All Forum Posts by: David Wheat

@Jaleel Phillips I listened to the RDPD audio book during my commute in between podcasts.

@Account Closed Yes, I've thought about this for a long time. It's not so much THAT I'm working, it's WHY I'm working. The energy I pour into those 40 hours makes many other people very rich. That same energy redirected toward activities that interest me would enrich me and mine. I have had moderate personal success at waking up at 0500 and grinding through Udemy tutorials, or spending three hours a week working with a vocal trainer after I get home, or staying up all night to work on a website, or driving 2.5 hours on Saturday morning to Daytona to "intern" with my patient friend who renovates. If I could spend 40 hours doing any of those uninterrupted (or at least on my own terms), I'd be so much further along.

Short term: Buy, Live in, renovate, flip/rent

Long term: My magic 8 ball says "Reply hazy. Try again later."

Once upon a time, there was a 5 acre parcel in Marion County, Florida. It was split in two, bequeathed to heirs, then eventually sold to myself and my nephew. He is living on the smaller parcel. My parcel is vacant and essentially unimproved. Here are the facts:

• 5 acres total

  • 5 minutes from HITS

  • 18 minutes from WEQ

  • 25 minutes from downtown Ocala

  • 31 minutes to UF

  • Zoned A1

  • Nice neighbors

  • One driveway ~800’

  • Half cleared half wooded

  • Fertile soil

  • Laughable fence

  • Lots of dying water oaks ~40 years old

  • 3.72 acres owned in full by me

    • The parent parcel

    • No home

    • No well

    • 30 year old septic (1000 gal, worked fine 2 years ago)

    • Existing electric meter

    • Cable internet access

    • 2015(?) 12x10 lofted shed

    • Beautiful 50’ sycamore

    • Tasty pear tree

  • 1.28 acres owned by nephew (mortgage on home)

    • 2017 964’ single wide

    • Working well (4” submersible)

    • Working septic (vol unknown)

    • Existing electric meter

    • Cable internet access

Since buying my property in 2016 my vague yet rapidly solidifying plan has been to build my forever home, fence it for horses and build a four stall barn, bring in a nice single wide or better, and rent the single wide out to equine enthusiasts during HITS and such. I’ve got plans and drawings and improvement costs all laid out. My nephew’s plans once paralleled mine, but he has a growing family and needs a bigger place and suddenly wants to sell. I would prefer not to sell my property because there’s a lot of potential for long-term profit and the eventual winter retreat. I would move my wife, daughter, three indoor cats, and large dog into the trailer until we could get our forever home built. She Who Demands Not Very Often demands a screened porch be built for litter boxes and cigarettes. She has spoken and so shall it be.

At the same time, the market has improved and he thinks he can get a good price for his home. If my ROI is the same as what he's expecting for his, I'm willing to sell. Plus I really don't like the idea of a mystery neighbor. I'll be sad to lose the place, but I have no roots here other than that property and my job.

Here's my conundrum. I can afford and qualify for an FHA loan for the single wide and land, but I'm unclear about my options to concurrently finance the building of a traditional home on my parcel and how that will affect. I think it's going to have to be a construction to perm loan and if I understand correctly, they can't refinance the FHA loan because it's secondary market. The county says I can recombine the parcels but that won't matter to lenders, apparently.

I have made it past these checkpoints:

1. Does my wife HATE the trailer?               NO

2. Does his asking price align with comps? YES

3. Do I qualify for a loan?                            YES

Here’s what I’m up against now:

1. Is there a way to

   1. Mortgage nephew’s singlewide and land, AND

   2. Construction to Perm loan on my land, AND

   3. Get both properties onto one mortgage, AND

   4. Recombine the parcels?

2. OR

   1. Mortgage nephew’s singlewide and land, AND

   2. Construction to Perm loan on my land, AND

   3. Maintain two mortgages and separate parcels, AND

   4. Rent full time the singlewide under my LLC and allow usage of part of my larger parcel?

If there is no good way to achieve one of those goals, my decision will be easy.

Any advice/direction is welcome!

Howdy. I'm Dave. I was born in Texas but I got to Florida as quick as I could. I'm a geek who's not afraid to get my hands dirty. I'm always eager to learn something new.

My goal is simple: to produce enough income to break the golden handcuffs of my awesome employer and do what I want with my time. Real estate sounds promising, and I've been learning the basics of renovation on the weekend.

I have a few acres in Marion County, FL and I'm suddenly in a quandary regarding its future. The kid wants to move somewhere cold. We might give that a shot.

I've listened to the podcast for many hours, plus quite a few other finance podcasts. 

Thanks for having me.

Just in case anyone is planning on attending the MCREIA event based on my post, i had the date wrong. It's September 10, not August. Sure am glad I checked before I drove up there!

@Judith Knapp, thanks for the MCREIA tip. I just joined and plan to attend the seminar this weekend on land trusts. Hoping to widen my network.

Investment Info:

Other buy & hold investment.

Purchase price: $19,000

3.72 acre agricultural flag lot
5 minutes from HITS
10 minutes from the World Equestrian Center
20 minutes from Ocala
30 minutes from Gainesville

Septic on site but no well (dried up). Used to be an awful mobile home on site but I sold it cheap for quick cash to pay down debt.

Short term: Would like to fence off and lease for long term grazing, maybe pour an RV pad for seasonal use (HITS)
Long term: Build a forever home and add a smaller home for rental.

What made you interested in investing in this type of deal?

Wasn't thinking about the investment when I bought it. It's close to my job but far enough away to be quiet and secluded.

How did you find this deal and how did you negotiate it?

Bought it from an employee. Rented at first and then bought it cash.

How did you finance this deal?

401(k) loan

How did you add value to the deal?

Let my employee use my tools and drink my beer :)

Cleared a bunch of laurel/water oaks

What was the outcome?

Still own it. Got married and moved an hour away. I get up there when I can, but a family member tends to the property right now. I miss it, and I'm sure it could generate cashflow.

Lessons learned? Challenges?

I shouldn't have sold the mobile home, no matter how poor the condition. The loans offered on this property sans house are unattractive.