Vacant Land Purchase

[Andrew Warner]

Investment Info:

Other buy & hold investment.

Purchase price: $490,000
Cash invested: $122,500

40 acre vacant parcel (previously was a cherry orchard). Has fields, woods, meadows/valley, a pond, wildflower fields.
Planning to start with an Airstream on property to bring in some revenue (unique STR) while we decide what to do with it. Just picked up the Airstream. Planning to put a driveway in this spring (nearly 1,000 ft long) which will be an expense, but add equity. Perc test on file for conventional septic system, and we may drill a well and bring back electric this year.

What made you interested in investing in this type of deal?

I think large tracts of vacant land is becoming harder to come by. For now we are playing on it but are brainstorming different ideas as to what to do for revenue.

How did you find this deal and how did you negotiate it?

Off market with a farmer.

How did you finance this deal?

7/1 ARM vacant land loan with 25% down.

How did you add value to the deal?

So far made trails and two tracks, had 1500 cherry trees taken out. Plan to have it fenced in and add driveway this spring. May drill a well and bring underground electric back.

What was the outcome?

We are still learning the land and figuring out what we want to do with it!