Ranch Investment Property

2 Replies

Investment Info:

Other buy & hold investment in Floresville.

Purchase price: $270,000

Cash invested: $60,000

Purchased a 33 acre small ranch that that encompassed an old single wide, 1940's farm house, and many other outbuildings. Negotiated minerals and water rights on the property, removed the single wide on the property, rehab-ed the farm home ($50k), added a stock tank with fish, repaired water well, and changed tax evaluation to 1D1 Wildlife to lower property taxes substantially. Over $150K equity gain, holding to rent out to specialized renters that pay premium for these types of properties.

What made you interested in investing in this type of deal?

Large equity gain, low taxes, hold due to increasing equity, and specialized properties for renters.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Special lenders and I am an expert Realtor for these type of properties.

Just did a 2 year contract for $2300 a month, carrying costs are lower since taxes are below $1,000 a year due to evaluation...  Here is what the calculator spit out without equity gain - 

$2,300.00 MONTHLY INCOME

$1,864.10 MONTHLY EXPENSES

$435.90 MONTHLY CASHFLOW

4.94% PRO FORMA CAP

$21,010.00 NOI

$79,500.00 TOTAL CASH NEEDED

6.58% CASH ON CASH ROI

7.78% PURCHASE CAP RATE

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