income producing pole barn??

The Industrial building re-use thread got me thinking... if I live in suburbia in a nice school district... there's a lot of rural land 5-10 minutes away in the next town out (cheap taxes, not a desirable school, etc.).

Rather than buying an industrial building and all the potential zoning/environmental/etc. issues that can come along with it, I've given thought to buying an existing rural country acreage with a pole barn and crappy house on it. At least in my region they are fairly common and can be had cheap (relatively). Basically I'm thinking rent out the house, and keep the pole barn usage for myself.

House rent pays some income (any is a positive, the overall purchase would be a cash deal).... and I get a personal use barn/storage whatever.

Anybody do anything like this?

I'm thinking the long term payback would be nice on having storage for projects/parts cars/truck/trailers/etc. without having to have all the "junk" at my house. I'd keep my primary tools/garage stuff at my house for ease of use, since it would be a pain to have to leave my house with 2 small kids to wrench... but it would be nice to have a place to tear cars apart or leave junk on the weekends.

I think this is called, "The Australian Plan."

Sounds like a plan, only problem I can think of is that the kind of tenants that would attract are the kind you have to make sure aren't setting up a meth lab / grow op

You, as the landlord, might have to cover the power/gas bills if you use either utilities.

And make sure they are not using your stuff for flea market fodder.

RossD wrote: You, as the landlord, might have to cover the power/gas bills if you use either utilities.

That's true, though I suppose a split service panel on electric shouldn't be too hard. ...I probably wouldn't even heat the barn aside from maybe a salamander for quick heat and a cast woodstove/burner if I'm going to spend time there for more than an hour or so). With well water I could feed the well power from the "barn" service so it's "free" to the home occupant.

This is fairly comon where I live in Central Illinois. Farms get consolidated so there are all of the farmhouses with complete farm equipment buildings. A given farmer may own 2 or 3 of these or they lease their farmland to a larger famer. They rent the house but maintain rights/access to the sheds equipment buildings. The just aren't part of the lease.

Seems to work well.

Keep in mind you will be getting a Non Owner Occupied loan which has different qualifying criteria than regular loans.

Tougher underwriting, usually larger down payments and higher interest rates. Not bad rates, just higher.

carguy123 wrote: Keep in mind you will be getting a Non Owner Occupied loan which has different qualifying criteria than regular loans. Tougher underwriting, usually larger down payments and higher interest rates. Not bad rates, just higher.

Not concerned about that... this would be done on as a cash deal, or an asset backed short term loan. The taxes for non homestead will be slightly higher, but the rural rates (and assessed value) or very low anyways.

In reply to carguy123:

or there's the part where the OP said it would be a cash deal.

I got lost on "income producing pole"

JohnRW1621 wrote: I think this is called, "The Australian Plan."

I did exactly this as John is stating, although now we are planning on moving to the shop when I get the house sorted

put a big fence between the house and barn to clearly tell the tenants what is 'theres' and what is not.

1. Buy Pole Barn. Add Dancers.
2. ???
3. Profit.

Dr. Hess wrote: 1. Buy Pole Barn. Add Dancers. 2. ??? 3. Profit.

This is Grand Rapids, Michigan. We have no strip clubs, only bikini

Grtechguy wrote:

Dr. Hess wrote: 1. Buy Pole Barn. Add Dancers. 2. ??? 3. Profit.

This is Grand Rapids, Michigan. We have no strip clubs, only bikini

Haha.. actually I'm looking around the Lansing area (moving there).

That said, I've often thought that a high end strip club located just outside of the GR ordinance would make a killing. Run discreet Towncar service to and from all the hotels in the downtown conference center area. Lots of pent up demand (from the religious repression) and outsider travellers in that town for business and such.

I have nothing to add to the money barn scheme.

But I lived in Lansing proper for about 4-5 years, and I loved the city. Let me know if you want any tips on the best places to eat, drink, etc.

Lansing is home to the best breakfast place in the world.

If you like riding bikes, motorized or pedal, it's a great place to live.

Ha. My dad grew up in Grand Rapids and Beaver Dam. My grandfather was minister at the Christian Reformed Church in either GR or Beaver Dam. I forget. For the rest of you, the Christian Reformed Church broke off of the Dutch Reformed Church because the Dutch Reformed Church was too liberal.

Dr. Hess wrote: Ha. My dad grew up in Grand Rapids and Beaver Dam. My grandfather was minister at the Christian Reformed Church in either GR or Beaver Dam. I forget. For the rest of you, the Christian Reformed Church broke off of the Dutch Reformed Church because the Dutch Reformed Church was too liberal.

The son just finished at Hope College in Holland - Big rivalry with Calvin in Grand Rapids (not to be confused with Big Rapids or Eaton Rapids).

I have heard more "broke off" and "reformed church" from him as he has explained it 50 times and my wife and I still get confused.

My grandfather went to Calvin. Had to be in the 30's.

bastomatic wrote: But I lived in Lansing proper for about 4-5 years, and I loved the city. Let me know if you want any tips on the best places to eat, drink, etc. Lansing is home to the best breakfast place in the world. If you like riding bikes, motorized or pedal, it's a great place to live.

Yeah I love Grand Rapids and have lived here 10 years, but I actually grew up just south of Lansing and have family/friends there so am looking forward to returning.

For breakfast, I presume you're talking about Golden Harvest?

the only part i don't get is why would you want to rent the house out to someone else when you could live in it and be right next to your shop and everything in it at all times?

novaderrik wrote: the only part i don't get is why would you want to rent the house out to someone else when you could live in it and be right next to your shop and everything in it at all times?

I'd wonder the same, if the house isn't too crappy for the SO why not move in and maybe rent out your present house for extra income. I used to rent a large building about 5 miles from home, the extra space was great but it became a PITA commuting and ya always left tools or parts at home.

fasted58 wrote:

novaderrik wrote: the only part i don't get is why would you want to rent the house out to someone else when you could live in it and be right next to your shop and everything in it at all times?

I'd wonder the same, if the house isn't too crappy for the SO why not move in and maybe rent out your present house for extra income. I used to rent a large building about 5 miles from home, the extra space was great but it became a PITA commuting and ya always left tools or parts at home.

xflowgolf wrote: ... if I live in suburbia in a nice school district... there's a lot of rural land 5-10 minutes away in the next town out (cheap taxes, not a desirable school, etc.).

School district.

In reply to neon4891:

gotcha