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What would you do to monetize this property?

2,760 Views | 22 Replies | Last: 5 yr ago by Fat Black Swan
Keeper of The Spirits
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AG
Scenario:

  • 40 acres in rural southern Indiana
  • 5 of the 40 acres dry but deep pond
  • 10 of 40 acres are wooded (no hardwoods)
  • 18 of the 40 acres are farmed via a 30 year old handshake agreement indexed to the amount of the property tax
  • The remaining 8 acres are mostly brush
  • There is some game and the geographic feature of the land makes it huntable, although I am not sure it would be worth the effort.
  • Utilities and a road have been run to the center of the property where there is a cement pad where the travel trailer used to live
  • Land has been in family for 150 years, so selling is not an option
Martin Q. Blank
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Ever see The Village?
mwp02ag
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Martin Q. Blank said:

Ever see The Village?
Keeper of The Spirits
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I need to find those creatures
jt2hunt
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Hunting
SteveBott
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Trailer park?
SnowboardAg
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mazag08
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If the property taxes are covered, then maybe just clear the portion that might be good for hunting and then maybe become a doomsday prepped or something.

I got nothing.
SpreadsheetAg
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RV Park?

Keeper of The Spirits
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Definitely thought about a trailer park. I may just buy 1 trailer and see how it goes.
Diggity
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is there any demand for a trailer park in that area? You should check out the competition.
SpreadsheetAg
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I knew a guy (interviewed with him way back) who developed Manufactured Home Neighborhoods. He basically built some roads, sewage, power and piping to about 100-200 small slabs (you could put about 6-8 slabs per acre or more). Each slab would come off the main street and be "move-in ready" for a manufactured (mobile) home. Essentially a manufactured-home community. It would take some investment, but if you built out a small neighborhood from 10 of your acres, you could charge rent or sell the sites for $10-20K each.

Conservatively:
10 acres x 6 plats per acre x $15k per plat = $900,000 dollars.

I figure main road with sewage construction is maybe $100K; foundations for 60 slabs = $120K; power service to each would be $120K and plumbing to each would be about $120K (just spitballing) - invest $460K to make $440K ?

Now I am not sure what it would cost to do the horizontal civil works for the the road, sewage, power, plumbing, and foundations... but it'd be worth looking into. There are lots of lower-income families that just need a first place to live.

Then you charge an annual Management Fee of $240 per home = $14,400 per year.
Diggity
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AG
I bet you could fit closer to 12 per acre in an area like that.

It's all about demand though. I would want to see how the other parks are doing in the area.
SpreadsheetAg
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Diggity said:

I bet you could fit closer to 12 per acre in an area like that.

It's all about demand though. I would want to see how the other parks are doing in the area.
Yeah you could, but "premium" manufactured home sites would sell for more. I think it would depend on if you wanted to sell or rent. Rent = more per acre and recurring income (more management too). Sell = better sites and more up front ROI and less maintenance. It depends on if you want to manage property or simply invest for the ROI.
Diggity
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Yeah, the OP would just need to better understand the market to see if anyone is willing to pay for larger lots.
SteveBott
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It family land. Doubt he wants to sell. I agree a good market survey is needed
lockett93
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If it's family land that you wouldn't want to sell, why would you want to turn it into a trailer park?
Diggity
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you don't have to sell land to have a trailer park.
lockett93
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I understand you don't have to sell, but to me the concept of not selling family land would also apply to not turning family land into a trailer park.

How about planting trees that could be harvested in 20-30 years?
Diggity
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not a ton of options
histag10
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re-work the farming lease?

How large of a population is around there? You say rural, how far is the nearest city of any size and what industry drives the area?
jaggiemaggie
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My folks have 30+ acres in south Tyler that's just sitting there and I've been trying to figure out how to monetize it. I've thought of RV/boat storage but it's off of an FM road so it's not highly visible from major highway
Keeper of The Spirits
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I have thought of plants some but bearing trees. My grandfather had a 30 tree pecan orchard in West Texas growing up, it basically paid for their Christmas presents and travel in retirement. I am not sure how easy it would be to manage from afar though.
Fat Black Swan
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