All Forum Posts by: Joe Kato

Appreciate the feedback.  I was thinking a 2/1 on concrete pilings, no basement.  I would dig septic, but figure 10k for septic, 5k for well, 10k foundation.  Stick build single pitch 16x32 or similar.  Or get modular 3/2 for $90k..with site costs and completion total 150k invested.  

Any suggested resources or spreadsheet for budgeting for building costs?  $100/S.F should work for simple rental house with good insulation, 2 head minisplits for heat/cool is $6k, $5k kitchen, $3k electrical, $3k plumbing with electric hot water heater.  a 700 foot house is around $70K..  Maybe my comps are off..

Have 2+ building lots close drive to beach. Question whether we should sell lots or build and rent out/rent to own? Could build smaller homes for empty nesters/millennials or average 3/2 homes for families.

Numbers are:

Sale price 50+k per lot

or build small 2/1 house for $50-100K, rent out for 1000/mo, cap rate 6%

Or build reg 3/2 house for 150k, rent out for 1500, cap rate 8%

considering market is hot, but not forever, what is best play have long term income?  Either sell and put into stock/bond investment. or build and rent and clear 600 to 800 a month.  Building/renting out yields more than 4% average SWR but there are building / ongoing landlord risk too.

thanks

Hi Ed,

I'm subscribed! Thanks for sharing helpful info. I have MFR and SFR in CT. Will add your tip to my leases. Also have some property in Trust.

My  question is about selling land.  Can I sell land, owner financed, but turn the title/deed over to buyer(holding 1st lein on property) so they can start digging/building?  Or should I hold title until the buyer obtains bank loan and pays me off to transfer title.  Thanks! 

 Can you elaborate more? Why wouldn't you finance?  I was suggesting 5% financing..

House might generate up to $1500 a month, but agree, still lots of headache when I could get cash sooner. Did IRR and NPV analysis and looks like a 9-15% return over 10 years if sell the house after.

Land buyer wants me to seller finance, so get ~$400 a month for 10 years anyway or balloon PMT.

Yes I am not trying to build any more of REI empire, just looking for enough cashflow for next 60 years (3 rentals and stock market 4% SWR).

Trying to sell buildable lot.  Offers coming in around $60k.  However, if I build a modular home on lot, could rent for @1200 a month.  cost to build estimate at 120k, not including time and effort..  

Running numbers looks like $13,200 NOI, $4500 in mortgage interest first year, so 8700 takehome, or $700 a month. Is this better than selling now and putting cash in pocket and paying taxes on top of regular income in 25-28% tax bracket?

Its in CT.  I'm stressing about buying this land because its another debt/loan and I don't yet have revenue stream for. But at $1400 per acre, buildable, subdividable, etc., I do believe it will pay off somehow.

Anyone have actual numbers for what selling forest wood has generated in area, or agriculture rents?

Interesting idea for tax write off.. I sold a MFR last year and paid quite a bit in cap gains..

Can sit on it and just pay property tax if I put it in forestry, PA-490  

Any income possibilities from renting farm land?  Clear trees and rent pasture?

Anyone know about solar farm feasability to sell power to grid?  

Under contract for additional property next to primary residence. 3 lots, sub-dividable, 2 miles from Interstate, 20 minutes from ocean, but in the quiet woods. Looking for ideas how to turn positive ROI on this land.

1. subdivide and sell lots? (costly to do survey, septic, wetlands, engr)
2. build cabins in woods for AirBNB weekend getaways?
3. Build 2 small homes on existing lots for long term rentals
4. build affordable housing 8-30 g community
5. build runway and make fly in community
6. Sit on land and enjoy bigger yard/woods.

Other viable ideas?  Best idea?

Fixing up an 1800s colonial house with waterfront in coastal new England. Looking to attract summer vacationers for AIRBNB / VRBO rental. Last year setup our first AirBNB in another property in town and had over 150 nights filled in a small 2 person place. This new house could sleep 6-8 people, but predicament is should I leave it 1 bathroom, or make 2 baths? The home is small 1000 S.F. 2 story house, 15 min walk to town, but on the water with dock, and can attract transient boaters looking for overnight, as well as beach goers and city folk looking for a weekend getaway. House is small and thought may be better to add second bath so 2 couples could rent it and each have a bathroom, or family with kids and have separate baths. Alternatively, it is a 3 bed now that could have 2 queen beds and bunk-beds in the third small bedroom, and even a pull out couch in Living room, but that could cramp a 1 bathroom home. Request your thoughts if you were looking for a vacation rental and what would make/break the decision to stay here or if you have experience with nightly house rentals what is most desirable?  thanks