All Forum Posts by: Chad Tessmann

I am going to have 2 properties that I am projecting losses on. One is going to be a short term rental and the other is a house-hack. The STR I am going to be building from scratch (in Alaska btw). Are there any tax deductions credits I can look for?

So I bought a house this year and I am currently house-hacking (yes, house hacking a SFR). But I am also buying some raw land to build a vacation home on. My vacation home is going to be built, then used as a vacation rental during the times I am not there. Currently, I am projecting a loss on the property, but the end goal of this was just to offset a little bit of the cost (even if it only offsets the mortgage interest, I consider the deal a win). I am doing this for my grandfather who always wanted a cabin for the family, but never got the chance himself. But I want to make sure I don't miss out on a possible tax credit/deduction opportunity here if there is.

@Laura Guy ...but also, give them an inch and they'll take a mile. Changing the meanings of words to agree with people's feelings is the name of game today it seems. But here, the issue is not the term, but a lack of clarity on the issue. If people simply don't like the term... then f*** 'em. But if there is an actual need for a new term to differentiate two new products (and there is not), then go for it.

Short and sweet question today. What are the top 3 things NOT to do when advertising a commercial office space?

If you must know: a buyer is considering a deal in his local downtown. The building has stable tenants although severely sub-par rents and about 40% vacancy. However, given the purchase price, the property nearly cash flows as is. What should this potential buyer avoid when advertising to potential tenants to fill his/her vacancies? Also, any other advice about this type of deal would be appreciated.

Thanks in advance!!

I think I actually analyzed that property a while ago... when I analyzed that property, I had thought it would need much more cash invested to BRRRR it or Flip it; although not a crazy amount. How did you manage the sale for $55k with less than $2k invested?

Well that certainly is an interesting side hustle!  I have been tracking the market for select planes and have pictures of them posted all over my office at my day job.  My office is one of the coolest ones in the building.  I just want to know whether my plan is merited... and from your response, it probably isn't too far off.

Good morning! With my love for aviation came a general search and deal analysis over time. I created spreadsheets to analyze all types of costs and methods of ownership and comparison tables... and I actually joined this community to learn how to use REI to help fund my aviation dreams.

But having searched real estate, I found myself struggling to find deals or when I did find them, I struggled to find financing.  While at the same time, a lightbulb turned on and I though, "why invest in real estate, when aviation is what I really want to do?"  But I feel like having RE in my portfolio would be better as to diversify a little bit.

All that to ask: has anyone used alternate investments or flips to jumpstart their REI portfolio? I know people have flipped cars, trucks, boats... then to use the profit to invest in real estate? If people can flip cars, why can't I flip a plane if I already know the market?

What are your thoughts BP?

@Marcus Auerbach  I always thought this was more subjective?  You have assigned neighborhoods through price range with the exception of D- class... can you elaborate more on this please?  I thought there were more factors that went into this determination such as crime, location to schools and their quality, condition of roads, noise level, and then median price/value.  

While all these factors do play their own roles and are somewhat connected to price/value, can you elaborate more on how to figure out the splits if you are using a price point as the determining factor?

@Joseph Hummel  I agree.  Shipping container homes actually take a lot more work to construct meaning @Krystin Krebs would have a longer build time; tying up capital for too long.  My background is in mechanical engineering.  The problem with shipping containers is that they actually are not that strong.  Fully constructed they are fine, but once holes are cut into them for doors, windows, etc... they loose most of the structural integrity.  This means you have to frame out the inside... which if you have to do that, why not just build a regular home custom designed to your niche? 

However, house designs are a black hole.  It's easy to spend too much time on that topic.  My advice would be to talk to the zoning department first.  Just keep taking action!

Also, watch out for deer (a mid-western goodbye).

@Bill Ward  No.  No boat that I am trying to get rid of anyway.  I like your analogy of boats being like motorcycles; however, that more applies to boats over 12ft length.  Smaller boats are more like kid's bicycles, there's many variations, but they all pretty much do the same thing and they're there just to prep someone for a bigger boat.  While, a large boat probably isn't the way to go, I was wondering if a small boat (think pedal boat small) would at the least, give me a unique marketing tool to generate traffic and minimize vacancy rates.

So I've come across a potential deal that sits on a river. Assuming I can get the deal at a good price where cash flow makes sense... how would throwing a small boat in to the deal improve or reduce my marketing?

The idea is to BRRRR the property and then to offer seller financing on the boat (to the tenant) while they rent. So the boat is really being sold and I would have to bother with its maintenance. But I would be able to charge a higher rental price because they're getting a boat and thier own dock.

Thoughts?