Is Farm Land Rental Business Better than Home Rental?

General Landlording & Rental Properties
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Is Farm Land Rental Business Better than Home Rental?

Harshit Agrawal
Member since 2019 · 2 posts · 3 votes

Hi Everyone,

I am a new investor looking for rental properties in Central Ohio. I want to decide if I should go for a farm land or a multifamily home in this area. 

Thanks

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Henry ClarkPro Member
Developer · Member since 2020 · 4k+ posts · 4k+ votes
6y

From Iowa.

Rental per acre $180;  $7,000 per acre= 2.8% before property and income taxes.  Assuming you paid cash for the land.

Update for Central Ohio; then compare to returns you might make on MFH.

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  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    6y

    From Iowa.

    Rental per acre $180;  $7,000 per acre= 2.8% before property and income taxes.  Assuming you paid cash for the land.

    Update for Central Ohio; then compare to returns you might make on MFH.

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Harshit Agrawal:

    Hi Everyone,

    I am a new investor looking for rental properties in Central Ohio. I want to decide if I should go for a farm land or a multifamily home in this area. 

    Thanks

     Why not both? I do not own any farmland in Columbus, Ohio but I do now 27 doors in Columbus. Only one property is a single-family home.

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  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    6y

    @Harshit Agrawal

    If your dying to own farm ground, check out what we did with our ground.  Journey's End Subdivision, Glenwood, Iowa.

    Here is the point.  By ground that has inherent value other than farm ground. 

    1.  Pick a piece of property that has road access on as many sides as possible.  More than one.  

    2.  Check out doing subdivisions in the country side.  We can only reduce down to 2 acre lots.

    3.  Pick a piece of ground that is more of a rectangle along the road, versus a rectangle deep away from the road.  

    4.  Don't plan to do a traditional subdivision where you do a hard surface road access.  This costs to much and you have to be able to split the land into less than 2 acre lots to make it work.

    5.  With the long rectangle piece of ground, split into lots and do shared driveways for two lots next to each other.

    6.  The land you pick, look for waste ground on the back side or a ditch with trees, or as many trees as possible.

    7.  Water, sewer and electric they will need to pick up.

    8.  Covenants.  Recommend you do covenants.  If I buy a lot and put a trailer or junk on it, I just devalued your lots to the side of me.

    1Reply
  • Harshit Agrawal
    OP
    Member since 2019 · 2 posts · 3 votes
    6y
    Originally posted by @Remington Lyman:
    Originally posted by @Harshit Agrawal:

    Hi Everyone,

    I am a new investor looking for rental properties in Central Ohio. I want to decide if I should go for a farm land or a multifamily home in this area. 

    Thanks

     Why not both? I do not own any farmland in Columbus, Ohio but I do now 27 doors in Columbus. Only one property is a single-family home.

     Thanks for your reply. I wanted to focus on one thing as I am new to this. Would definately like to connect to learn from your experience.  

    1Reply
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