Advice on my Vacant Land and F&C Rental

[Derek Tyler]

Hi Everyone.  Looking for some insight and advice.  Currently I have 49 acres of raw land in rural Va that is free and clear, 2 rentals (1 paid off and $100k equity in the other), my personal house ($150k equity) and $90k in savings.  

I'm looking for advice on the vacant land.  I'm a little frustrated with it, as it is an asset whose value hasn't increased much over the years and isn't getting much return on it (currently renting some of the land to a corn farmer to cover tax/maintenance costs). I was interested in selling it for around $200k and parking the money with a financial advisor for 10-15 years to make 5-10% each year for retirement and the kids' education.  However recently I have been thinking of better ways to maximize the value.  I was thinking of trying to partner with a solar farm, land based businesses, trying to subdivide or whatever else came to mind. 

Recently I was thinking of getting a construction loan for a vaca home and build a $300-350k house on the land to bring the value of the house/land to $500/600k and make it easier to sell or appreciate it's value if I rent it out.  I don't have the knowledge or resources to subdivide and build on multiple lots.  So my thoughts are I can sell for $200k now and reinvest or I can put 10% on a vaca home construction loan (through cash or a heloc on the F/C rental), build and sell for $600k in a year or two.  My thoughts are I can get $200k now with little to no work or try to build on the land (relatively flat with a pond on it...haven't had it perc tested) with $30-50k out of pocket to get a higher return and fast track my retirement/kids college goals.  Any thoughts?