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Updated almost 9 years ago on . Most recent reply
2nd Invest Property - Barn and ground
I just got home from closing on our second investment property. Our primary residence sits on 1 acre and is surrounded by another 9 acres of farmland including a large barn. The barn and farm ground is currently rented to a farmer for well under the 2% rule but obviously still made sense to buy it. I have some ideas on how to increase cash flow including framing in the open end of the barn as self storage:
Most Popular Reply
I would love to share some numbers! The purchase price for the 9 acres + barn was $110k. We owed about $77k on our primary residence. Both properties together appraised at $225k which was the low end of what I expected. So what we did was basically a cash out refinance on the primary residence rolled into the new property at 80% LTV. I walked away from closing with a check for $600 and collected the rent check (only $2440/year) yesterday.