I had time to think about this a little more, plus read your post closer too.
I would have to recommend NOT buying this property at this time. Here are some of my reasons:
1) You already carrying debt on a another "investment" property (House). 2) The land is currently renting at an above market rate. I would bet it is more than likely going to drop long before it would go up. 3) Your also talking about financing it for 30 years to make your numbers work. I would NEVER recommend someone finance anything for 30 years. 10-15 is the best and 15-20 is not terrible but 30 is a deal killer. 4) Your thinking a 10% down payment will work. I do not think it will unless your going to tie it to some other asset. Banks know ground is more than likely going to drop in valve in the short run. 5) You stated that your winding down your farming operation because it is not profitable. Do you think that will change in the future??? We are coming off of record high prices for the last 6-8 years. The profitability per acre will take time to stabilize. 6) The ground is Close but not right next to you. So It loses the next door factor to me.
I would look at it this way. If you pay your $24K towards reducing your current debt you will be getting a return equal to the interest rate your currently paying.
We are in kind of the same spot on some ground. We are farming it and have been for 8-10 years. The older brothers that own it are "Thinking" of selling it. Their asking price is lower than it was 2-3 years ago but it would still be double what it was 10 years ago. We all think it is going to get cheaper sooner than later. The landowner and us are playing chicken right now on seeing who jumps first. The only thing that is keeping it from selling right now it they can not put the money in anything else right now and get the return they are getting on the land. Plus the land is fairly inflation safe.
So we are waiting for awhile and I would recommend you do too.
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