These properties are probably different than 98% of people on here deal with, but it is my line of business and has been for a long time. Hunting property. I buy, sale and hold, property that is used for hunting and recreation from 30 to 1000 acres, sometimes vacant land I improve, sometimes I build cabins, etc. a lot of different scenarios. For the sake of time I will tell you about a recent scenario. I have a few deals like this one and my instinct is to go long term instead of flipping.
I bought 60 acres, for $60k, of vacant land unimproved to turn into a duck hunting property. It has the right terrain and geography. I built a levy with a bulldozer to hold water for the waterfowl that cost $6000 and put in an irrigation well, for $12000, to guarantee water year to year. With another couple of small things I have $80K in the property. I can easily lease this property for $8000 a year increasing to $10000 within a couple of years. Once the property is leased it is maintenance free the only thing I have to pay are the taxes, which are about $150 a year. The rent goes up every year and the property appreciates. HOWEVER, I could sale the property $150k yielding and gross profit of $70k.
This is where I yield to the experts. Should I keep the virtually passive income property? Or since there is an 87% return instantly, should I sell? Thanks guys I await your comments and advice.
