All Forum Posts by: Ross Spindler

Quote from @Michael Baum:

Ok, so that will tell you something. A 3 bedroom septic will support 1-2 small cabins. It won't support RV spaces as well.

What does the county say about multiple septics? How many per acre?

There don't appear to be any specifics about amount per acreage. It's based off of soil tests and which areas can support a drain field. The installer says they don't see a problem with the land supporting multiple septics, but I'd have to verify that through additional permitting after the land purchase

Quote from @Michael Baum:

Hey @Ross Spindler, have you looking into how long it would take to build those cabins? Did you call the county and find out about zoning for multiple buildings renting on a single property? Is there electricity, sewer/septic and water available?

Yes too most of that. County zoning would allow for multiple rentals in the property. Electric and water is available at the street but costs $8k-20k dependant in having someone come out to review. Septic permit already in place for 3 bedroom 

Hey everyone,  

I'm looking for advice on buying land and building for short term rentals in ducktown TN. 

About me: I bought my first duplex 3 years ago and lived in on side and rented the other with VRBO. I bought my second duplex last year and went with anual rentals. I just sold the first duplex for $270k profit and the second one is cash flowing $1600 per month.

I'm moving to the Ducktown/Copperhill area in southeast TN. Land in the area is available at about $10k per acre and zoning is unrestricted.  I'd like to use that $270k to finance and buy about 10 acres and build a few log cabins to rent as short term rentals. Maybe RV hookups too. I see new construction 400sqft cabins advertised around $90k. The area gets lots of tourism due to rafting on the occoe River and mtn hiking trails. 

I've never done anything like this and would love some advice on where to start. Very open to working with any lenders or builders in the area. Happy to also pay for your time if your very experienced in the area and zoning. 

thanks!

Ross

Quote from @Joe Villeneuve:

1 - No.  The other investment must make you $18k a year just to break even.  Why would you do this just to break even?

2 - I would never commit myself to a situation where my return (of which I don't see one here anyway) is based on "give away".

3 - You're committing yourself to 10 years of rent free, to someone that (by your own mention) is 60 years old.  What if at any time during that 10 year period something happens that forces her out of your rental (I can think of at least 5 things off the top of my head)?

4 - If she wants to invest, let her invest.  Make her your cash partner on the next deal.  

 Thank-you for all the good points! 

I really like the idea of being able to add to my portfolio now, vs saving 5 more years first. Would this type of deal sound much better with gaurenteeing rent for more like 7 years instead of 10?

Hey everyone,  

I have a unique situation that I'd like your input on. 

I have a tenant who got a few $100k as inheritance. She doesn't want to spend it all on a house and would prefer to keep renting from me for $1500 per month. Her biggest stresses are not knowing how to invest and not having a place to rent because it's very competitive in Florida.  

I have a couple duplexes, good income, and great credit... but not enough cash for my next multifamily down-payment.  

Would you take $100k from your tenant in exchange for 10 years of future rent? At $1500 a month... she'd basically be paying 5.5 years worth of rent but getting 10 years worth. (Almost doubling her money)

I'd lose out on the $1500 rent for 10 years, but likely make it up by putting that cash into another property that can flow close to $1500 monthly. 

also, I think our ages matter to better explain motivation in this situation.  I'm 33 and she's 60. 

Would you take this deal? What parts aren't I considering?

Hey everyone, 

I'm pretty new to investment properties and am looking for some tax advice.... I bought a duplex about 2 years ago for $200k where I live on one side and rent the other side for $1500 per month. I also had a new duplex built in May of this year for $275k where each side is rented for $1500 per month. The land value for each duplex is about $20k. Values in my area have gone up significantly and I'm curious if getting them re-appraised would allow me to depreciate more money over the next 27 years.

The duplex I live in is worth atleast $300k now ($100k increase) and identical duplexes as my new one are being sold by my builder right now for $360k ($85k increase). Will getting new appraisals allow me to depreciate that additional $185k in appreciation?

Thanks for any and all advice! I'll also need to get myself a CPA or tax person or something similar?