Buying property with lots of land (10-20 acres)

[Mike Arias]

I sometimes see houses sold with a lot of land (10-20 acres). I instantly think this maybe a good way to make additional cash flow. Maybe add another house (assuming the cost and access to electricity, water, sewer is there). Or maybe add a RV and do STR. Or sell a portion of that land. Seems like so much opportunity.

I want to hear from people who have actually bought property with a lot of land (5 acres minimum especially with 10-20+ acres). Did you do anything to add cash flow? Is it more of a headache having that much land? Has anyone put in one of the RVs that look like a bus and did STR? I think that is the easiest way to get additional cash flow. However I may be oversimplifying all this.

[Jay Hinrichs]

Quote from @Denise Supplee:

Hey @Mike Arias. The biggest thing I’d add is to think about exit before entry. Land can feel flexible, but it’s only valuable if there’s a clear path to monetize it, whether that’s development, subdivision, or resale to someone who can execute. We’ve seen a lot of people get stuck holding land because it looked like opportunity but didn’t have a clear, executable plan.

it all starts with Zoning then your work backwards quite simple to go to the county were the land is go to the GIS look at zoning then read the zoning ordinances. 95% of the time maybe more those type of properties are only zoned for one dwelling and then maybe an in laws quarters etc.  The sustainable value in land is based on the zoning. 

Each state and county is unique in their zoning codes and application of such. 

For instances in some Rural Washington State counties there is NO zoning at all.. Permits go through the building department which is one guy/gal. But market conditions generally restrict what you can do along with Sewer Water and such. 

Other locations zoning is quite specific and you have zoning that allows development BY RIGHT these generally mean no public meetings to develop based on what is in the zoning code and if the code allows for development or any significant development the price is going to reflect that 90% of the time.. Owners know what they have generally speaking. 

Bottom line though is Utilities will be a big driver to density.