Leasing my Land

[ultrarunner]

I’m in the same situation but zoning has changed greatly limiting options… what do you do with a paved and fenced parking lot when the city’s new zoning prohibits using as a parking lot?

Businesses are still closing and plenty of vacant property now subject to a special vacant parcel tax… certainly can’t say a vacant parcel consumes more city services.

Real Estate has been my long game and I’ve been through several boom and bust cycles.

I’m guessing as the property is inherited a sale for the market value at the time of transfer would avoid taxes due to stepped up basis?

Of course a 1031 exchange can kick taxes down the road too.

In the back of my mind I thought you might subdivide and build spec homes but I’m clueless on the viability of such an undertaking at present location.

Shifting maintenance to the neighbor sounds good if the plan is to hold.

 

[EddieWalker]

I’ve built a few spec homes and might do so again, but when I run the numbers, I’m probably better off splitting it up and selling it in lots.

But I can wait and randomly mention to realtors that I know, that it could be bought for the right price. I just don’t know what that is right now.

If somebody brought an offer, everything could change.

 

[ultrarunner]

I put the word out far and wide to local and commercial brokers over the last 3 months and not a one was upbeat... instead the replies I received showed years on market and price reductions...

The best said be flexible, willing to carry the note and expect 2 year escrow as no one will close prior to locking in entitlements.

In 2020 the city wanted to lease it for a small house village but that did not go well with the community or uncle.

Uncle wants me to buy him out but I'm not as young as I was and like many, I'm looking to divest myself of property inside city limits.

How well do you know the rancher?

 

[EddieWalker]

I don't know him very well, but I know the guy who runs the ranch pretty good. He's who I'm dealing with, and he's gone above and beyond in helping me out with the land and the cows.

I don't really care what he does with the land for the $600 a year. It's a one year lease, and if I sell it, I'll give him back his money, or make the sale happen after the lease is up. From what I can tell, there isn't a tree on his place, it's all pasture land as far as you can see. I've never seen a deer on my 40 acres, and from talking to the neighbors, neither have they. It's really good pasture land when kept clean of mesquite trees. I think I have all the mesquite in the County. It's a horrible tree. I've spent a couple hundred bucks buying chemicals to kill them, but I've barely made a dent. If he mows it a few times a year, that would help a lot in keeping the mesquite from spreading.