All Forum Posts by: John Turner

@Vaughn K. I like the thoughts you’ve touched on here. Thanks for taking the time!

@David Clinton III Thanks for the input here David. That could definitely be an option and something I can add to our possibility list! 

@Danielle Jackson Thanks for the input here. Not sure about the splitting option, but I'm guessing it's not due to my family member who checked into it about 10 years back. I believe the previous splitting was done prior to that rule being put into place. 

HI BiggerPockets,

I'd like to ask for some general wisdom from the group. My wife and I are looking to identify a wise use of about 3.5 acres of land. We are early 30's, no kids, living in WA State (Spokane area). 

Here's our situation:

· My wife and I are living essentially rent-free in a family-owned residence (1937 build, 2 bd 1 ba). In return, we are renovating the place.

· The property is free and clear

· We can likely be here for another 1.5 years in our current situation

· We are clearing $750 a month on our rental 10 minutes up the road. We have awesome tenants who will be in the home until at least July '23

· There is about 3.5 acres of vacant land on the property we're at now.

· My aunt/uncle live next door to us, and my mom lives next to them.

· Lastly, my family would actually like for us to buy the house and land from them. I believe it would be a reasonable deal (and my wife and I enjoy living there already).

Goals:

· Financial independence (of course)

· We would like to do something productive with the land rather than just have it sit vacant

   · Could we farm something on it?

     ·  Lease to someone?

   · Build a small apartment? Like an AirBnB?

         o There is something called a Detached Accessory Dwelling Unit where we may be able to build a small apartment. Can't be more than 2 bedrooms, must be 800 sq. feet or less, and must be 150 feet of the existing residence.

· A close family member had (years ago) inquired of the County of the possibility of building a traditional home in the vacant area, but was told "no" due to only being able to have 1 residence per 5 acres (county rule, I believe)

Question:

· What productive activity or step would BP recommend we look into with this vacant land?

Thanks a ton!

John

@Doran Summers

Thanks for the reply!

Not sure about the prepay penalty. I’d have to look that up. 
It’s only been about 2 months since our refi. We know we can wait for 10 more months and be free and clear, but we would like to find an option earlier than that due to my wife’s school.

Would it be wise to talk to different lenders and see what their investment property refi options are? Talk with a broker?

Thanks,

John

Jody, Thanks for the thoughts here!

Thankfully, the new place we’d be moving into would be essentially free-of-charge, so obtaining another primary loan would not be necessary for a couple years. 

Would we theoretically be able to refi a second time, this time as an investment property, and eat any out of pocket cost?

Hi BP,

My wife and I recently finished up a refi on our primary home that we’ve lived in for a few years. An opportunity presented itself to move out of our home into my late grandmothers home and convert our house into an investment property. All’s going well until..

I realized that the owner-occupied clause within the covenant terms would apply, and we would be missing an opportunity waiting another 9-10 months. I wrote a letter explaining the situation, which was pretty quickly denied. Pretty boiler-plate letter, but they said they would not make an exception.

Do we have any other options? I’ve looked and can’t seem to find an answer.

Thanks!