Turning land into an income producing asset??

Question

I own 224 acres in a rural part of West TN. The property is paid for and right now all it is doing is growing trees and costing me in taxes. I consider it a liability at the time because it is taking money out of my pocket, and not putting any back in. Any advice on transforming all,or some of this property into an income producing asset?

Account Closed · Answer

I'm planing on building small cabins or putting in RV lots.

Skyline Lau · Answer

You can host campsites with https://www.hipcamp.com/host (AirBnB for campsites). I've never tried HipCamp campsites, but I know people who have. Campsites are typically a little more expensive, but people love it because the campsites are secluded.

Rosalyn Helton · Answer

You could use it as a campground for scouts too and weekend retreats. If you get rid of the trees use the land for a flea market or fairgrounds

Mike H. · Answer

I've seen some guys with these large rural parcels that rent it out to hunters for them to hunt on.  Not sure what the insurance liability of that is but if you've got 220 acres in TN that are wooded, I'm guessing there are some fairly decent areas to do some hunting.  That would be my first thought.

If some of the land is suitable for farming, you might want to look into some of those farming programs where they pay farmers to NOT plant anything.

Lastly, what about the trees? Any chance you've got a large chunk of mature trees somewhere on the property that maybe you could some someone come in and take?

Just curious, but what are your intentions with the lot long term?

Rosalyn Helton · Answer

oh and weddings. Rustic is so in right now. You could rent it for  a few grand per weekend. I see land here used for that and they dont even have electric water or a bathroom. They rent port a potties and still book for around 2500k per wedding.

Matthew Fortune · Answer

Thanks Mike!

The hunting lease is idea is a great idea. That would definitely cover the taxes.

It is full of a mixture of mature trees. I have had a timber guy look at it and says it could be cut but timber prices are awfully low right now. Plus, I need to look into what kind of taxes I will have to pay in the income generated off the sell of the timber. Any knowledge on that?

My long term goal is to hold it and either sell it for retirement,( counting on appreciation) or cut the timber when I am older and replant.

Turning land into an income producing asset??

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