Hi,We recently (Aug 2024) bought commercial land of around 2 acres. this was part of bigger commercial lot (around 25 acres) which had AG exemption and so the taxes that they paid was around $20 each year. we received a 'AG ROLLBACK' letter from the appraisal district that starting 2025 tax year, we will be taxed at it market value resulting in additional taxes, interest and possible penalities for 3 prior years.

Every state has a slightly different process, and time frame for each step, so you may want to consult a Realtor for your state process.

The taxes are higher, the properties are older, however we account for those issues.

4. have you consulted with property managers?

@Bradley Buxton makes a very good point to make sure to do your due diligence as you won't be an owner occupant like your in-laws.Last bit of advice: Because this is a friendly deal, you want to take your time to make sure you structure it in a way that maximizes tax and cashflow benefits for both parties. 

The land is on two tax lots so my plan is to sell the extra lot immediately after closing for a projected $275K.The property on the other lot will be a fix and flip with projected costs of $240K and an ARV of $750K.I plan to use a PML of 2 points and 12% APY for 70% of the total cost.

(Loan paydown, tax savings, etc etc..).

I'm talking about tax season! 

You would have had to be there for at least that to save on the capital gains taxes (up to 250k). 

I’m looking for ideas of how to do this, and any advice on how to protect my primary property along with paying low taxes.