A family member owns 40+ acres of land just outside of Amarillo (about 10 minutes outside the city). A consideration is to sell off about 5 acres of the land. They know I'm doing some real estate here and there and asked what might be a good solution to use some of the land. There is a house on it which is currently not occupied. I remember listing to a podcast a few months ago about mobile home parks being a good cash flow investment.
One suggestion I made was to seek out a partnership agreement with another investor such as a mobile home developer. This way, the investor doesn't have to buy the land but both the investor and the land owner gain the benefit of cash flow without having to put out a lot of money upfront.
Would greatly appreciate some feedback on some various ideas for what would be the "highest and best use" for the land. Thanks.
what would you do for water?
Land can be had cheap outside Amarillo, $650ish an acre 10 minutes outside of town, depending on the direction.
5 acres next to some land I own has been sitting for $7500 asking price.. It seems the lot rent wouldn't justify the cost associated with making roads, digging wells, and doing whatever else would be needed for such a park, plus I'd think it'd lower the value of the rest of your land being next to a trailer park.
Frank explains why you don't build parks here:
Can't argue with that and it says its all.
I also remember looking at a park in Amarillo and this particular area of town had extremely low house prices ( bad for parks) among the other 5 things wrong with it.
Wow, thanks for the article. Very helpful. Do you have any suggestions on what might be the highest and best use of the land?
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