Profit from Recreational Property?

[wildwilderness]

Is there any good way to make passive income off of a recreational hunting property?

I always have a desire to own property for hunting and fishing. I have in the past- it’s just really hard to justify the large capital investment and time to make it work. Financially it has to make sense…


Say you had $1M USD and want a place with some fishing (at least a pond) and at least deer every year- Is there any way to get even a 5% annual return ($50,000) on that money through the property ? I know the hope is the land appreciates over time but you can’t cash that out til you sell.

I have financial investors that can essentially guarantee 10-15% return on cash so putting that into Land is technically a “loss” that’s why I sold my last property…. Big swing in cash flow from monthly expenses to net profit! I now pay a hunting lease for less than half of what my operating expenses were on the property, and make way more off of interest!


I know the secret to everything is Buy low or inherit but I’m sure there has to be a way to make a legit business out of a property that can at least pay for itself? Any novel ideas that you have done? Or know of? I know a grazing lease and a farm lease of tillable areas brings some money but really that’s pennies on the dollar-

I’m looking for something that can make $50k/ year off of a $1M investment (give or take) with minimal time on my part (not opposed to hiring employees to work if it’s profitable)

 

[NoStepOnSnek]

So you probably won’t make back $50,000, but you can get passive income by leasing out a piece of the property for hay. Or you can do some CRP or other government programs that won’t make you money but will erase taxes

 

[375Fox]

Probably not. The value is in the land itself. It’s not paying a return until you decide to sell. I’d look at it more as a safe alternate bank account. It’s not going to go down in value. You can sell timber every ten years or so with a selective cut. You can rent out some ground to the farmer. If you’re lucky you’ll get a lease payment or royalty payment for mineral rights. Look for a state with low property taxes and enjoy having the land. If you don’t get any enjoyment out of having land give the money to your financial advisor.

 

[Scott CWO]

Is there any good way to make passive income off of a recreational hunting property?

I always have a desire to own property for hunting and fishing. I have in the past- it’s just really hard to justify the large capital investment and time to make it work. Financially it has to make sense…


Say you had $1M USD and want a place with some fishing (at least a pond) and at least deer every year- Is there any way to get even a 5% annual return ($50,000) on that money through the property ? I know the hope is the land appreciates over time but you can’t cash that out til you sell.

I have financial investors that can essentially guarantee 10-15% return on cash so putting that into Land is technically a “loss” that’s why I sold my last property…. Big swing in cash flow from monthly expenses to net profit! I now pay a hunting lease for less than half of what my operating expenses were on the property, and make way more off of interest!


I know the secret to everything is Buy low or inherit but I’m sure there has to be a way to make a legit business out of a property that can at least pay for itself? Any novel ideas that you have done? Or know of? I know a grazing lease and a farm lease of tillable areas brings some money but really that’s pennies on the dollar-

I’m looking for something that can make $50k/ year off of a $1M investment (give or take) with minimal time on my part (not opposed to hiring employees to work if it’s profitable)

Obviously depends on the property and location. We bought 1100 acres of pasture and 190 acres of irrigated crop fields in an area I hunt mule deer several years ago because I didn’t want one of the other neighbors to buy it and close it off to our hunting. I worked out a deal with another neighbor to lease the pastures for grazing and the irrigated fields for corn and alfalfa. I gave him a break on the leasing price in exchange for hunting rights on his owned 5000+ acres. Last year, we sold our land to him for a decent profit but retained the hunting rights through a 20 year easement. Everyone is happy because he doesn’t hunt. I will use this model again!

 

[wesheltonj]

50k, not likely unless your capturing minerals. Unfortunately, production decreases over time, not to mention property taxes on production, federal tax on production, costs of production, income tax and you only get a 15% depletion allowance.