All Forum Posts by: Matthew Newby

I currently have a 1.3-acre parcel with a 2 bed 1.5 bath home that I built. Sweat equity paid off nicely, we owe $100K on it and it appraised in 2015 for $211K, not sure where its gone since then. We would like to maximize the value of the land by building a second home. The plan is to build a 3 bed 2 bath with a basement studio apartment. Once construction is complete we would move into the basement apartment and put the rest up for rent. The 2 bed should rent for $1200 and the 3 bed for $1600. Looking for input on the best way to finance this type of deal. One caveat that several banks have mentioned is that we would have to subdivide the parcel before we could refinance the second home and get out of the HELOC. I am certainly not opposed to this, but it does add some extra costs and challenges with the first mortgage holder.

Hi!

I've been a long time lurker and I've finally made an account. My wife and I jumped into real estate in 2012 by buying a REO property that was seriously scary looking. While working full-time jobs we were able to demolish the dilapidated house, a garage, several sheds, and clear and clean our 1.3-acre parcel. We then designed and built our own 2 bed 1.5 bath house. Next, we launched our AirBnB business and were able to take some much-needed vacation time thanks to the passive income it generated. We learned a ton during the process and are excited to do it again. I am in the process of acquiring my general contractor license and look forward to doing another build and hold.