Someone who is good with renting and real estate please answer this question!
If I buy 220,000 worth of mostly plain farmland, and fix it up and make it ready for renting to a farmer(s), make a 10-year contract with the farmer, and make rent 4000 dollars a month, use the first portion of the rent (5 years) to pay off the 220,000 of my loan, what could go wrong?
4000X12X5=240000 (enough for the loan + interest I’m guessing?)
4000X12X5=240000 profit (After the other 5-years)
And I also realize that I have MANY other fees when it comes to a thing like this, so there is no need to tell me that.
These are all estimates obviously, but the prices for rent and the farmland I have confirmed (they are much higher, since I’m in California, this is just an example), and the other small fees I could handle myself, I am just speaking of the loan-rent-profit.
I know it’s not a 100% problem free plan, but is the chance of profit good?
What could go wrong? Complications?
Thank you 