Investment Info:
Other buy & hold investment.
Purchase price: $112,000
Cash invested: $40,000
Buy and Hold on 16 acres of vacant land in Rogue River, OR. Zoned Forest Reserve (not allowed to be sub-divided), only 1 residential property allowed to be built. Bought the property behind me with my step-father for $112,000 with the intent to add value to the adjacent residential property of 1 acre, that is owned by myself.
Because the land is right behind my rental property, I invested in cutting in a road and built a pad for hooking up a couple of motorhomes with intent of "Glamping". But now floating the idea of a new build. Just need to secure financing.
This investment is still ongoing, but does generate revenue from the annual tree harvests that are done on the property. Loggers come in an knock down a selected number of Douglas Firs that fetch $2,500k per truck load.
What made you interested in investing in this type of deal?
Adding value to the residential home on 1 acre was the original idea. Property with more than 5 acres sells at a higher market price in this area. This property is 16 acres, and have the flexibly to wither merge the two properties together as one large lot, or keep the properties separate and do a new build on the vacant land.
How did you find this deal and how did you negotiate it?
Wilco Land, a land broker, reached out to us to see if we were interested in buying the property.
How did you finance this deal?
It was originally on the market for $125,000 and was able to negotiate to $112,000. Paid cash from Step-Father's savings.
How did you add value to the deal?
Keep my Step-Father on the title with me and pay him back 5% per month on $100k while paying down the original purchase price.
What was the outcome?
Great!
Lessons learned? Challenges?
The most challenging is learning how to rezone a property, coordinate with the county's dept. of Environmental Quality and Building Department to provide a new build. This investment is only getting better!
