All Forum Posts by: Account Closed

I must also note, part of the reason the current lease is so cheap is because they are renting to a family friend.

Good Morning All Recently my grandma has passed on 200 acres of land in northern Iowa, 150 of it being farmable. My family now is weighing options. I am unexperienced with land/leases/farming but want to help make the correct decision. My Dad and Uncle would like to buy out their other brother and sistersfor this land as it does have some sentimental value, but I am trying to help them consider the costs and whether it would be a smart investment. Currently, the 150 acres is leased for farming at $200 per acre. This price is cheap given land prices. He thinks after a few years of recovery in this area it could be worth $325 an acre. (150 * 325 = $48750 per year in lease income). 5 siblings, the siblings will be buying out the other three. Farm Land Value: 150*$7500(per acre) = $1,125,000/5 = $225,000 Total Land Value: 200*$7500(per acre) = $1,500,000/5 = $300,000 Currently Leasing for: 150 acres * 200 = $30,000 per year Belief of future leases: 150 acres * 325 = $48,750 per year $48750/$1,500,000 = only 3.25% return, am I missing something on this? Furthermore, the land is valued rather cheaply right now (although lots of timber), and he believes value will come back. Now, I doubt this area will be developed any time soon, given there are under 100 people living in this town, but he is banking on appreciation of this land. Is there anyone experienced with farmland/leases who may have any input or better ideas than we have come up with? Should he bank on the appreciation and lease income and sell it later or sell it now and invest into the stock market? His stake is roughly 300k, but will have to shell out an additional 450k to buy this out. Any input is greatly appreciated! Nick

I will be househacking and currently looking to buy a small duplex in Saint Paul... The duplex is very small & some upgrading will definitely be in store but am wondering what are the most strategic upgrades or renovations I can do to increase value in my home? I would like to re-appraise it shortly after so I do not need to pay mortgage insurance. Any ideas?

Hey BP--- I am looking to buy a duplex to househack in the coming months. Question is, should I buy as an LLC or personal? I want to keep investing into more properties in the future beyond this duplex but do not want to have to pay later taxes if I sold from my personal to LLC. I understand there is no benefit to renting my own LLC property out to myself ( an possibly legal ramifications?). Has anyone encountered this and how did you navigate?

Has anyone had experience borrowing from someone in their family while providing a return on their investment for them? If so what sorts of investments did you provide as well as time frames?

@Kevin Quintanilla-Toledo I am looking at some properties right around Hamline area, did you have a decent experience? I myself am not worried about the crime, however I feel renting in a safer neighborhood not only guarantees less theft/damage to the building but better tenants rather than in a less wealthy neighborhood like Frogtown. @ Ali K. To me it seems like it is becoming more a buyers market especially since interest rates are at an all time low. Perhaps times like now when we are hearing not too much on buying vs selling are a time when it is a great opportunity? @Ivan Widman Messaged you. @Jadde Rowe I have an agent but will let you know if things change. Appreciate you reaching out!

Thanks all for the insights. Are you guys using MLS or other active methods? I would think the market heats up in the next 3-4 months but may start looking for private listings via my Jeep. Has anyone tried this and had success? Ivan - 4 bedrooms +, yes. I am looking at FHA loan but considering raising my purchase price as I prefer quality > quantity. I hope to have my tenants in in a decent area compared to sketchy neighborhoods ( I think this will help for screening purposes too). Probably somewhere around the 300,000 range. What sort of stage are you at in your investing? I'd be curious to learn more about how you are approaching this.

Hey BP--- Beginning investor here looking to purchase a multi-family/duplex unit within the next two months. I am planning have most of my mortgage paid by my tenant while socking my addition towards a money market fund as a down payment in a couple more year for another unit! I've been shopping Zillow/Trulia/you-name-it for daily updates on a duplex in a relatively safe neighborhood in the suburbs north of Minneapolis/St.Paul (think Roseville, Shoreview, Como area) but I seem to be having trouble finding decent properties that are not in relatively safe areas. I am wondering, is this a common theme in this area? From what I have seen in my price range (220-270,000 with 4+ bedrooms) it seems to be the case.