Buy or sell? On the fence in horse country -- Marion County, FL

[David Wheat]

Once upon a time, there was a 5 acre parcel in Marion County, Florida. It was split in two, bequeathed to heirs, then eventually sold to myself and my nephew. He is living on the smaller parcel. My parcel is vacant and essentially unimproved. Here are the facts:

• 5 acres total

  • 5 minutes from HITS

  • 18 minutes from WEQ

  • 25 minutes from downtown Ocala

  • 31 minutes to UF

  • Zoned A1

  • Nice neighbors

  • One driveway ~800’

  • Half cleared half wooded

  • Fertile soil

  • Laughable fence

  • Lots of dying water oaks ~40 years old

  • 3.72 acres owned in full by me

    • The parent parcel

    • No home

    • No well

    • 30 year old septic (1000 gal, worked fine 2 years ago)

    • Existing electric meter

    • Cable internet access

    • 2015(?) 12x10 lofted shed

    • Beautiful 50’ sycamore

    • Tasty pear tree

  • 1.28 acres owned by nephew (mortgage on home)

    • 2017 964’ single wide

    • Working well (4” submersible)

    • Working septic (vol unknown)

    • Existing electric meter

    • Cable internet access

Since buying my property in 2016 my vague yet rapidly solidifying plan has been to build my forever home, fence it for horses and build a four stall barn, bring in a nice single wide or better, and rent the single wide out to equine enthusiasts during HITS and such. I’ve got plans and drawings and improvement costs all laid out. My nephew’s plans once paralleled mine, but he has a growing family and needs a bigger place and suddenly wants to sell. I would prefer not to sell my property because there’s a lot of potential for long-term profit and the eventual winter retreat. I would move my wife, daughter, three indoor cats, and large dog into the trailer until we could get our forever home built. She Who Demands Not Very Often demands a screened porch be built for litter boxes and cigarettes. She has spoken and so shall it be.

At the same time, the market has improved and he thinks he can get a good price for his home. If my ROI is the same as what he's expecting for his, I'm willing to sell. Plus I really don't like the idea of a mystery neighbor. I'll be sad to lose the place, but I have no roots here other than that property and my job.

Here's my conundrum. I can afford and qualify for an FHA loan for the single wide and land, but I'm unclear about my options to concurrently finance the building of a traditional home on my parcel and how that will affect. I think it's going to have to be a construction to perm loan and if I understand correctly, they can't refinance the FHA loan because it's secondary market. The county says I can recombine the parcels but that won't matter to lenders, apparently.

I have made it past these checkpoints:

1. Does my wife HATE the trailer?               NO

2. Does his asking price align with comps? YES

3. Do I qualify for a loan?                            YES

Here’s what I’m up against now:

1. Is there a way to

   1. Mortgage nephew’s singlewide and land, AND

   2. Construction to Perm loan on my land, AND

   3. Get both properties onto one mortgage, AND

   4. Recombine the parcels?

2. OR

   1. Mortgage nephew’s singlewide and land, AND

   2. Construction to Perm loan on my land, AND

   3. Maintain two mortgages and separate parcels, AND

   4. Rent full time the singlewide under my LLC and allow usage of part of my larger parcel?

If there is no good way to achieve one of those goals, my decision will be easy.

Any advice/direction is welcome!