Income Producing Farm and Hunting Land
Wichita, KS · Member since 2015 · 5 posts · 0 votes
I'm currently in the market for 40-100 acres in Kansas. I never intend to live on this property but would either like to find something with a house already on it or ultimately we will put up a barndominium or some other unique structure to use as an airbnb. Myself and my family also have the intention to utilize this as hunting ground and a place to get away with our boys. As a real estate investor, I'm trying to figure out how to get this property to pay for itself either through crop income, CRP, leasing to a cattle farmer, etc. however I know nothing about any of that.
Has anyone done this or have resources they can point me towards?
@Patrick Oehm
Hey Patrick,
I’m a Canadian realtor and I specialize in farm and ranch properties in Saskatchewan.
I think the first step would be to find a few agents in your state that specialize in farm and ranch real estate. They should know rental rates in your target area, and have access to recent comparable sales to help you have a better idea of the price per acre for the type of land you are looking for. Up in Saskatchewan, grainland sells for a larger premium above pasture/cattle land. Not sure how things are in Kansas, but a realtor who specializes will be able to tell you. Another option would be to take a drive out in the area you are looking for, and knock on some doors. Get to know rental rates directly through the local farmers, and possibly find yourself some leads for a property directly with a seller.
I’m not sure how things are in Kansas, but in Saskatchewan, under typical sale scenarios it is very hard to get a property to cash flow if you are putting 25% down. The best scenario is usually to break even where the rent covers the mortgage and taxes (insurance will be very low or non existent if you buy bare land, but if you purchase buildings you will have higher insurance to consider).
Hope this helps.
Take care!
Justin
Thank you so much for the detailed response. I reached out to an agent a couple days ago and he gave me some ball park rates. Based on those it does seem like it's going to be tough to even get to 50% coverage of the mortgage in the areas I want. If I was to go a few hours outside of Wichita, it seems it may be possible.
Thank you so much for the detailed response. I reached out to an agent a couple days ago and he gave me some ball park rates. Based on those it does seem like it's going to be tough to even get to 50% coverage of the mortgage in the areas I want. If I was to go a few hours outside of Wichita, it seems it may be possible.
Yeah it depends on what you want. 40-100 acres really has no scale to make any money off of it.
Also land within an hour or so of Wichita will sell at rec or development land/small acreage prices - and not to it's true value IMO.
Crap land around where Iive in Topeka in between Topeka/KC will sell for 8-10k plus an acre for a cedar infested wasteland that needs Multiple $ks worth of development or a lot of hard sweat equity to get it developable. For ranching purposes the same land is probably worth sub $1k an acre - if not $600-800.
What hunting do you like to do? Have you considered leasing? I'd like to find 3-4 people to go in on a lease in SC KS or NC KS (Lincoln County/Saline County) or Pratt, Kiowa, Edwards county. I love to bird hunt - like deer but it's not do or die for me like bird hunting with dogs is.
My goal is by age 50 be able to plop down $5-10 million for a 1k-10k acre ranch or so. Size and price would be all relative to location to what the place consists of obviously. I've got a lot of work to do in my 40s to get there lol. 9.25 yrs and counting.
Hey Shane sorry for the late reply. I have 2 young boys and have access to some ground to hunt but I'm really looking for something that is ours where I can put up some tower blinds and things like that. While I enjoy all hunting, deer, turkey and waterfowl are probably my top choices. I've also thought about putting an airbnb or something creative on it to produce some income. If I have to wait 5 years to find something that works, I'm willing to do that.
If you find an awesome lease for a fair price, I'd sure entertain the idea though. I know we connected in the past but I'll DM you my number just in case.
Good hearing from you!