What to do with land prior to sub dividing

Question

I just bought 4 acres adjacent to 3 acres i currently own ( waiting to buy this property for 10 years) There is a crappy house , livable but not by much . Now the old guy that died use to farm 3 acres of it , Its going to take 3 years to sub divide it . I was going to make quick repairs and rent the house . Now the land , I was thinking of farming it , pumpkins or corn . I already have a tractor , and can borrow farm stuff . What would you do

David Krulac · Answer

@Matthew Paul Besides farm the land yourself you could lease it to a farmer, maybe even lease a roadside stand for fruits & veggies. Another option would be to put it in hay and harvest the hay to sell

Matthew Paul · Answer

I am going to work on the picture , the business next door is mine , I have a construction / irrigation / roof cleaning / busineses , there are 2 backhoes 8 assorted trailers and assorted van and pick ups . The neighbors are great especially since I keep the 2 mile road clear when it snows . The best use is building houses , I am surrounded by 3000 to 5000 sq ft houses running mid 500,000 to low 700,000 . Planting the field would just be for fun and a little cash , teach my kids a bit about growing things and selling what you grow . It takes 3 to 4 years to get thru a subdivision .

Karen Margrave · Answer

@Matthew Paul I hope this @mention gets the right matthew paul, as there are 2 with the stock profile pic, you may consider uploading your actual pic. The question is, hat is the highest and best use of the property? What is the neighborhood made up of? What is the economy of the area? What type of business do you have next door? If it's a rural area, and you think the land would be good for farming, you might want to market the land and house to a hobby farmer. 7 acres is a decent sized parcel for that. My twin sister actually farmed 50 acres with pumpkins, corn, etc, and had a big corn maze. They did really well. But, with 7 acres a person could still grow enough to have a roadside stand, etc., depending upon the zoning. The sprinkler system, etc. for farming 7 acres will cost enough that it would require a commit of some time farming in order to justify it. I personally own a house on 20 acres with a seasonal pond, a 4600 sq. ft. house and 2100 sq. ft guest house, and have a zillion ideas on ways to use it to create income, however; for now, it's rented out. However; if the highest and best use of the property is to develop it for residential use, then do what needs to be done to the house, and rent it out, and move forward with development.

Kevin Dickson · Answer

"lots sold for $175,000 each , not cleared with only a gravel road ." That sounds like a pretty good neighborhood. It only takes a couple hours to turn a bathtub into a shower: http://www.vintagetub.com/asp/product_detail.asp?item_no=R2200

Matthew Paul · Answer

I was considering pumpkins , if it works fine as long as 2 grow my kids would be happy . the hard work and long hours are routine , luck , when I bought a lottery ticket and I checked the numbers , it came back saying I owed THEM money . I already have 2 guys to deer hunt , I get 50% of the meat , The guy that use to own it had 11,000 chickens and 2 acres of strawberries in the mid 1970's The house isnt much , but right next door I have an efficency that the outside dimensions of the building is 23ft by 23 ft and I get $ 750 month plus utilities . This house will go $900 right now and $ 1400 month remodeled . i have time for the development side , and already have a great relationship with a civil engineer who did the 6 acres on the other side of my property 3 years ago , lots sold for $175,000 each , not cleared with only a gravel road . Nothing is guaranteed , except death and taxes , and you can't beat both

Matthew Paul · Answer

I am planning to get the house good enough to rent , its old and dated , but very clean , I do have to replace fuseboxes with breakers . No shower , original claw foot tub in the bathroom . Zoning wont allow a legal rental for outside storage , and I dont want to draw attention or traffic since my shop is right next door and I am borderline legal , and dont want people around my equipment .

Tom Goans · Answer

@Matthew Paul, Farming requires a lot of knowledge, hard work, very long hours, courage, and a lot of luck. It may be wiser to consider leasing the property to a farmer. The one major drawback I see is how tiny the property is. Another thought is forget the farming option, just keep the weeds plowed under. If possible, plant a good cover crop (grass). If there is bird huntin' potential, you can lease the property to hunters. Still, the property is tiny. Research what the area needs to see if the land can fulfill a need. There is not enough information to provide a valuable opinion on the house. Just remember time is money and putting money in a house may not be returned. As a longtime developer, your development plan is never a guarantee for many, many reasons. If nothing else, the money factor. How deep are your pockets?

Kevin Dickson · Answer

Definitely fix and rent the house. I've had three years turn into ten, and regretted scraping the house. You may think, "this house isn't worth the money to fix up". In that case, find a solid tenant and rent it for 25% of market and encourage them to fix it up themselves. I had one tenant who kept making it nicer and nicer and eventually couldn't afford it anymore LOL. For the land, there may be a construction company working nearby that needs outside storage. Look around and inquire. They will pay lots more than you think.