All Forum Posts by: Gregory Mizzi

@Ed Emmons Yeah, I have been thinking about just about all of this. I understand that timber, unless dried in a kiln, can take anywhere from 6 months to 2 years to dry. That being said, this is going to be a long term project. I figured a small temporary cabin to live in/use during the year or so drying period would be okay as I work on other ventures. I am debating adding power, whether it is solar or connecting (there is power at the road I can access). I thinking about starting small. I've seen tents yurts get booked for months at a time as well as completely disconnected cabins (just looked up 3 and they were booked until March). These are all great things to think about. Thanks!

@Jen Whitehead I was thinking about the hunting/fishing guide idea once I become accustomed to it myself. I also have some business ideas as well. Not sure how they would work out in the area I am looking at, but it is something to think about. Cell service is fine. Did a video chat with the agent for the initial look at the land. Did not have any connection issues. There is also power at the road which I can access if I need/want power. Overall, its a pretty nice spot. Close enough to lakes for fishing/boating, not so close to worry about flooding.

@Alecia Loveless Thanks for the input. There is a small town about 20mins away which has some things like stores, a diner, movies, etc. So there is the option to reenter society if a vacationer really cannot stay away. Good things to consider that I will look more into. There is also a large public lake with boating and other activities near where I am looking, maybe 30mins away, on top of all the other lakes and streams. I am also going to want something to do when I stay there too after all.

@Jen Whitehead That area looks amazing. The plot I am looking at is about an hour from Bangor. Thanks for the tip about permits. Where I am currently looking, it has a stream on the property and is not far from the Chain Lakes. Its just over 80 acres, so plenty of space to work with. I definitely do not want to return to NYC. I am looking to get out of the city by any means. One thing I was thinking about, other than working remotely, is what I would do to make a living if I decided to quit my job and move permanently rather than use it as a vacation spot.

That would be ideal if the trees in the area allow for it. Skinny little birch trees won't cut it. I have built some things, nothing as big as a house, but I have. So has my wife. We've both done some woodworking. My job is also hands on so I am also building things and equipment. It's a huge undertaking to build from raw materials, but its a project I would like to tackle.

Yeah, 5 & 6 were always something I thought about. How do remote landlords and vacation owners deal with this? I was thinking a property manager/concierge would coordinate a cleaning service and keep track of these things. Certainly something to negotiate and talk about.

I am new to all of this and I am not familiar with regulations in Maine, but I do not think I will need to pull permits. Ideally, building would be done with the trees in the area if they are big enough. This would start out as a personal project for my wife and I, which we can turn into something cash flowing later. The idea of chopping down my own trees to build my own cabin is appealing. Push come to shove, we have priced out some cabin kits as well as some other options

Debating on septic vs. composting. I do not mind composting for us. Once we get into the vacation rental side of things, we would put in the septic system. That part of the cost is not a problem for me personally. Solar is also a maybe. Really going for the off-grid idea so I (and others) can unplug.

Based on what I have looked into, similar lots that sell with some sort of livable structure sell for nearly 6-8x the raw land value. Been looking for months (almost a year) and within a day or two of listing these kind of listings go under contract. Too many times I saw something I wanted to buy that was listed as "new" that was already sold. So I am not too worried about reselling it if I need to for any major reason (though I certainly plan on holding).

Thanks for the input.

Hello everyone,

I am currently looking at buying land in Maine (near Bangor) to use not only as a personal vacation spot (to get out of NYC for once), but also as a vacation rental for when I build on the land. I was wondering if anyone has any experience with buying land, building an off-grid (or even on-grid) cabin and renting it out as a vacation spot on AirBnB and/or Vrbo, using a property manager to manage the space, etc. My wife and I have been wanting to rent a cabin for a while now and they always seem booked, even listings that are only a safari tent and a hammock are booked months in advanced, so it seems like a good idea. However, I naturally want as much information as possible when it comes to these things.

What are some things I need to consider? Ideally, this would be a place to disconnect from the world. A digital or tech detox spot if you will. Enjoy the outdoors, live rustically for a while, hunt/fish/hike/bike, etc. What do I need to know to give this a good chance of succeeding? What would be some things to include as a vacation rental? A couple of canoe's for the lake? Some mountain/dirt bicycles? Transportation from the airport? Or am I overthinking? At the very least, this would be for our personal use, but we would like to turn it into a cash flowing property when we are not using it (which would be most of the time I would imagine).

Thanks

@Paul Welden I just looked up the difference between the 203b and 203k. Good thing you mentioned it because I only ever heard of the 203b, which I now know is a bit different. So yes, 203k is what I would look into using. And good to know that there are contractors and other professionals who know their way around the loan. I have read posts on here about how difficult it can be. I just need the right professional

@Brandon Rush I see what you are saying. Thanks for the detailed response. I should clarify, what I mean by appreciation is forced appreciation. I aim to take an undervalued property and raise to market value (maybe even just over it) similar to the BRRRR strategy, only I would sell it rather than refinance to extract my money. I am certainly not counting on appreciation over time.

I am open to a multifamily if it is within my budget, especially if it in need of some work and is under market value. The rental income would certainly help to build a downpayment over time. My only concern is that it would be too slow for certain markets, depending on where I move to. Currently, I am looking at Denver, CO as my current job is opening a new office there. With that said, I think the single family home route might be the most readily available option at a more favorable price since this would be my first property. But I will cross that bridge when I get there.

@Paul Welden The tax benefits of waiting an additional year sound great considering I cannot use the 1031 Exchange for a primary residence under normal conditions. If I combine that with a multifamily with rental income + forced appreciation that could work. Something to think about. I also do not plan on buying anything soon, so the VA rehab loans may be reinstated by the time I would be looking to buy, however I am not counting on it.

Also, I am under the impression that the 203b are a nightmare to work with and that contractors, by and large, do not like working with buyers who use them since it takes (in my understanding) forever for them to get paid. Would taking out a hard money loan to cover the rehab costs be okay, whereby I would use the 203b money to pay the hard money lender (and paying the interest difference if necessary)? I presume that the 203b money goes to me then I pay the contractor. However, if it goes to the contractor directly that could pose some logistical issues. Though, I work with contractors at my job so it would be something to discuss.

TL;DR: I want to buy a fixer-upper with an FHA/VA loan for 0%-3.5% down, force appreciation through renovations, then sell after a year and use the profit as the 20% downpayment on a conventional loan then BRRRR. Is this a good idea?

Hello everyone,

I recently introduced myself the intro group and mentioned a strategy I was considering. Long story short, I live in NYC but plan to move. I want to BRRRR but I do not have 20% saved (not including my investment portfolio, which I do not want to blow on one investment). I did some practice analyses and determined that an FHA or VA loan would not work for a BRRRR. There is not enough money left to cash out. I was thinking of doing a "long-term" flip, whereby my first home would be a fixer-upper purchased with an FHA or VA loan (my wife is a veteran), live there for a year or so as I look for other properties. And instead of a refi, I would sell, hopefully realizing all the profits of the appreciation (minus closing and agents fees, etc.) instead of the refi's 70-80% LTV. The thought being that I can use the profit as the 20% down on another fixer-upper and BRRRR from there. I consider this over a typical flip since I have no experience and hard money loans are more risky. So far, I have not been able to think of any downsides that are within my control. I do not think I would be violating any loan terms, and provided there is not a significant decrease in home values, I think this could work. The only downside would be the mortgage payment vs. an interest-only loan, but I would be living there for at least a year so it makes little difference to me.

Does anyone see any potential issues with the initial strategy?

Thanks!

@Jim Cummings Thanks, I will check it out. Certainly sounds like it fits what I want to do.

@Alexander Szikla I see what you are saying about NYC, however I am fairly bearish on it. I hear from people all the time that they pay too much rent for a place they can do nothing in. That, even pre-pandamic, they never had the money to really enjoy living here. Between the ludicrous rents, insane home prices, businesses being destroyed by the lockdown and unyielding commercial rents, I do not think NYC will be a place worth living for a long time. The small businesses that make it worth it are being replaced by Citi banks and Starbucks. I hear it from recruiters at my tech job, why should people who can work from home move, live or stay here? The numbers are certainly attractive but from my perspective and my own opinion about the city between high rents, everything being overpriced, taxes being very high, homeless issues, drug issues, the rise in violent crimes and the overall filth of the city, it is not worth the bet. At least not for me. I feel like I pay a premium to live in a pigsty. Even if I did consider house hacking here, the price of multifamilies are way outside my budget. Even if I could swing the downpayment I could not afford the mortgages, and I would want to be able to afford the mortgage when there is no tenant picking up the slack. I also really want to move.