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SW MN - mt. lake/windom | Heres some standard numbers for you below, barn cost @ $550k ( didn't include land value) annual op expense @ appox. 70k, annual income @83k -1.66K for downtime gives you a return @11.6k annual. Assuming you put up 30% cash borrow 70%, your opportunity on 165k cash earning 6% is 9.9k
summary - you provide yourself with a $16/hr job (parttime) and your 165k cash returns a 7% return. 20 years barn is fully depriciated. I would recommend developing a bussiness plan including exit strategy and sticking with it. For example, tie contract finishing agreement to barn and not yourself, set objective threshhold goal for actual cash value of site and be willing to exit (sell) when time is right, treat it like a commodity. Five years down the road, if your actual dep = 0, sell and pocket an extra 130k.
where should I send the invoice for consulting services, I charge double for after hour work.
barn 500000
driveway 4500
generator 22000
water 10000
electric 1500
legal/doc. 1200
engineering 3200
landscaping 2000
per. Tile 1500
lp 5000
550900
dep. 27545
insurance 2203.6
interest (385k) 9500
electric 6000
maintenace 2500
taxes 2500
communication 720
yard upkeep 1500
heating fuel 5900
misc 1000
washing 1700
rendering 600
labor 8000
69668.6
income
lease 74000
manure 9000
98% efficiency -1660
net 11671.4
opportunity on
165k @.06 9900
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Finishing Barns
