Farm land vs. Rental apartments

[Eric Hulstrand]

Hey All,

I have kind of a unique question.

I recently inherited, free and clear, 90 acres of great farm land.  I also currently own 20 units of apartments (12 unit and 2x4-plexes). I am quite in debt on my rental real estate and am bleeding negative cash flow every month).  I could sell the farm land and pay off all my debt, including all the mortgages on my rental real estate, PLUS my home mortgage.

However, I would have NO more farm land.  Rental real estate is in eastern North Dakota (no oil there, just good steady rents).

So, should I continue to SLOWLY stop the bleeding on my rental real estate and keep the farm land OR sell the farm land to pay off all my mortgages (REI and home) OR should I just sell my rental real estate, lick my wounds and start over with the equity on the farm land?

Finally, I do believe that the U.S. is headed towards the rocks financially and we will very likely find ourselves in a country with more and more capital controls.  IF that happens, which is better to own, farm land or rental real estate?

I hope that makes sense in such a short space.  Thoughts?

[Rick H.]

I hear shelter is not going out of style. At least not anytime soon. 

Farmland is for farmers. When my grandparent left Miller, SD in the 1930's times were tough. I never heard anyone complain or regret giving it to the oldest Son who stayed and worked it. 

If you've got ag in your blood, it's not a decision. If you don't, let they folks who do grow crops while you grow your estate.