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Updated over 1 year ago,
Want to sell my regular houses and buy more lakefront for ABNB
I recently started renting out the MIL at my lake house. It has been a cash COW!!! I have several other houses throughout the area, but they are not lakefront/waterfront or anything. So I'm not sure if they'll get as many bookings if I try to ABNB them as is in the locations they are. It's doubtful, when I rented via ABNB myself, I booked lake houses...not typical houses with no views, no waterfront, etc.
So I'm tempted to sell and 1031 my other houses into more waterfront property. But the interest rates are not making that a favorable thing logistics wise considering my rates on each property are 3.625%
In theory if I keep the replacement property purchases under 600K, with the equity from each house I could put down enough and replace enough debt for 1031 rules that the mortgage payment would be 2.5K a month. At the least, I'd break even. At best, I'd make 2-3K profit each month.
Thoughts? If I can pull this off, replacing my regular houses with more lake front houses, I could pull in 500K a year profit...Just gotta give up the sweet interest rates for now. I could at least do this with my under performing properties. Leave the ones in high appreciation areas where they are at. There's 3 houses specifically I'd like to sell at the least and do this with. Maybe 7 total to do it with at best.