All Forum Posts by: Eric Mcginn

 How do you decide what areas to focus on?

 Thank you for this explanation, that makes sense. I wonder what the long term cap gains taxes are vs regular income taxes. 

You’re probably right that it’s not worth holding just to avoid some extra taxes, because with that money I could to it all over again potentially. 

I know ultimately I need to ask my accountant but he’s busy and expensive to ask preliminary questions. 
I won some land at a county tax auction. My agent has done some research and determined that I’m able to sell it as soon as they mail me the deed and there’s no holding period. 
I would love to improve / build on the land but it’s just not in the schedule for the next few years so I’m thinking it’s best to sell it. Afterall I purchased it as an investment. 

But someone told me that capital gains taxes on a one year investment would be terrible. Any truth to that? 

If I sold it and bought another vacant land property that would be more useful to me to hold, would I then be able to defer those taxes? 

Details:

San Bernardino County California

Bought 10acres for $14k

Looking at asking $40k-50k 

I’d like to buy a small parcel with lake rights in Lake Arrowhead for ~$30k so we can use the private lake. 

Thank you for any guidance in navigating this. I've only done BRRR strategy so I've never sold real estate before.

 What? No

I have a duplex in Maine that I have a ton of equity in. It also has a mobile on the property, all three units are long term rentals. 
I want to use that equity to get a loan to pay for a well, septic, and mobile home at a property I bought in Joshua Tree, San Bernardino County California. 
I've never done a HELOC before, is that what I should be looking at for this project?

I got myself 10 acres in Joshua Tree at auction. The location is decent enough that it sure seems to make sense to try and get a permitted house there. I'd need a well, ~$50k and solar and site prep septic / pad ~$50k and a used manufactured home with a HUD tag for $50k delivered. And I can do the rest.
But I ain’t got $150k cash sitting around. 
Can I get a bunch of cash to buy a used mobile home via a new construction loan? My portfolio does currently have two mobile homes so I generally know the difficulties in financings then compared to traditional homes but I’ve never done a new construction loan so I’m not really sure what’s allowed. 

Ultimately I could rent it long term for $2k and having the primary residence would allow me to do a lot more with the property including two ADUs. Comps don’t seem to be available for under $350k for even just a mobile home on 5 acres. 

Thank you for any insight on how to start with this potential project. 

 That would be a whole lot cheaper! Unfortunately the county doesn’t allow it unless it’s grandfathered from the 70s. 
I was considering a tiny home and still might build one afterwards but yes I'd definitely be looking at a used mobile home. Seems like $40k would get me one with a HUD tag. Plus solar ~$15k plus septic ~$8k plus a little site prep and trenching and transportation and permits $15k

So $78k + roughly $50k for the well + $14k land = $146k 

And there aren't any available on even half the land for under $350k so it seems like there's a lot of potential. I'm just having a hard time seeing how to financing works, I'm used to doing commercial loans on multi units or SFH, never done new construction or development.

Thanks for the response! 
I’d like to put a structure on the property but my understanding is that the county won’t approve permits until there’s water on the property. 
It’s hard to say what equity I have in the parcel, there aren’t as many recent comps for vacant land vs homes. In terms of sold comps, maybe $45k and as far as what else is for sale currently, more like $60k-$80k. I own it outright and paid $14k at auction. 

I got 10 acres in Joshua tree at auction. We will camp on it and list it for profit. But I’d love to do more and per the county that starts with a well. Local companies say 400-500’ deep and $30k-$70k.  I’d like to move forward with it eventually but not sure how to finance? Any ideas?