So I was approached by an acquaintance about buying a nearby farm that I had made an offer on a couple years ago which they turned down.
Could probably buy the place for $190,000
Can generate $5,600 annual income from the place after paying the property taxes.
There really shouldn't be any other expenses as it's bare farm ground with a little bit of wooded area.
So that's just about 3% annual return.
We've got that money sitting around in cash and CD's earning little bit of nothing.
By spending this money we could get ourselves another +/- $4,000 per year spending money.
We would also own a pretty decent asset that would surely increase in value by $40,000 or so in ten years.
Real estate like this is not hard to sell and turn back into cash pretty quickly either, if you're not too greedy.
So the conundrum is ..... Is it worth reducing our "dry powder" cash significantly to improve returns on it?
There is a certain amount of comfort in having that liquid cash laying around, and as a retired guy I'll never build a pile of cash like that again without selling something.
Just something I'm kicking around.
Could probably buy the place for $190,000
Can generate $5,600 annual income from the place after paying the property taxes.
There really shouldn't be any other expenses as it's bare farm ground with a little bit of wooded area.
So that's just about 3% annual return.
We've got that money sitting around in cash and CD's earning little bit of nothing.
By spending this money we could get ourselves another +/- $4,000 per year spending money.
We would also own a pretty decent asset that would surely increase in value by $40,000 or so in ten years.
Real estate like this is not hard to sell and turn back into cash pretty quickly either, if you're not too greedy.
So the conundrum is ..... Is it worth reducing our "dry powder" cash significantly to improve returns on it?
There is a certain amount of comfort in having that liquid cash laying around, and as a retired guy I'll never build a pile of cash like that again without selling something.
Just something I'm kicking around.
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