Updated over 2 years ago on .
Most recent reply
presented by
1031 rental properties into farm land
We currently own two nice duplexes, they have been totally redone and are set to make money. we never intended to sell them, so have accumulated a lot of write offs against them since we started in 2019. this year was actually our first profitable year. A rare opportunity has presented itself, to buy extremely valuable land at a reasonable price per acre. the land is currently wooded (60%) and fenced in farmland (40%) the fenced in farmland currently has beef cows on it. we are cash poor, as all of our equity is tied up in assets or investments such as the rental properties, our single family home, 401k, etc. So to aquire the property we will most likely have to sell our investment properties. we would like to roll them over into the land, but a couple questions follow with if that scenario alone qualifies- would we be able to ever
1) subdivide and sell a lot to help recoup our money
(the price per acre is reasonable because it is such a big lot- if we were to sell off one small couple acre lot we could recoup an extreme amount of money)
2) subdivide and build a primary residence on a portion of the acreage
both instances leave the property's primary uses agricultural, whether it be for raising beef cows, logging the wooded acreage, leasing tillable acreage to farmers etc.
please point me in the right direction! thank you