All Forum Posts by: Cameron Calvert

@Jay Bettencourt What are financing terms for the construction loan? And where are you getting the loan? 

Thanks for the personal perspective. So what are roofers and builders doing in anticipation of a huge slowdown?

Custom home builds have come to a screeching halt. The only new construction going on is in crammed subdivisions by the bigger builders who have more resources, labor, and most importantly, materials. Other new builds are sitting for 6 months waiting for a front door to come in before the house can close. That's how crunched all supply chains are right now. 

My lender tells me that land loans require 30%-35% down on a 10 year, 9% loan. After the land and construction loans are refinanced together, you're looking at 20%-30% down payment all in IF it's you're primary home. Builders are sitting tight and refusing bids. They're quoting projects with materials costs at 300% of current material prices and double the lead times for builds so that way they can cover their costs in case of continued raging inflation. In many cases, new construction homes do not appraise for what it cost to build them. 

Construction loan programs are on hold right now - What is the best way to position oneself before the supply chain breaks free and everyone is rushing to new construction? Do you buy land in hopes of being able to secure a custom build sometime in the near future at a reasonable cost?

Thanks for the feedback . We have had the idea to have her clean the place but don't want it to turn into a "don't **** where you eat" type of situation. The yard work would be a great idea because her yard always seems to be in good condition. 

I will probably put some gravel down on either side to keep the fence from getting beat up by a weedeater. If they don't want to mow the little bit of grass that would be left then I'll gravel to the property line.

Update: 

The fence went up on Saturday, and it went surprisingly well. The neighbor was very nice about it and told us she wasn't upset about the fence. She even seemed grateful that we were setting the fence 10 inches off the property line. We plan on removing the street light that she's asked us to remove in order to build some goodwill with her. 

Luckily, the fence doesn't really inhibit their view of the mountain range but totally blocks their view of our backyard so it ended up being the best case scenario. Thank you for all of the advice and criticism! It has been a learning experience so far.

We still haven't broken the news to her or the other neighbors that this will be a STR, but we will try to find a way to do that gracefully. We were thinking about bringing a bottle of wine to the two houses bordering us and giving them our info so that they can call with any issues. We will go with the kill 'em with kindness route.

Thanks again for the feedback. Feel free to connect with me! I'm sure I'll be seeking more advice very soon. 

@Julius Chinn Chicken interesting thought but that’s cash money that is needed for the business. I want them completely removed from the business

So my girlfriend and I just bought a house with incredible mountain views and are planning on turning the property into a vacation rental.

The problem is, the new neighbors suffer from various mental illnesses and are very low income. They are far too nosy and intrusive to operate a relaxing mountain getaway. They’ve already requested we remove trees obstructing their view and to take down a large light on a power line pole. The previous owner had legal and personal feuds with them too. Just trust me...they’re way too close for comfort.

Ipso facto the decision has been made to build a 6 foot privacy fence in between the properties to separate our business and these neighbors. There are no restrictions on fence height. The big issue is going to be that the fence will mostly block the deranged neighbors’ view of the mountain range.

How do I prevent an atomic meltdown from the neighbors on Saturday when they see us outside building a 6+ foot fence in front of their view?

Second question: How do you break it to the neighbors when you buy a new property that it will strictly be vacation renters living there? Obviously people don’t want a new person staying next door to them every night.

All ideas and advice welcome!

I am under contract on a home in N Asheville that has a large lot, adjacent stream, and across street from country club golf course. I could chip to the green on #6 from the front yard. It also has some downsides. It’s in a flood zone and house is very dated. And there are some repairs that need to be made that I’m requesting the seller pays for. I’ve got them covering $5,000 of my closing costs so that I can save some cash for rehabbing. The good news is that it has an unfinished basement I can turn into additional square footage, it’s got incredible views, and a ton of potential. Thanks to the location, I truly believe and intend to make $200,000+ when I sell this in two years.

I would sell it after two years and avoid any capital gains tax I made on the property. Profit that's tax free. Even if I chose to hold it, I would be able to BRRRR the property and pull cash out of it. It needs a lot of work and I have little rehabbing experience. I plan to do a lot of the work myself. But will need a fair share of professional help. I'm sure stuff will go wrong. I'm sure it'll be a major wake up call at times. Im going to pull most of the money out of my 401k penalty-free for this (look up 401k withdrawal under CARES ACT). I'm tired of sitting on the sidelines paying rent. It's a risk but I'm going for it because I feel this is my first logical step to financial freedom. If you don't believe you're a real estate investor yet, speak it into existence and you'll start to believe it yourself. So will others. Study your market. Look at every transaction. You'll learn what's a good buy and what's not. Think creatively! How can I make this property profitable for myself? Manipulate loans, grants, insurance rates everything and make it work.

All - Thank you for the different perspectives. It really helped me come to a decision on this. If you're interested, I decided to stop negotiations for the following reasons:

- This was a deal that would get me virtually no equity. Only way I could build equity was to put the cash flow back into the principle, which would restrict me from building my portfolio further.

-This was too big of a leap to sign up for managing a property this size not knowing if I even liked managing short term rentals. 

- To the points above, property manager would be 25%, which would not make this deal profitable. And also, the fact that they're selling it at a business price as opposed to the real estate, which does not fly in this market. 

-Lastly, this deal would not work (at least not well enough) with long term renters, leaving me no fall back plan.

Thanks again for all of the input. This has been truly educational for me. 

Also special shoutout to the Asheville people who gave market insight, @Doniel Winter, @Lauren B., @Cindy Coker, @Jon A.