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Updated over 3 years ago,

User Stats

291
Posts
88
Votes
Tristan S.
  • Rental Property Investor
  • Boone, NC
88
Votes |
291
Posts

Build smaller to get past 12 months no rent rule?

Tristan S.
  • Rental Property Investor
  • Boone, NC
Posted

Hi,

I am about to start building a small cabin next to my house. I already have done all my homework (unrestricted zoning, no hoa/poa, no deed restrictions..Etc). I have gotten my septic permit, the septic system is installed and has passed inspection.

I am about to start my building permit application. Here is my question, I plan on building the whole cabin myself and then renting it out as a short term rental (because I want to and truly enjoy doing things like that). Since I own the land, I can get an homeowner exemption meaning that I do not have to be a licensed GC and I can do everything myself as long as I will be present for all the counties inspections. The limitation is that if I want the exemption, I have to agree not to rent out the place for 12 months after the date of completion.

The only loophole is that if the construction cost is going to be less than 30k, no licensed is needed so no need to apply for the exemption hence no 12 months limitations. The cost is going to be less than 30k because I will build it myself but obviously the county won't just accept my "random" estimate, they will allow to estimate $123/SF of conditioned space and $22/SF of deck.

The floor plan I was planning on building is coming at $37,404 (288 SF floor plan, 90 SF front deck), so my question is : shall I make it smaller to get below that 30k limit ? Meaning that I would probably have to reduce the square footage to 234SF which seem to become rather small at that point!

What do you think? Anyone having some small cabin, tiny house, cottage that are in that size realm as I would love to get feedbacks on what would be too small ?

Thanks a lot!

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