Just wrapped up our first deal which started in 2021. We wanted to house hack but couldn't afford the rates. So we bought land that no one else wanted.

Purchase

$244,620 for 12.88 Acres

---- 15yr 5.625% with 20% down

---- Ag Valuation with crappy ag tenant. Approx $18k rollback taxes if developed as non-owner occupant.

---- Outdated flood FEMA flood firmette listed putting most of property as unbuildable floodplain.

--- 30minutes into Fort Worth up Chisholm Trail toll road

--- Great school district

$101,795 for manufactured house

---- 23yr 6.26% with $10k down

Cash into deal

$89,019 Basis to set manufacture house and put in utilities

$68,875 mortgage interest and taxes for 5 years

$28,392 selling expenses

Sale Price

$402,000

ROI

[$402,000 - ($244,620 + $101,795)] / ($89,019 + $28,392 + $68,875) = 30%

Appreciation

[$402,000- ($244,620 + $101,795)] / ($244,620 + $101,795) = 16%

Being willing to live on property and deal with Ag Valuation let us buy cheap land in the path of progress. Managing bee hives and sheep wasn’t hard. The homestead exemption lets you pull 1 acre out of Ag Valuation every 3 years without triggering rollback taxes. We originally planned a house hack strategy by building a triplex as the second house. In the intervening years, the county changed the regulations so each door required 1 acre of land no matter if it was single family or part of multifamily. I also had a great opportunity in my W2 career in Houston. We pivoted and sold to a buyer looking to have a multi-house homestead with animals. I think we did decently.