How to make money with vacant land Part 3 â€“ Residential Rentals Edit
This coveted lands post is part three of a series on how to make money with vacant land. In Part 1 and Part 2, I covered more on rural situations and infill situations. Now, in this article let's cover what to do with properties that have more of a residential rentals type. So you're looking at buying land or maybe you already own land that would be a good fit for residential use. So putting a house or a trailer or some sort of structure on there to live in or stay in but you're not ready to do that yet. How can you make money with your land while it's sitting there? You got acreage out the middle of nowhere and you want to make money on your acreage. How do you do it? Well, you can take that property and turn it into a cash flow positive property by leasing it out. I'm going to talk about two ways to lease it out in this article for essentially residential use.
The first one is just more of a long-term lease. OK so if you know someone or you can even post out there as an opportunity for someone to lease the land as a living space and you may have a trailer on the property already you may not. It doesn't matter what you do need to do is check with your zoning. So you make sure your zoning allows you to put trailers or other things like that on a property or camp on the property.
You also need to make sure that you have no covenants or restrictions on your property that would prevent you from using it as I'm going to describe. If the covenants and the restrictions and the zoning are all free and clear for you to
do these things then great. I'll talk about how you can make money with that property.
So the first step is doing a longer term lease and by longer term I mean longer than a month and it can be a headache to do shorter leases than that. I know but you can do leases that are a month a year two years longer whatever there's someone who wants to live on land right now in our country. There is a huge housing shortage for affordable housing, especially in certain markets. And what has happened is people have moved to mobile home parks but the mobile home parks are getting more applicants and they can handle. And not many people are able to find availabilities in mobile home parks. And there aren't many new mobile home parks being built so you can help to solve this problem and you can make some cash on your land. If you allow someone to basically park their mobile home on your property and you can offer your land for lease to do that you'll need to make sure you have utilities hooked up so it might cost you some money to have utilities and you'll also need to make sure you've got a road or some access point to where that trailer will be. And that trailer area is relatively flattened out in the trees on it or roofs so they can actually put a trailer physically there. How much of that is done by you and how much of that is done by the person leasing the property is up for negotiation. If you do it yourself obviously you can charge more and are more likely to find a tenant without too much trouble searching for one. So you can put your trailer out there and then put that up for lease. And you know it's kind of a minimal investment and you might even be able to get away with having multiple trailers on the property depending on again zoning restrictions and covenants that are on your property. So if you look into that you might be able to do pretty well. I've talked to people in areas that have basically no zoning no restrictions that have done this and they've taken land that's now you know super valuable and they've been able to generate returns of 10 or 20 percent cash return on their investment the land by leasing it out for use with mobile home renters. And it's great it's a win-win You win because you have land that otherwise be sitting idle and other people when because they get housing that's affordable and they get to be in a beautiful location while they enjoy it. So that's option 1 a long-term rental. Typically mobile homes could also be a trailer or you know a camper or. And then option two is a short-term lease scenario and this can be done with RV's and you don't need as many utilities for someone to come in with an RV. Most RV's even have generators so you can offer your property as an RV staying spot for someone to stay for short term. If you have electricity, even better.
Basically, people get tired of camping and KOAs are places that are crowded and you can offer your property you can put it up on Airbnb or you can put it up on Craigslist or you can put it up on your campsite Web sites and list it as a place for people to stay short term. It's a great option. The main problem with it is you have to kind of monitor it and make sure that people who come to stay pay for it and it gets cleaned up afterwards so there's a little bit of maintenance involved and it's not as easy if you're absentee but if you live in the area it's something to consider the next option is to actually own a camper or trailer and to have that on the property and then to Airbnb the property. Now I would recommend having power and running water or some system for water you could haul water in and hopefully at some place to dump the sewage but if you're using a camper trailer you can obviously move them to dump the sewage in between uses. But on Airbnb, a lot of people are willing to pay a decent amount to stay in rustic accommodations like this. If you make them cute so if you hook up a bunch of you know twinkle lights or lights late Christmas lights around and you put up a picnic bench and you make it into kind of a rustic hipster cute place. People will pay a lot of money for it.
You can also build kind of unique structures and then lease those out on Airbnb for people to stay in for short term. I've seen people do hobbit houses I've seen all kinds of weird stuff that you know they weren't even hooked up to utilities they had they had. I think they might have had a septic but didn't have power and it didn't have you know the heat was done by wood burning stove. But you get the idea that lots of creative things can be done to make your property kind of a quirky or cute or cool place to stay and people will pay a premium for that. I think the hobbit house one people were paying like 200 dollars a night or something crazy to stay there. And you just need to hire someone or you yourself to go in and prepare the property for each new guest.
So that's it, those are some of the ways you can make some cash with a residential property. And it doesn't have to be right in town. It can be up to probably an hour or an hour and a half outside of town. Once you get farther than that it's going to be tough to find someone who wants to lease the property because that's a long commute to get to town. But you can make money with your property. It doesn't have to sit there idle it can be a cash flow positive asset it can be something that gives you income and is a nice investment and hedge against inflation. At the same time stay tuned for future posts on how to make money with your vacant land.
How To Make Money with Vacant Land Series How To Make Money With Vacant Land Part 1 – Rural Leases How To Make Money With Vacant Land Part 2 – Infill Land Leases How to make money with vacant land Part 3 – Residential Rentals How to make money with vacant land Part 4 – Green Energy Part 5 – How To Make Money With Vacant Land – Easements Part 6 How to Make Money with Vacant land – Minerals Part 7 How to Make Money with Vacant Land – Plants
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