All Forum Posts by: Kyle Kershner

Investment Info:

Other buy & hold investment.

Purchase price: $40,000
Sale price: $135,000

Originally purchased 27 acres to build a new home, but purchased a spec home instead. Held the land, obtained wastewater permits and subdivided. Sold one lot, retained other; executed a 1031 tax exchange to defer the capital gain. Purchasing a fix and flip ski house as replacement property.

What made you interested in investing in this type of deal?

Knowledge of 1031 tax exchange benefits.

How did you find this deal and how did you negotiate it?

The owner had two lots, but one of them failed tests for septic, so purchased as one large lot instead of two building lots. State wastewater requirements changed in 2008, allowing for a workaround which enable me to revert the land back into two lots.

How did you finance this deal?

Cash

How did you add value to the deal?

Held for many years and created two lots from one.

What was the outcome?

Made a large profit and still have one of the lots to sell or build on later.

Lessons learned? Challenges?

I had septic designs done in 2007, but never filed for the permits and had to pay for all new tests and engineering again in 2022.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am real estate professional.

@ Mike Koprowski - thanks for the recommendation on Avery Carl's book - I just ordered it on Amazon!

Hi Miguel, unfortunately, Dover is way out of my service area and I don't know what types of restrictions they have. 

Woodstock has some of the most restrictive regulations on STRs in VT. The ski towns are far more accommodating, but be aware of restrictions adopted by some home owner's associations - there are many condo complexes that only allow STRs through HOA-approved rental agencies.

Hi Sara, I'd be happy to email you a few of my top local lenders if you'd like. Feel free to message me.

Vermont real estate is super hot right now - an exceptional seller's market. 1st it was driven by AirBnb and STR opportunities, then it was the COVID migration from the cities and now, we are beginning to see climate change driven relocations. I'm currently working with four buyers citing climate change as their reason for moving here - one from OR and one from UT, both citing smoke from forest fires and two from New Orleans, for obvious reasons. Even with the extraordinary appreciation in the past two years, Vermont could still be an outstanding place to consider for real estate investment. In full disclosure, I own a brokerage in Killington - I'm not looking for buyer clients here, just sharing investor insights with fellow BiggerPockets members. I am currently renovating a foreclosure in Rutland and with such low inventory, I am going to begin targeting additional Rutland properties. With Lake Champlain, UVM and the great city of Burlington, Chittenden county has experienced housing shortages for a decade; with their proximity to Killington and Pico ski resorts, Lake George and Lake Bomoseen, and employment centers like General Electric and Rutland Regional Medical Center, Rutland Town and Rutland City could very well be the next high growth markets in VT. My personal investment strategy is to buy and hold, yielding the best of both worlds - earn rental income in the near term and experience asset appreciation in the long term.

Joe, full disclosure, I own a real estate firm in Killington. It might be helpful to get connected with a buyer's agent who can set up an automated search directly from the MLS (multiple listing service), then you will be notified in real time as soon as a new property that matches your search criteria hits the market. I list a lot of properties in Killington and the surrounding towns and my firm and some of the others, generally keep the property on the market for several days and sometimes for as much as a week or more. We ask for all offers to be submitted by a designated date. This approach helps my sellers by giving their property sufficient exposure to the market and generally results in multiple offer situations, but it also gives buyers, who are by and large, from out of state, an opportunity to come and see the property in person or at least have their buyer's agent do virtual FaceTime or Zoom showings for them. I'm not sure listing agents who advise their seller clients to snap up the first offer that comes along are doing what's best for their clients. I'm not looking for new business here - I actually can't take on any new buyers at this time anyway, but I am a fellow real estate investor and just wanted to offer some advice. Good luck with your search for a STR.

Congrats Nathan! Let me know if you'd like us to try to provide a list of past clients, which could be a very good start for you. 

Hi Jason, I own an independent agency in Killington and I would be happy to have one of our agents help you with your search for an STR in our region of the State. I'd love to work with you personally, but I can't take on any new buyers right now. By the way, I've been here in Killington for 30+ years, but am originally from NJ too! let me know if we can assist.

Love the education about our 802 area code, thanks for posting!