Rental-Agriculture Tax Combo
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A discussion about optimizing land usage through short-term rentals (Airbnb) while maintaining agricultural tax benefits through cattle grazing.
Property Performance Details
- Location: Marathon Ranch (marathonranch.com)
- Monthly Revenue: $13-17k gross
- Property Size: 20 acres
- Current Usage: Short-term rental + cattle grazing
Financial Breakdown
- Gross Monthly Revenue: ~$15,000
- Operating Costs:
- Property Management: 20% of revenue
- Cleaning: $300 per stay (~$2,000/month)
- Assumed Mortgage + Utilities + Taxes: ~$7,000/month
- Net Monthly Profit: ~$3,000 (20% margins)
Return Metrics
- Cash-on-Cash Return: 5-8% annually
- Projected Total Return: 15-20% annually (including appreciation)
- Tax Benefits: Reduced property taxes through agricultural use
Unique Property Features
- Dual-purpose land use:
- Primary: Short-term rental
- Secondary: Cattle grazing from neighbor's cows
- Guest Experience:
- Wake up to mooing cows
- Natural, peaceful environment
- 20 acres of space
- Modern Amenities:
- White kitchen
- Contemporary design
- High-end finishes
Key Learnings
- Initial investment was "7 figures"
- Takes time to build Airbnb rankings and reviews
- Currently has 40+ five-star reviews
- Property is consistently booked
- Agricultural use provides tax advantages while enhancing guest experience
- Important to balance development with maintaining natural appeal
Considerations for Expansion
- Potential to add more units (like Jupe tents)
- Concern about disrupting current peaceful environment
- Need to maintain agricultural tax benefits
- Market uncertainty affecting expansion plans
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.