All Forum Posts by: Lisa Kinman

55+ sounds like it could be difficult to rent out. I'd have to look into the HOA restrictions... but something like that, yes!

@Jaycee Greene, we actually have a ton of equity in our STR! There's no mortgage on it at all. It would be really fun to find a fixer in the same area and work my magic again. Just have to make sure that nothing is slipping through the cracks.

@Caleb Brown Thank you for the perspective. You’ve helped motivate me to sit down and do the math! There could be hope yet!

 Yes! I don’t have much to invest yet, but I’m starting to do my research. Since I already have a team of vendors in Carlsbad, I’m hoping to find something in that vicinity…

Hello. I bought a jackrabbit cabin during the pandemic. It's a cinderblock shell on 5 acres of sand. It had no utilities or septic, so I proceeded to follow all the steps - I've since paid for and completed all the County required tests and have approved building plans. My little pink gem is about 380 square feet. The plans include installing a septic system, water and power, and creating a living space inside with a kitchen, bathroom and living room (studio apartment). 

The water meter alone will cost about $17k. I don't know the charge for an electric meter, prices for actually bringing water and power from the meters to the house, or any of the building costs. I overpaid for the property ($90k) and have spent more than I care to mention on the architect, permitting, PERC test, and miscellaneous fees... My mind tells me to just walk away, sell it for whatever I can get, and take the write off over the next several years. But part of me says to hang onto it, finish the job, and offer it as a long-term rental. 

It's a lot to figure out money-wise and I'm not sure I'm qualified to do the math... what would you do? 

Thanks, Jaycee! It's in Carlsbad, CA. :)

Oh - lessons learned - don't drain your husband's retirement account without first talking to your accountant. Apparently it counts as income AND bumps you into a higher tax bracket, and the giant expense won't always balance out your new tax bill. Who knew?

Investment Info:

Single-family residence other investment.

Cash invested: $350,000

Husband's childhood home was long term rental and trashed. Renters moved out and I completely renovated it. Now it's a vacation rental and doing very well!

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

Creating something beautiful from something disgusting; maximizing profit with asset.

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

N/A

How did you finance this deal?

Took out a HELOC on my residence, then drained my husband's retirement account. :\

How did you add value to the deal?

I updated the bathrooms, added a game room, an indoor griddle/breakfast station, decorated with beach theme (it's by the ocean), replaced the roof, added an HVAC, added all new flooring, resurfaced the pool, poured new concrete in the backyard, created an area for a fire table, bought furniture for outdoor dining, and much more.

What was the outcome?

It's only been on the market for about 3 months, but we're nearly booked solid! Finally making money on that house!

Lessons learned? Challenges?

Don't waste time and money with "handy" or unlicensed people. Get bids for big jobs and pay for the one that feels right. Get signed contracts and receipts - you'll need them for your taxes. Also, "repairs" will be deducted on current taxes, while "renovations" will be taken over multiple years.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I didn't have to, I'm a realtor :)

 BUMMER!  :( 

Well that market has cooled off a bit. Prices continue to be "up there," but the feeding frenzy is over. I would love to help any of you who are still looking in the area. I partner with an agent in Landers who is extremely knowledgeable about the high desert - all the way from Morongo to Landers to JT to 29 Palms... we know all the back roads, the secret areas, the high end homes to the jackrabbit homesteads! Summer is a good time to buy, too - it's low season.