Subdividable land with old ranch house

[Jena Vail]

Investment Info:

Other buy & hold investment.

Purchase price: $405,000
Cash invested: $180,000

This was sold as a 160 acre ranch, BUT it did have an OLD ranch house that was in too poor of shape to live in. We purchased the ranch to graze our cattle, then fixed up the home for a renter.

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

We wanted something that we would be able to subdivide and sell.

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

We looked for ranches that had been on the market for a long period of time.

How did you finance this deal?

Land loan through Northpointe bank

How did you add value to the deal?

Knowing Colorado subdivision rules, well permitting, and some general construction knowledge helped make our deal swing.

What was the outcome?

A property that has doubled in value because we fixed up the home and subdivided it.

Lessons learned? Challenges?

Have a good electrician go through any older home.