All Forum Posts by: Joseph Pond

Hey @Trent Kruessel,  I think that link will take you to the membership tiers.  Your pro bonuses will be found at   https://www.biggerpockets.com/pro/welcome

Just a slip of the finger because Mindy knows a whole lot more than I do.

@Kyle H. awesome little unit there.  Where did you build these 3 rentals do you buy a piece of property specifically for the build or on the same property as an existing rental?

@Varinder Kumar did you check your county to see if you have to have an owner occupant in one of the two properties?  I really like this.

I'm looking forward to someone's response on this because I have been thinking strongly about this strategy and there is very little info that I can find on it. It seems there is little response to the topic because nobody is doing it. I know there are some zoning to contend with but where possible I think this could be a goldmine. I'm actually looking for properties that is on land or a large yard for this very reason. I have had ADU terms as a keyword and this is the first hit I've had for it. I almost bought a house on 6 acres with a shop that was finished out as a second home but didn't know at the time if I could have two separate tenants living on one property. Have you done the numbers on the cost to build the unit?

Good response @Jame V. and great info in the links provided.  I'm looking in to this strategy as well.

Definitely check out the calculators as Steve said above if you haven't already.  You can plug all your numbers in on a rental property, print the results, then switch the data over to a flip analysis and compare the two. 

Seeing the numbers laid out should tell the tale, and sounds like you have good cash for flips on both if the rental numbers don't make the grade, congrats.

@Account Closed I wonder if you could approach it like "I would like to build a house on your lot and once I complete the project I would pay you for the land and give you 5-10% or whatever of a profit" maybe you could get a better price on the land and make the owner feel more involved and like they are making an investment as well?

Just a thought..

@Beverly Buella will this be your primary residence or a future investment property?

@Roi C. I have been interested in this approach as well.  In my area, moving outside the city and or living on land (1ac +) seems to be more and more sought after.  It seems like the majority of investors think that the trade offs of losing cash flow during the construction phase, and the cost to build vs rent doesn't make up for the benefit of having a brand new house unless you are a really big builder knocking out neighborhoods, but I think there is definitely a market for it and could be a great strategy even for the small guys.  You would need to work hard on finding a way to build at the lowest possible cost.  I am thinking for me- buy rural land 1-6 acres and subbing out each phase of the build and get a good rental income as quick as possible.

Any reason you will hold the land for a few years before building instead of buy and build and rent asap?     

Welcome, I'm also new to RE investing and am focusing in Desoto County, MS right next door to you. 

Check out MIG (Memphis Investors Group) if you haven't already, I'm about to start attending their meetings.

Good luck!