'll make it easier...9 1/2 years
|
|
|
Post by swilk on Apr 5, 2017 13:10:51 GMT -5
ill trust my math ..... its more realistic.
I would need to see what kind of house can be bought as part of that deal that could rent for $1200 per month "easy" though .... that might be just wishful thinking on your part.
|
|
|
Post by trapperdave on Apr 5, 2017 13:11:29 GMT -5
This is smack in the middle of prime farm country. Hancock county. Over 150 bushel corn per acre easy. Its out there...gotta work for it. Like free access to private hunting, not going to find it on the internet
|
|
|
Post by trapperdave on Apr 5, 2017 13:13:24 GMT -5
1200/ month rent equals 14400 60 acres tillable rent 12000
Place sold for 250000
250000รท26400= 9.46
|
|
|
Post by swilk on Apr 5, 2017 13:17:26 GMT -5
80 acres total. Minus 20 acre woods. Minus where the house and 2 barns sits 5. Leaving 55 tillable acres.
14400 11000 25400 total yearly best case scenario.
taxes 3000 insurance 1000 incidental costs 3000 principle and interest 18,600 (after putting $25,000 down)
25600 each and every year for 20 years.
|
|
|
Post by trapperdave on Apr 5, 2017 13:18:36 GMT -5
Nothing wishful about it. Its a fact. Spent a good deal of my life on that property and in that house. It was my aunt and uncle's place.
Wasn't sold to family either, so save your family bargain comment. Lol
Old farmers around here will deal with buyers they know aren't going to flip it or divide it up
|
|
|
Post by swilk on Apr 5, 2017 13:19:16 GMT -5
So in hancock county they are just giving away houses and selling farm ground for 25% of what it is going for other places?
Forgive me if I dont believe that.
Even if I did the fantasy equals 20 years to pay off ... not 9.
|
|
|
Post by trapperdave on Apr 5, 2017 13:19:35 GMT -5
Our taxes aren't near that much for farm ground
|
|
|
Post by trapperdave on Apr 5, 2017 13:20:09 GMT -5
I don't really care what you "think"
|
|
|
Post by trapperdave on Apr 5, 2017 13:23:04 GMT -5
Even with your math and outrageous expenses...in 20 years you have land worth over double what you invested Maybe 10x the way land prices have risen the past twenty years.
Land, they ain't making any more of it. The best and surest investment out there
|
|
|
Post by boonechaser on Apr 5, 2017 13:25:12 GMT -5
I'm surprised farmers are still paying that much for farm ground with corn prices as low as they are. Talked to a big farmer last week and he said it cost him roughly $225-$250 per acre to put out corn. Hard to make any money with $3.00 corn. Guess that's why most plant more beans?
|
|
|
Post by swilk on Apr 5, 2017 13:27:08 GMT -5
Outrageous expenses? I was being generous....
Land prices havent risen at all in Hancock county according to what you just said .... they dont care about money or what its really worth as long as it wont be flipped or divided.
|
|
|
Post by Jamie Brooks 1John5:13 on Apr 5, 2017 13:27:27 GMT -5
Farmers probably have to go big or not at all.
|
|
|
Post by jackryan on Apr 5, 2017 13:28:39 GMT -5
The thing I would do differently I would have a Home somewhere and my Hunting property would not also be where I lived Close for sure but NOT the same property The further away you are from the "stuff" you own, the more it get's stolen, vandalized, and taken advantage of by your renters, the county, the government, utilities, neighbors, friends, relatives, local thieves and just plain random people "from the city trying to get away from it all".
|
|
|
Post by jackryan on Apr 5, 2017 13:30:47 GMT -5
When my wife and I were first married, we rented for a year, then bought a used trailer and lived in it for the next 3. I wanted to buy some acreage and move the trailer there, then eventually build after paying off the land. Every lender we talked to though wanted 20-25% down, and it was going to take a few years for us to build up that kind of cash. Long story short, wife wanted out of the trailer so I caved and we bought a little place on the edge of town and put land on the backburner. After our house is paid off, I'm really thinking about taking out a 401K loan to use as a down payment on some property. Nothing too big, maybe a 100 acre spread. You can still find it around me for around 2k/acre for non-tillable. I know it's not considered sound investment planning, but life flies by too fast to not pursue the things you want. To be completely honest...if I could choose any size property I am not sure I would want more than 100, so good deal. However, people ask me what I thik is a solid size and I've always shared some of the best properties I've seen sculpted over time are in that 40-60 acre range. In a perfect world I hope to turn my 22...into around 40 down the road. Bigger is ALWAYS BETTER, more is never enough.
|
|
|
Post by jackryan on Apr 5, 2017 13:34:48 GMT -5
suppose it really depends how many people or family members you allow to hunt it. 40 acres for 2 guys who also hunt some other property to rest it sounds about right. Have thought about buying close to good public land also so I have some options to rest the property and be able to hunt fresh spots which have seen minimal/no pressure that season Just like stepping in to a time machine. LOL, good luck with that. Every piece of baloney has two sides. Best look at both sides before you eat it.
|
|