OPM with Farmland - Is it Possible?

Question

I would love to buy some farmland/woodland for camping and recreation. However as a BRRR zealot, I can't wrap my brain around how to use leverage in this space. For example farm rents might be $20 an acre per year? Maybe a hunting lease for a couple thousand for several acres. And an acre might sell for $100k. I don't see how to make agricultural land cash flow.

thanks!

David Willis · Answer

Henry, thank you for the quick reply. If I understand options 1 and 2 correctly,

waste area is land not suited for farming or development, but keep it for hunting.. ie streams, wetlands, etc. and for home property, search for properties with homes on I can rent, but subdivide off the large acreage for my own use?

thanks again for your help.

Andrew Street · Answer

You’re absolutely right that traditional farmland and recreational land don’t pencil out the same way BRRR properties do. The income per acre is usually too low to support leverage in the conventional sense. That said, there are ways investors are making these types of deals cash-flow or at least carry themselves while the land appreciates.

A few approaches I’ve seen work:

1. Mixed-use strategy (stacking revenue streams)
Instead of relying solely on ag rent, some owners combine:

• Seasonal hunting leases
• Timber thinning/harvest (if applicable)
• Short-term camping/RV sites (Hipcamp, Tentrr, etc.)
• Local farmers who pay premiums for specialty use (e.g., grazing rotations)

Seasonal hunting leases

Timber thinning/harvest (if applicable)

Short-term camping/RV sites (Hipcamp, Tentrr, etc.)

Local farmers who pay premiums for specialty use (e.g., grazing rotations)

None of these individually cover a note, but together they often get close.

2. Seller financing with low initial leverage pressure
A lot of rural land sellers are open to favorable terms — low down, interest-only periods, or long amortizations. That flexibility can make a deal pencil even if income is modest.

3. Buying land with value-add potential
Similar to BRRR, you can create equity by improving the property:

• Adding cleared access roads
• Installing wells or septic
• Cleaning up an old homesite
• Converting part of the acreage to RV pads or glamping sites
These improvements can significantly lift resale value or rental potential.

Adding cleared access roads

Installing wells or septic

Cleaning up an old homesite

Converting part of the acreage to RV pads or glamping sites
These improvements can significantly lift resale value or rental potential.

4. Focusing on local markets where land-to-income ratios are more favorable
Some areas still offer $4k–$10k/acre land that rents reasonably well to farmers or hunters. At $100k/acre, you’re right — cashflow is nearly impossible without a specialty angle.

In short, you’re not wrong about the math on “pure ag” land. Most investors treat recreational/farm parcels as long-term appreciation plays unless they layer additional revenue streams or secure creative financing.

Happy to dive deeper if you’re exploring a specific market or strategy — I work with several investors in this space and have seen a range of approaches.

Chris Seveney · Answer

Typically woodland and recreation land is not money makers, is for convenience and use. I view the same as vacation homes, yes they may provide rental income when not there, but you will use them and they will most likely not cash flow so not great for investment purposes but lifestyle choice.

David Willis · Answer

Hi Henry,

out of curiosity, what types of lenders have you found to be helpful in stabilizing these types of deals? What would a typical deal structure look like? Some initial research suggests 50percent loan to cost, possible 30year options with interest only for some time frame? Or do you purchase with cash in these deals?

Thanks

Henry Clark · Answer

OP do a search on your target areas.  Talk with realtors.

1.  Look for any listing over 1 year old.  No new listings.

2.  Look for properties over xx acres.

3.  In your price range.

4.  Nasty properties.   Example old farmhouse on 20 acres.  To much land for most buyers.  They won’t like the old house or trailer.  Not as much price competition.  Divide the house off and sale it.   You keep the rest.

5.  Recommend as before you look up State Transportation department land sales.

Henry Clark · Answer

OP math won’t work.

1.  Buy a larger piece of farm ground.   Subdivide the waste ground off and keep.  Sell the good farm ground.  Farm ground itself won’t cash flow as you mention.  Our area $250 rent on $10,000 per acre.

2.  Do the same thing with a home property sale. 3.  Look up land auctions by your states road department.  Might happen every couple years.  Usually odd shapes and sizes.   Good for your purpose possibly.