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Iowa | Just throwing this out there since people are comparing farm rent to commercial or rental housing. For rental housing it is pretty common to assume that the total rental income of a rental property divided by between 8 or 10 percent is the maximum price to pay for a property for it to "cashflow." If you use those numbers for 15k per acre that would be closer to needing a rent of 1,200 to 1,500 per acre rent... so the old boy wanting $500 doesn't look so greedy anymore does he? | |
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Cash rent vs commercial properties
