Bryan~Thanks for your reply. I know I'm jumping the gun quite a little bit. I really do appreciate the heads up, as I know it would be in my best interest to be prepared as much as possible before I make my proposal. This open land is part of a little homestead, there are at least three houses and a barn on the property. I know they have well water, what I don't know is what that means exactly. They're obviously on the outskirts of town. Recently, I've gotten positive feedback from every resident I've spoken to regarding a CSA operation, so I am currently leaning to going with that approach, and starting small with the flowers as a sideline. The local government may be able to offer some assistance, at least spread the word in the town newsletter. If there is enough interest, I would have a diversified base of potential customers to begin with, between the CSA, the farmers market, and the florist. He mentioned zinnias, my floral instructor expressed an interest in cut branches of woodies (fall), so I am getting a sense of what the local market is looking for, and when. I need to do much more research and planning before I begin. Yeah good luck, I'm gonna need it.

Due to the way the capital gains law is structured, you should try to avoid listing a joint owner (non-spousal) of RE assets that have appreciated. I don't believe they get the critical full "step-up" basis that an inherited asset would receive. For those with larger estates, it's crucial to pay attention to the changing limits on Federal Estate Taxes. The limit is $3.5M in 2009. In 2010 there is NO limit (your state of domicile may still have estate taxes due, however). If Congress does nothing the Federal Estate Tax limit reverts to $1M in 2011. Although there is talk they will keep the 2009 limits, NOTHING has been actually decided. I've been the executor of a will and the trustee of a Trust. There is no contest - a trust is easier to close than a will. That said, I mean a **properly done trust** - not a boilerplate document created on the cheap by someone who couldn't be bothered to ask the necessary questions before creating the trust. Our MIL's trust, and our own RLT, was created by an excellent attorney for $2500 flat fee (apiece). This included over seven hours of pre-trust meetings to establish what each trust needed to be, creating not only the two trusts but also the necessary additional documents: pourover wills, financial power of attorney, durable healthcare power of attorney. The attorney also filed the trusts and RE deeds in court to transfer the largest assets to the trusts (we were responsible for transferring the bank checking/savings and brokerage accounts). Neither us nor my MIL have what I'd consider complex financial situations. Nonetheless, the attorney took a great deal of time to clarify goals and customize each trust so that we're fully confident they reflect our individual preferences. I apologize for drifting OT, but for us, a trust will make settling our estate infinitely easier for our heirs.

The one thing I would add is don't let anyone (realtor, builder, brother-in-law) tell you that a lot is 'OK'. It's very important to do as much of your own due diligence as you can when considering your future home. We were once showed a home across the street from a sewage treatment plant. It was an ideal location for us, being very close to our son's school. We were assured by the realtor that there was 'no odor problem'. Over the next 11 years, we had the opportunity to drive by that neighborhood every day as we brought our son to school. It reeked! Outdoor activities would have been impossible many days. The realtor either didn't know, or outright lied to us. There are many tools available to check out the neighborhood. Many areas have a GIS site (Geographic Information System) to check things like flood zones, topography, crime stats, even soil types. You can zoom out to find out what else is in the area, such as a hog farm you didn't know existed. It's not a bad idea to check with the local city/county to see what kind of future plans they have for the area. You don't want to find out about the new Interstate or airport after you've built your dream home. Maybe I'm paranoid, but I never consider a parcel unless it has a current 'perk' (percolation) test for a septic system. There are work-arounds, but they are expensive, and sometimes downright ugly. Who wants a mound system in the front yard (because there wasn't room in the back)? If the lot is on city sewer, then it's not a consideration.

If you're thinking of this as investment, that looks different. The answer to your "which is better" question is "probably neither." If you build new, I can almost guarantee that you'll lose money on the resale. If you buy existing and renovate, you'll be lucky to break even. And don't forget that every renovation you spend your cash on represents cash you can't invest somewhere else. I'm not an expert on this, but based on what I've seen friends succeed and fail at, there are two ways I know of (there are no doubt others I don't) to make a profit on your personal home. 1. Ideally in a cool market, buy an existing, well maintained home with desirable design in a desirable neighborhood where homes are appreciating. Live in it and maintain it well. Don't attempt any renovations whatsoever. When values are approaching your profit goal and the market is hot, but before the decor and design you bought would be considered "dated," clean it, paint it, buy a new range and a big refrigerator, and sell it. Repeat. 2. Buy a distressed property (foreclosure, estate sale, similar) with fundamentally desirable design in a desirable neighborhood where homes are appreciating. Repair what's broken. Live in the home and maintain it well. When home values in the area are approaching your goal, no sooner, decorate and update based on what's then popular and what's selling. No layout changes, no wall teardowns, no major renovations. Sell when the market is hot. Repeat. Either way, if profit is your main motive, or even a significant one -- from the second you start house hunting, your house is never your home. It's always your potential buyer's home. Don't buy a house because you like it, buy it because your buyer will. Don't change things because you want them that way, change them because your buyer will. If you're thinking in terms of what you need or want in a house (main level bedroom/bath, open floor plan, brick facing, and so on), you're already on the wrong track. I watched that happen to a friend some years ago. She had loads of fun renovating her house, but she got almost none of her costs back when she sold it. She would've been better off to have spent the renovation money on a couple of fun vacations.