Financing Type to Pull Equity for Next Deal
I used the COVID 401k withdrawal rules to pull money to finance our first property in my husband's hometown south of Fort Worth, TX in 2021. We bought 12.9 acres of raw land with Ag Valuation and Ag Tenant. The property was on-market for almost a year because no one wanted to deal with the tenant situation. We got that handled and put a 3bd/2ba mobile home on nw corner. The city limit is 450ft long front edge of property so we have utitlity district water and business grade fiber internet. 5minutes to main highway and 15 to tollroad into Fort Worth. House is zoned to really good school disctrict.
We are now past the 3yr period to trigger rollback taxes on the one acre we moved from Ag Valuation to build our homestead. Property prices have skyrocketed from $19k/acre to $40/acre in the 1mile radius as area develops. I accepted a new position in Houston and we want to leverage this property to get cash for our next deal.
Owed: land $161,938 at 5.708% 15yr raw land note, mobile $84,096 at 5.9% 23yr note = $246,034 Basis of developing= $81,232. A rough search finds properties with similar house and acreage selling for $550k. A 3bd/2ba mobile on <1acre rents for ~$1600/mo. Our current payment is $2374 since land is 15yr note. It looks like we have roughly 200k equity.
I'm running into issues trying to figure out what kind of financing we would use to get equity out of this property setup. We have an apt with recommended realator next week to confirm value and talk things thru.