Thinking about fixing up a farmhouse and turning it into rental property. It's got about 5-7 acres on it, 3 bedroom, 2 bath...

but I still owe about $60k on it and im looking at about $50-60k worth of work to the place, and the numbers are not working out...

mortgage and taxes and stuff are about $1500 a month... I'd have to get mortgage and loan covered to do this but not sure if I can rent out a farmhouse for $2-3k.... it's in Millican... so not TOO far from south CS...

any opinions?

I keep about 40 beehives out in the back and I'd kinda like to keep them... so not sure if I want to keep 2-3 acres for bees.

Can't speak for the bees in this scenario,

But could you build a stable or few and rent the property to some cowboys? I know there's a solid chunk of small duplexes off Tabor Rd that have stables that are popular. Don't see why you couldn't do something like that?

Probably could spend half of the $60K on the stables and use it to add a premium to the property. Not sure how much but would be solid.

Is this property off Peach Creek/159? Or actually off Wellborn?

Red Pear Luke (BCS) said:

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Can't speak for the bees in this scenario,

But could you build a stable or few and rent the property to some cowboys? I know there's a solid chunk of small duplexes off Tabor Rd that have stables that are popular. Don't see why you couldn't do something like that?

Probably could spend half of the $60K on the stables and use it to add a premium to the property. Not sure how much but would be solid.

Is this property off Peach Creek/159? Or actually off Wellborn?

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between Millican and highway 6 on 159..

The bees will be giving me a tax exemption starting in 2024...

The building is needed leveling... thats like $20k... cause it has no shower.... needs to be level for the shower.... then put in shower.. maybe 2.. redo kitchen, etc etc... so a stable would be additional $$$...

How much value in the house - is most of your value in the acreage?

I don't know the rental market in BCS, other than what I see on here, but that seems like a big nut to cover with the added hassle of tenants. It would take quite a while to just recoup your reno money.

If the house is in pretty bad shape, how would you come out removing the house and having the Ag Exemption for the land alone with bees? Less tax & insurance for sure. We did similar on a piece with a house in poor condition BUT it was in a rural area and there was no way to pour money into fixing it and get a decent rent. We could not make the numbers work. Your situation close to BCS changes that equation though.

Separate the property? Sell 6 acres for someone to build their dream home. Keep the house as a rental?

Turning into rental doesn't effect your upcoming AG exemption?
Also, $2-$3k is quite a range. $2000 is reasonable though.

If you could provide/market at as a house for people to live in and keep their horse(s) too, that can get you in the $3k range. House seems like it is in rough shape though.

I think Luke's advice on the stables is really good. There isn't a lot of rental housing with that as an amenity. I got my brokerage license start in BCS doing house hunting for college students and we had like four units that could accommodate horses and those always went fast.