All Forum Posts by: Richard Lawson
Richard Lawson has started 1 posts and replied 1 times.
Currently we have a long term renter which pulls about $500 per month after expenses. It has an open HELOC on it with $132,000 owed. Market value is approximately $315,000 to $330,000.
Our thoughts are to sell the rental which will give approximately $150,000 after closing. We are thinking of purchasing some land near Breckinridge, Colorado for $115,000. I am a contractor and I believe that I can build a 500/ 600 sq ft home for approximately $125,000. This will include all the necessary septic, well, and electrical, etc. Total costs would be around $240,000.
The property would be used as an Airbnb. According to the Bigger Pockets calculator information this area has an estimated occupancy rate of 74%. We have a friend in the same area that has a small apartment which he uses for the same purpose. He nets approximately $20,000 per year. We believe that out property could potentially net above $20,000 per year after expenses.
We are trying to determine if this is a good move for us. We are having a difficult time finding properties that can get us cash flow using the BP calculators. We are definitely looking, and are open, for great deals right now. What are your thoughts?