My name is Cara and I'm new to BiggerPockets. My family and I are paying to own 32 acres of land in the St. John's Arizona area over the last couple years. We have not done anything on the land yet because its very far from all our primary residences and does not have basic things like a well paved road and a water source. I've been listening to many BP real estate podcasts over the last few months and did some research on this area and it doesn't seem like the economy in the area is growing. We wanted to eventually use this land for short and long term rentals and it would take much money and time to make that happen. Does anyone have advice on what to do with this land if we still want to do real estate investing as a family?
Specialist · Long Beach, CA · Member since 2011 · 875 posts · 394 votes
1y
Hi Cara. Land investing is very tricky. Most people that I know just sit on it for decades, while paying property taxes. I would highly recommend you sell and do a 1031 exchange into something that will produce income, like a rental property. I have a client right now that is doing just that. His family has owned this land for many years, and now the family wants income. So they are selling and rolling that into several income producing properties. If you want to setup a time where we can talk, message me. I'm happy to consult and see if it makes sense.
Specialist · Long Beach, CA · Member since 2011 · 875 posts · 394 votes
1y
Hi Cara. Land investing is very tricky. Most people that I know just sit on it for decades, while paying property taxes. I would highly recommend you sell and do a 1031 exchange into something that will produce income, like a rental property. I have a client right now that is doing just that. His family has owned this land for many years, and now the family wants income. So they are selling and rolling that into several income producing properties. If you want to setup a time where we can talk, message me. I'm happy to consult and see if it makes sense.
Realtor · Phoenix AZ, USA · Member since 2023 · 209 posts · 81 votes
1y
Hi Cara I'm an agent and investor here in the Phoenix area.
Based on not having water, roads, etc. you could still do a tiny home or RV space there if you put in electrical hookups and a septic tank. I think that really depends on the draw to the property like does it have good views, close to a lake, room for motorsports.
Another option could be to sell and put that into something appreciating faster and maybe a bit closer to where you live.
Overall it definitely depends on what your goals are with real estate investing, I'd be happy to get on a call to discuss with you!
Realtor · Phoenix, AZ · Member since 2021 · 271 posts · 115 votes
1y
Hi Cara,
It all depends on how quickly you want a profit.
Most investors I know that buy considerable land quantities sit on it for 15-25 years and wait till the demand gets there. They also sometimes put in the infrastructure and then sell it to a developer as well.
If you and your family are looking to strike sooner rather than later, it might make sense to sell it and reinvest in a new project.
Real Estate Agent · Mesa, AZ · Member since 2017 · 230 posts · 169 votes
1y
Investing in land is an old method and it does a good job at holding value. However, if you are looking to grow your money or make income from raw land it is very difficult to do so. I'm in the Mesa/ Gilbert area of the state and have had some of my investors I work with purchase land right outside of town in the pathway of the expected growth of the town. That method made them money, because people wanted the land. Owning random land in the middle of nowhere won't do much for you other than cost you in property taxes. I would do a 1031 exchange into a rental property.