All Forum Posts by: John Carbone

John Carbone has started 38 posts and replied 1080 times.

Property is in Eagle Feather Drive, new construction. I couldn't find much comps to compare in Airdna. I spoke to one host with a pool and he said he made $110K, with current interest rate it is 11% COC. It should alteast make 125K for a good return. Will a pool in that area make that?

I would run from that and fast

1 Vote

Quote from @Priya Srinivasan:

Does a 3/2 Cabin with an indoor pool with no view, 7 miles north of Sevierville will work?

I know location and views matter for Smokies. Does a pool cabin that far work with location & views?

If it has a Dandridge, Kodak, or Seymour address I’d stay away unless it’s bought below residential appraisal and even then it’s a gamble.

1 Vote

Quote from @Kevin Luttrell:

Our cabin in Sevierville is quite slow right now. 61% occupancy for Jan. Lead time is also very short - maybe around 7-10 days on average currently. Most of our calendar is wide open.

What size is your cabin? I think normal now is 50 percent for Jan and feb so you are above expectations at 61 percent. This will be the new normal in Jan/feb

0 Votes

Quote from @Conner Olsen:

Quote from @Bruce Woodruff:

Thought I would check in again, it's been a few months since someone asked this question. Of my 2, one is pretty full, but it has a nearby attraction that supports it. The other is just dead. One booking next week, but nothing after that, Nothing.

It's not an urgent situation, my cost to hold this property is low, but I am thinking of looking a MTRs, and LTRs. The income would be about the same regardless.

How's everyone else doing....?

Cabin in Sevierville is pretty dead. Planning on making more upgrades in the slow season. All the competition is stepping up our game. @John Underwood Glad to know it's just me and it's not the market lol

I think mr underwood has one of those 2 mil dollar cabins that’s ultra luxury, so not sure on the comparison to overall.

Most people I think are down about 20 percent in the smokies. March April and summer though seem to be booking at higher rates than last year for the larger cabins.

1 Vote

Quote from @Carlos Ptriawan:

Quote from @John Clarken:

Quote from @Carlos Ptriawan:

Quote from @John Clarken:

Wow, this is insane! My wife and I are starting the process of designing an ADU as we figured it was a no brainer for added rent and the potential property increase. It is absurd to think this would be appraised at a lessor value at being an addition over a detached ADU.

We are still planning to move forward as in the next year or two it will be for housing our extended family. I imagine after we will still be able to rent out the properties with a split fence line bringing in more cash. I also predict the right family will see the value as there is a need for multigeneration living which looks to be only increasing. This would require they cover the cost of the appraisal difference.

To address this, this is what you should do :
1. Add addition to the ADU so make it attached ADU, make sure it has the same specs with main roof,etc.
2. make sure there's good heating, insulation to the attached building and attached ADU
3. make sure you get permit and everything so it's legal when you sell it as one whole living space.

Thanks for the reply. I'm going to work with the city and see if there is an option for a covered walk way to count at connected. I'll update once further in the process.

the city would not care, it's the appraisar that you should talk to.

by building detached ADU actually we solve city's problem but create problem for us lol

I got an insane deal on a property with a 1000 square foot unfinished detached ADU. There was almost no value given to this structure other than a few thousand for an unfinished garage despite being fully permitted as a dwelling unit. I'm putting 30-40k to finish it out and I won't care what an appraisal values it at.

1 Vote

Quote from @John Underwood:

Quote from @John Carbone:

Quote from @John Underwood:

All of the switch guards that I could find were open on one side. My son found someone online to 3D print a fully enclosed switch cover for a few bucks each.

These makes it much harder for someone to turn off you ring floodlight camera.

My son got a 3D printer for Christmas so maybe he can make stuff like this for me in the future!

I’m having this issue, send one my way!

I had a couple spares but they are in the owners closet and it may be 2 or 3 weeks before I go back up.

My son is checking to see if he can get the CAD file to print some of these.

You welcome to one of my spares if you can wait a few weeks.

Sure I could have wait a few weeks.

0 Votes

Quote from @John Underwood:

All of the switch guards that I could find were open on one side. My son found someone online to 3D print a fully enclosed switch cover for a few bucks each.

These makes it much harder for someone to turn off you ring floodlight camera.

My son got a 3D printer for Christmas so maybe he can make stuff like this for me in the future!

I’m having this issue, send one my way!

0 Votes

Quote from @Corby Goade:

The biggest unknown here- are they on two parcels or one? We could all make guesses here, but your accountant will be the only one with the right answers.

Same parcel, but I renovated the ADU which cost significantly less than the purchase of the property and is where I live, so 90 percent of the "value" at the time is in the rental portion.

0 Votes

Quote from @J Scott:

Originally posted by @Natalie Kolodij:

Originally posted by @Nate Lindquist:

This may throw a wrinkle in the conversation, but what if you own an investment property that's been rented for years, say a run down duplex. Tear it down, build 2 new townhouses and sell them individually. Capital gains, or ordinary?

Excellent question.

There was a very recent tax case where someone had this exact scenario with a primary residence. They lived in their home for like 15 years. Tore it down and built 2 new properties and sold them. The IRS ruled that they did NOT qualify for the 121 capital gain exclusion because the house the occupied as their primary no longer existed.

Your original intent was to keep it as a rental. But if you then decide to tear it down and immediately sell...that sounds like the motive changed. I think the IRS would rule it was ordinary income but I'd have to do further research to give a definite.

And this is why I said to ignore any advice I give on tax stuff! :-)

Thanks Natalie!

How is it classified if you build a house new construction, live in it for 2 years then sell it? Does this qualify for 250k/500k exclusion? What if you live in temporary housing on the property while the house is being built, does the clock start when you occupy the property in the temporary housing or when the main structure is ready?

also, what if 1 year into living in the new property you decide to build another new construction and when it completes 1 year later you decide to sell the prior one for a profit and occupy the new one. Does this qualify every 2 years for the exclusion?

0 Votes

Does anyone know how a situation is handled where you have two structures on a property. Live in one structure for 2 years and always rent out the second structure. Then after two years rent out the structure being owner occupied for a year.

If the property then gets sold do you get to pay no taxes on the sale of a primary residence since it was occupied 2 of the last 5 years?

I’m wondering what the most optimal way to do this if there is a huge gain on the sale of the property of up to 500k (filing married)

I’m not asking for official tax advice, I do have an accountant I will finalize this with but I do like hearing other peoples opinions who have done similar.

1 Vote

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All Forum Posts by: John Carbone

John Carbone has started 38 posts and replied 1080 times.

Post: 3/2 Pool Cabin in Sevierville

Post: 3/2 Pool Cabin in Sevierville

Post: How are everyone's STRs doing right now?

Post: How are everyone's STRs doing right now?

Post: ADU & Property Value

Post: How to keep guest from turning off power to ring camera

Post: How to keep guest from turning off power to ring camera

Post: Selling a house hack and tax exemption

Post: Tax Question - Building and Selling New Construction

Post: Selling a house hack and tax exemption