Creating Passive Income with Your Property

September 29, 2020

Income producing property is a great way to offset expenses and allow you to live a particular lifestyle

Using your property to create a stream of passive income is an age old method. What used to be a barter - a night’s stay in exchange for food - has turned into today’s AirBnBs, horse ranches, agricultural plots, and hunting properties. People want what they can’t have out of their own property so if your property has something unique to offer, you can make a lot of money by letting others use it. 

I currently have luxury properties for sale in Colorado with vastly different opportunities for passive income: a luxury home with a guest house in Cedaredge, a 36-acre equine property in Eckert, and a hunting ranch with a commercial lodge bordering the Grand Mesa National Forest. Each of these properties could end up paying for themselves or offsetting expenses if the new owners take advantage of their passive income opportunities. Let’s take a look.

Benefits of Purchasing an Income Producing Property

While a property with passive income potential is often a bigger investment up front, it can not only save but actually generate profit and pay for its operating costs over the years. Income producing properties come in all varieties and types. Some examples include horse boarding, pasture leases, agricultural production, hunting leases, guiding income, conservation easements, hospitality or recreational business opportunities.

Let’s say you purchase a hunting property for $1,000,000, your mortgage is $2,000 a month, and your water and utility bills run you an additional $500 a month. If you rent the hunting lodge out and sell private land vouchers to hunters to use the property for hunting, you can easily cover your mortgage and expenses. 

A self sufficient property can also generate income by saving you money on things you would normally have to purchase. For instance, an agricultural property that grows enough feed can prevent you from having to buy feed for your animals.

Luxurious Mountain Home with Guest House in Cedaredge, CO

This luxury home for sale in Cedaredge, CO is ideal for renting out an experience on AirBnB or Vrbo. It features a 2,400 square foot main home with 5 bedrooms and 4 bathrooms, plus a 1,200 square foot guest house with 1 bedroom and 1.5 bathrooms. 

This property was historically used for a Bed & Breakfast during which the owners generated $47,000 per year--enough income to sit back and enjoy their beautiful surroundings. 

Guests and owners alike can enjoy this luxury property’s close proximity to the Surface Creek Valley, Grand Mesa National Forest, and San Juan Mountains. Those fond of hiking, fishing, hunting, golfing, mountain biking, Nordic & Alpine skiing, horseback riding (property has facilities for keeping horses), and snowmobiling would book a stay in the guest or main house with no hesitation. 

If you’re considering purchasing a property such as this to list on AirBnB, selling the experience is key. Natural light, a custom outdoor water feature/fire pit, stamped concrete patios, and two hot tubs give guests the chance to experience Western Colorado recreationally and at home. 

Learn more about this property here:

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Horse Ranch with Equine Facility in Western Colorado

Situated on 36 acres of land, this equine property for sale in Eckert, Colorado features a custom home, irrigated hay fields, and an equestrian barn perfect for hobbyist and professional horse trainers. This property checks all of the boxes for income generation and self sufficiency. 

This equestrian property offers excellent hay production conditions and water rights, producing enough hay for any animals housed on the property. 

In addition, the horse barn opens the doors to other streams of revenue, such as horse boarding, training, or renting riding facilities. The inside of the equestrian building features a dressage sized 70’ x 140’ indoor horseback riding arena. There is also a large tack room, wash bay, hay storage and indoor & outdoor arenas, and metal pipe fenced dry paddocks with loafing sheds.

The 1-bedroom, 1-bathroom trainer’s apartment gives the owner of this horse property even more opportunity to turn it into a commercial endeavor. The owner can rent the apartment out or use it as a trade for a facility management position. Further, the arenas can be rented to host a variety of equine events, like roping, barrel racing, sorting, horse clinics and more.

Learn more about this property here:

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Recreational Hunting Ranch with a Commercial Lodge

The Bearslide Ranch features 919 acres of prime big game hunting and recreational mountain habitat plus a 6,400 square foot hunting lodge. The mountain property borders the Grand Mesa National Forest and is located in GMU 411. This hunting property for sale offers ample opportunity to generate income.

The commercial hunting lodge boasts 7 bedrooms and 6 bathrooms, enough to host 20 people at a time. Guests enjoy 6,400 square feet of fully furnished rustic interiors, Trex decking, James Hardy cement siding, and fresh exterior paint. This Grand Mesa hunting lodge can be rented or leased to hunters or summer recreators every season. If the property owner would rather treat this as an investment property, he/she can lease the lodge to a hospitality management company instead. 

This hunting property sits in a prime location in Western Colorado, bordering the Grand Mesa National Forest. The 919 acres provide mountainous and rolling terrain, a variety of trees and bushes, oak trees, a section of Ward Creek, and views of the Surface Creek Valley and San Juan Mountain Range. There are many resident elk, mule deer, black bear, mountain lion, and moose on the ranch property, which hasn’t been overly hunted for years. Landowner hunting vouchers could be obtained and sold for profit.

After hunting season, the owner can shift focus to providing ATV tours, hiking & mountain biking trails, horseback trail riding, and drop camps.

This property could also be placed into a conservation easement which would produce a nice tax credit to the owners--offsetting the initial purchase investment.

Learn more about this property here:

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Making the Most of Your Property

While the properties above have clear income generating features, every property, even small, has something to offer. Many Coloradoans don’t have the budget to invest in a big hunting property, a luxury mountain home, or an equestrian ranch property. If that’s the case then you can think of other ways to generate income on a smaller scale, like renting a spare bedroom, selling eggs from your chickens in the backyard, or growing herbs to sell at the farmer’s market. 

You can make money with any property. If you have questions about the properties above or learning about passive income opportunities with any of my other listings, learn more below and send me a message.