Trying to replace my mom's income with short term rental income.

[Aaron Dubois]

My mom had a stroke in April which has eliminated any possibility of her ever returning to her extremely stressful 7 job. She is still technically employed and earning an income while she still has sick hours, and she may get Worker's Compensation, but she may not.

Before her stroke I was actively investing on her behalf in an attempt to allow her to retire. She has been sick for the past 4 years and we all knew that she needed to be able to retire quickly, or something like this could happen. Unfortunately I was not able to build up quite as much capital as we would have liked before her stroke forced her into an early retirement.

So now we're rushing into an idea that we've had for a while: Short-term rentals.

We do not have the capital to go at this alone, so we're trying to come up with creative financing solutions while also figuring out "Can we even make this work to begin with?".

Her pre-tax income just hit $105,000. She lives in Oregon, and after taxes and other things taken out of her check she brings in $4,800 a month. So that's the number that I'm aiming to replace. There are of course ways to reduce her expenses. Within the next month she should have about $200,000 in investments that she can pull out.

The basic idea for the short term rentals is a mix of Geodomes and other structures all placed somewhat close together on a single property with a view in the Sedona, Arizona area. A very rough estimate puts the cost at around $800,000, not including the land.

For the land, which we figure will be in the $300,000 - $400,000 area, we're floating the idea of having a friend finance the land and lease it to us, with the right to purchase the land within a certain amount of time.

I'm not an expert in any of this. This is all very new to me - I'm trying to work out a lot of estimates and figures for things that I don't know how to estimate.

I really need help refining these ideas into something that is workable, and of course none of this is workable if we can't get a DSCR loan, which she's worried about.

Between dealing with the symptoms of the stroke, trying to apply for workers comp and medical retirement, worrying about her sick time running out, and worrying about how she's going to replace her income she really can't deal with this, and I'm pretty stressed too. We thought she would be able to retire when she was ready, maybe in the next two years or so, but not like this.