Stepping off the ledge

[Tim Robbie]

Hello everyone, 

I'm curious what advice you all have for me concerning my given situation.

until recently I've had no real experience with real estate.

My wife owns a home in the UK which we rented out last year and has the tenants paying the mortgage on currently but isin't really making any money.

We purchased a fixer upper house here in Texas a few weeks ago to live in also and hopefully flip in a few years.

Ive enjoyed these experiences and they have really peaked my curiosity on how to get more involved in real estate, which made me start thinking.......

Basically I inherited around 800 acres of ranch land this year and want to leverage it to buy some rental properties.

The land is worth roughly $2,000,000. 

I believe I should be able to get at least 75% out on either an Ag loan or some type of LOC.

Ive managed ranches my whole life and understand how they operate from a business prospective and I could roll this into buying another ranch but, I just don't think the cash flow will be there as in rentals.

My goal is to net $100k/yr. as passively as possible and grow from there at a moderate pace within the USA.

Can you shed some light on multi family vs single family, choosing location and how to strategize the investment of $1,500,000, please?

Has anyone done anything similar? 

What would  the smartest way to leverage this property?

Thank you for looking,

Tim 

[Nick Shri]

Quote from @Tim Robbie:

Hello everyone, 

I'm curious what advice you all have for me concerning my given situation.

until recently I've had no real experience with real estate.

My wife owns a home in the UK which we rented out last year and has the tenants paying the mortgage on currently but isin't really making any money.

We purchased a fixer upper house here in Texas a few weeks ago to live in also and hopefully flip in a few years.

Ive enjoyed these experiences and they have really peaked my curiosity on how to get more involved in real estate, which made me start thinking.......

Basically I inherited around 800 acres of ranch land this year and want to leverage it to buy some rental properties.

The land is worth roughly $2,000,000. 

I believe I should be able to get at least 75% out on either an Ag loan or some type of LOC.

Ive managed ranches my whole life and understand how they operate from a business prospective and I could roll this into buying another ranch but, I just don't think the cash flow will be there as in rentals.

My goal is to net $100k/yr. as passively as possible and grow from there at a moderate pace within the USA.

Can you shed some light on multi family vs single family, choosing location and how to strategize the investment of $1,500,000, please?

Has anyone done anything similar? 

What would  the smartest way to leverage this property?

Thank you for looking,

Tim 

Tim - welcome and congratulations on starting the journey. $1.5M can go a long way. You can buy a small, mid-size apartment complex that CFs well. Since you like to fix up things you can buy a complex that may require some TLC as well as room to grown rents. You can also consider buying a portfolio of SFHs and manage them. $30k as down payment on a SFH or (1-4 unit MF) will buy you a $120K property. You can get up to 10 conventional mortgages, you could use rest of the funds towards non-QMs. You can mix and match the asset classes in your portfolio - couple of SFHs, couple of 1-4 MFHs, 1 or 2 small 5+ apt complexes, your possibilities are endless. Can you build a couple of small units on your ranch and make the STRs? Now you have an income generating land which you could use to buy more properties. There is no one smartest way to leverage your $2M ranch, all can depend on your investment goal/criteria.

Cheers!!