Quote:
Originally Posted by johnhkc
I have a question for y'all about buying land with trees.
I found some property in central Missouri. The property has a house of approx 1600 sqft on about 150 acres of land. The land is mostly covered in trees, maybe 130 acres.
I'm thinking I could buy the land for $400K, sell my house for $180K (100% equity), sell the trees for $260K then lease out the resulting cleared land for $20K/yr ($180 per acre per year). I net $40K plus $20K/yr and my cost of living is lower.
I am assuming (perhaps incorrectly) that trees would be worth $2000 per acre and that tree buyers would clear everything including the stumps. I'm also assuming that I don't have to "do anything" to make the cleared land suitable to lease for growing crops.
I know nothing about trees or farming. I'm a tech guy.
Does all of this seem plausible or is this one of those hare-brained ideas that only makes sense while sitting in an Aeron chair on the internet in an air-conditioned room while surfing the net with too many tabs open? 
After you stop laughing, please tell me where my assumptions are incorrect.
Thank you. |
Sorry to rain on your parade, but it will cost you $2000-3000/acre to clear heavily forested land. If the lumber is nice you may get it for free but then you'll likely be giving it away.
If you do go through with this you may want to do 5-10 acres at a time and see how your contractors are treating you. There are a lot of sharks out there and you're the chum in the water. Likely there is a good spot that is worth a forester's time and they'll give you a good deal. They won't want to clear the yucky areas for free.
Bottom line, you need a bulldozer for those stumps. A big one.
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