All Forum Posts by: Joshua VanName

I am in upstate NY.  This is a rural area and one can build their own home.  I can legally build just about anything that I want up here.  You still need to follow local codes of course.  I am on a first name basis with just about all the local inspectors/code enforcement and they are an easy bunch to work with.  

It does not make sense for me to do all the work myself just for the savings in labor costs.  I would be better off going to my job and working overtime and paying someone else to build it. I would then keep the extra hours going towards increasing my pension, extra overtime hours that would have been spent on my rental, my year-end bonus would be bigger, and I can come it with a significantly higher cost basis lowering my tax liability. The opportunity cost is too high if I am unable to somehow write down my personal labor. 

An outside contractor would probably finish it in 2 months and allow me to rent it several months sooner than if I built it in my free time.  Over 11 rentals that would be $50k.  

 This is absolutely the way to go.  Simple fix.  If it were me I would still tear into that wall and have a look.  

Hello everyone.  This is my first post here but have really enjoyed reading up these past few weeks.  Glad I found this site.  It's addictive.

I am getting ready to break ground on my first 2 rentals.  I am approved for 11 small dwellings on my 11 acres. I am a union carpenter and have small construction side business.  I will be doing the majority of the work myself.  I can build the A-frame for $53k in materials and the shed roof cabin for $41k.    

My concern is how this will affect my cost basis for depreciation or capital gains purposes.  My cost basis would be 40 or 50% lower due to the fact I am performing most of the labor "free of charge".  Over 11 rentals this would be in the neighborhood of $250k.     

I imagine if I cut back a few hours at work I could easily qualify for real estate professional status.  Just not entirely clear how this would benefit me? I only need 1000 hours to keep my union benefits and the hopes in building these is that I can step back from working as many w2 hours in the future.

Can I hire myself to build it?  Is that legal?  I could easily find the expenses to bring my tax liability for the income from building it down close to zero.  I would love another company truck and could use a new excavator. This seems the easiest route if possible.

Do I just go to work and use that money to pay someone else to come build it so I can have a better cost basis? Could anyone offer some insight?  Am I missing something obvious here?  Should I just be grateful I can build something for what I consider a great price?  Any help would be greatly appreciated. 

These are the 2 cabins.  The shed roof cabin will be longer than the photo depicts.