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When you think of rural real estate, you think of farms, ranches, land, lake and riverfront, timberland and mountain properties, and recreational properties. But many real estate investors do not think about this option. There are many business and income opportunities in rural homes, land, and country properties. Before you find a property, you will need to define what type of rural property you are interested in and in what geographic location. Are you interested in raising livestock, game-hunting, producing crops, or horse ownership? Or do you want a large property where you can keep many animals or an opportunity to own a Bed and Breakfast (B&B)?

When considering rural properties, there are some factors that you should keep in mind, such as trespassing, the weather, neighboring properties, and income revenue streams generated by the property. The level of importance of these considerations, however, will mostly depend on land use.

With rural properties, most investors take advantage of either the agricultural exemption for managing livestock where you only pay a fraction of property taxes, or the property being run as a business, which means anything you buy for it can be deducted from your taxes. Of course, you need to check your state laws, because each has different tax benefits. You should also consult with your tax adviser.

There are also government programs that will assist you in owning rural real estate. One such program is the Crop Reduction Program (CRP). This program was started because there was an overabundance of crops being grown, so the government pays landowners not to plant crops. Buying land in CRP areas is a great way to get instant returns on your rural land investment.

Smart investors buy rural real estate near developing areas that offer future potential to sell or subdivide the properties. Most of these properties are going to be some distance from the city. To find them, you can consult the Internet to see what's available. Narrow your search to certain towns and counties. You will need to educate yourself on what the price per acre is. Speaking to a local Realtor® that specializes in rural properties will help you in this process. Some of the best investments are rural areas that have the potential to become commercial properties. You will need to drive by and look at some of the areas and places to get a sense of what you want and what might bring the greatest return. Again, consulting a commercial agent may be of great benefit to you.

Here are some additional ways to generate extra income from your rural properties: through wind-generating farms (wind mills), rock quarries, leasing the land for hunting and fishing, harvesting timber, livestock management, growing crops, billboard leases, leasing highway frontage to businesses, renting housing, gas and oil production, and cell phone tower leases. Not all tax breaks will provide you with cash flow, but every little bit helps. Ethanol is another up-and-coming revenue-producing idea. With high gas prices, ethanol is a great alternative and another great investment.

Also, with more and more baby-boomers retiring and families taking vacations, investing in outdoor properties that can be used recreationally is smart. There are many investment opportunities to use recreation properties for hunting, fishing, photography, rock-climbing, biking, kayaking, and camping. Of course, you will need to check any applicable laws in your area before proceeding.

Recreation-buyers are holding land for appreciation and developers are purchasing to meet the needs of buyers who want to live in the country. Many buyers are leaving the urban city jungles to raise their families in rural areas. It makes sense to buy rural properties and hold them because eventually the population will spread and the land will appreciate. If you buy the right piece of property in the right area, you can always sell the property to a developer at a later date. Right now there are also foreclosure opportunities in rural land farms and ranches. Investors should consider these investments as well.

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