How often do shared fence land come up for sell

[Joe Trainor]

My wife and I started purchasing rentals a few years ago with a goal to purchase a farm/land/hunting camp in 5-10 years. After two years and 2 rentals we found a house and 35 acres next to some out of town family members the day it hit the market. We got it under contract same day, made the trip and discovered they owned the house and 5 acres across the street. Got a local lender who created one loan for both properties and checked our 10 year box early.

Few years later we are in a position to buy more rentals and are actively looking.

As fate has it, our neighbor approaches us wanting to sell his 40 acres that boarders a few of our fence lines at the camp. He wants us to make the first offer though but he is serious as he is ready to retire and wants to sell the land while keeping his home.

Assuming you could only afford the note on the property or invest in another rental, would you jump on this opportunity to add an to an existing farm as it may never come up for sale again or would you save your funds to invest in another rental that would create revenue.

[De Rasche]

Joe,  We land bank farms in the path of cities and jobs for investments and enjoy in the interim.  We have enough income we don't have to have the rental income nor the parts of rentals we don't desire.  That allows us to wait 5-8 years on land to sell as a whole teh aprpeciated land as the city expands or by us selling off in smaller acreage sections if road frontage allows, etc.   Buying the whole pie and then selling slices.

In your situation sounds like may be more recreational or personal residence use.  Generally, if the adjoining property helps your road frontage, protects the original investment from a neighbor hurting our land value, and maybe we would buy if it was not next to ours anyhow because of location in path or urban or jobs.  Then we add.  The term is:

Plottage is the increase in value realized by combining adjacent parcels of land into one larger parcel. The process of combining the parcels is known as assemblage. Generally, the value of the whole parcel will be greater than the sum of the individual smaller parcels.

Send a survey or landglide picture of your land and the land joining it to a developer friend you have and ask "in your area is this better for a subdivision one day?" and if so, do the math on the future lots compared to the purchase price.  Or post pictures on this thread for opinions from those more experienced in this realm.