All Forum Posts by: Eliannah Linehan

@Troy Zsofka Thanks for the feedback, I considered some of these thing but definitely not all. The occupancy is what I’ve gathered as a conservative average of high and low season, but definitely would need to get quotes on the actual construction cost. 
Seemed like a STR might have more margin in todays market but might be a lot more work :)

Thanks @Jeremy Wirths, that gives me some confidence to continue my research :) 

 I don't have contacts yet, just an area I'm familiar with from visiting for the last 10-15 years - seems like it has potential in the winter for skiing and the summer for hiking, etc. I would need to hire someone (I think) to manage the build and the property since I'm about 2 hours away.

I am new to Bigger Pockets and trying to figure out my entry point into real estate investing.

One idea that is really appealing to me is:

   Buying land around North Conway, NH / Fryeburg, ME ~65K 

   + building a tiny-ish home which according to denoutdoors can cost around ~50K (2b/1b)

    + install water/electric/sewage ~ 28K 

  Total ~ 143K

Then renting it out for $150/night x 65% occupancy = 35,500/yr

I estimate I would pay about $4k taxes, $3k utilities, $4k property mgmt, $1k lawn, $500 snow =  11,500/yr

So, 35,500 rent -11,500 built in expenses = 22,000/yr 

I think the Cash on Cash Return Year 1 would be.... Income / Cost = 35,500 / 154,500 = 23%.. seems like a good number

Or 6.5 years to start seeing profit. Or, use mortgage/home equity loan to see cash flow sooner.

Does this seem crazy? Any advice for a newbie considering this option?