All Forum Posts by: Alexander Achim

@Alexander Achim it depends on what your goals are. If you are looking to grow, then sell it. If it provides other value than just the cash, then consider that and it may be better not to sell. What is your goal with the property?

@Dave Foster Thank you for the insight. the 1031 Route sounds interesting and I guess the question would be what type of properties would other fellow BPs chase after. Short term vs long term. The Short term rental is enticing to me just because I can use the property as well but the goal for me long term and short term is to generate passive income and be able to build wealth. Holding the cabin off the bat does generate income but currently a loan around 550k with 7% interest does cut into cash flow a little bit more than 3% rates of yesteryear. With the 1031, say I buy 2 cash and then one with financing, what timeframe would I have to do all of this in from the time of closing on the sale?

0 Votes

Knoxville, Tennessee

Quote from @Steve Neill:

I have done the same, all for the same reasons you did. I'm about the same with respect to build cost but only 67k into the investment. Same region as you and did just under 140k last year, realistic sale price would prob be around 1M to 1.1m for mine, its harder to come by to find buyers these days to pay 10x gross, last spring with lower interest rates would have been a different story. Most investors I know looking back there with these interest rates aren't budging unless there is meat on the bone as there still is a work component to this model and its not for everyone. Building another starting next month hoping to do similar numbers. Correct, lots are very hard to come by that are reasonably buildable and are not way overpriced. If you can really do 185-200k I would keep, look for a new lot and repeat, or just keep with the 150k injected as your COC is still gonna be high. It's harder to find STR's that throw good cash flow these days, I have been looking in multiple markets all across the country. I have also thought about selling and just paying the capital gains or 1031 into something else, but what are you gonna buy or 1031 into to throw that kinda cash at that entry cost? Depends on your mission, income stream or quick cash. I'm wanting to slow down on other things and looking for the income stream.

Good points there . From what I’m seeing , lots are gonna run around 150-250k for something to accommodate a cabin for that sort of income stream there . Even with prices there I think cash flow is highly probable and I guess I could always use some equity to roll into a new project and maybe one day refi for lower rates . Thanks for the comments guys

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Knoxville, Tennessee

Good evening to you all. I am in a unique situation in that I built a cabin in gatlinburg with a total cost to me around 570k that is most likely going to gross around 185-200k in yearly rental income . Cabin is worth around 2 million per latest appraisal and I’m trying to decide if the short term passive income is better or pay the long term capital gains tax and attempt to buy something else .. good lots are getting harder and harder to come by and buying another cabin already built would not be a feasible option given price increases in the area. I also have about 150k cash in this investment .

Any input would be greatly appreciated .
very curious how other investors would approach this .

0 Votes

Knoxville, Tennessee

All Forum Posts by: Alexander Achim

Alexander Achim has started 1 posts and replied 3 times.

Post: Deciding to keep or sell short term rental

Post: Deciding to keep or sell short term rental

Post: Deciding to keep or sell short term rental