Getting pos cashflow from 5 acres and a house

[888Katone]

I like lateral thinkers and enjoy a little lateral thinking myself....

I was looking at a property in Harcourt Vic with a nice period house made out of timber and stone, 5 acres, sheds and tank water with fenced paddocks. It is selling for around $390K.

What sort of rental income or "use of the property" income could you get out of such a property to turn it into a positive cashflow investment....

You can rent out the timber & stone house its 4 bedrooms - lets say you'd get $200K for it ?

You could organise horse agistment..what would you get for that ?

What other income could you get ?

 

[Nathan]

if i get 200k pw for the house and price is $390k i will buy it straight away... 2 weeks rent and the house paid off.

 

[888Katone]

haha !!!

OOOOPS !

$200 PER WEEK !!!!

Got any ideas Nathan ?

 

[Nathan]

dump a couple of caravans onsite and rent them out they will cost $2000 each and you may get $100 pw for argument sake... get a portable ameneties block for $5000 and hook up to sewer for 10-15k you will have 2-5 caravans set up and renting out.
if you get busted by council a) i never told you to do that, and b) you can sell all the facilities on ebay and get your $$ back, only prob is then your cf will be affected.

worth the shot tho.

 

[D.T.]

Depending on the location, convert the home into a bed and breakfast business?

 

[888Katone]

Interesting idea bed and breakfast - not sure how i'd run it since I live 100kms away - however - I guess you could hire someone to do the breakfasts and cleaning portion....

Plant some olive trees, fields of lavendar - some grape arbours - call it Tuscan Farm, in the heart of central Victoria....

Not far from Bendigo and in an apple growing, wine and gourmet food district so not such a bad idea !

Could be cool !

 

[Dazz]

You'll be completely governed by what the Council shall allow.

As always, the Owner of a property foolishly believes they can do as they please with their property - but alas when reality sets in you quickly realise that you are dictated to from almost every authority.

I have no idea where Harcourt is....but if it's close to some industrial stuff, perhaps you could lease the spare land to a trucking outfit to store their trailers and dollies. Fence off an acre or two and let them lock it up. They'll pay you a motza for it.

The neighbours will probably try and sue you for loss of their amenity, and the Council shall post you a cease and desist notification as the property is zoned rural and not industrial.

....but then, treading on toes is sometimes what you need to do.

I like win / loses.....win / wins are so passe.

 

[888Katone]

I like the idea of leasing the spare land to someone...but not a trucking outfit as it is quite the boutique hobby farming area.

Too many people would notice the trucks - and it would be a total waste of time....

If you could only a camoflauge a mobile phone tower !!!!!!

 

[BayView]

Depending on the location, convert the home into a bed and breakfast business?

Not a lot of money in it - it's a lifestyle job, and very hands on.

Even the self-contained cabin type lodging requires some hands on.

To get cleaners in etc would eat up a lot of profit.

 

[topcropper]

A commercially sized, professionally run grazing property doesn't even achieve positive cashflow, so it's unlikely 5 acres ever will unless you were growing vegetables intensively.

Hobby farms are a high growth, low yield investment. Buy one for the capital gain, or give it a miss.

See ya's.

 

[luvvit]

What about subdivision? Can you subdivide the house and small block of land, and make some half acre or third acre blocks.. sell them for a song.

there is always someone who wants to buy a good priced block of land....

yes, you'll be left with a house on a small block, but you'll probably own it..
Noice kimmy noice..

 

[PrimeCommercial]

A commercially sized, professionally run grazing property doesn't even achieve positive cashflow

It all depends on the crop you grow, choose the right one and you'll be positively geared easily....You just might have to hide the 'crop' from prying eyes.

 

[knightm]

It all depends on the crop you grow, choose the right one and you'll be positively geared easily....You just might have to hide the 'crop' from prying eyes.

Thats a little shady