Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Max Smetiouk

Max Smetiouk has started 5 posts and replied 35 times.

What's better for heating gas or electric? Building a cabin in a tourist destination that does not have easy access to gas or electric.

So I will need to run electric line anyway and considering installing underground propane tank, is it worth it?

Let's roughly say running electric line is $10k

Installing underground propane tank 1000gal is $10k

What's your experience heating with gas vs electric in terms of warmth? Cost effectiveness? 

Thank you for any feedback.

Post: Amenity ROI debate

Max SmetioukPosted
  • Posts 36
  • Votes 20

Thank you to all who replied. VERY helpful feedback.

@Lauren Kormylo agree that there is a lot more risk and headache with wood burning fireplace. Better option for personal use but perhaps not rental. 

@Andrew Steffens agree that there are overlapping features hot tub and soaking tub in the bathroom. Think that adding overhead heaters in the area of hot tub will solve the problem in colder months.

@John Underwood soaking tub in a bathroom. As others pointed out, there are overlapping features, so does not seem it's worth it. Seems like investing in a more luxurious shower is a better way to go.

Post: Amenity ROI debate

Max SmetioukPosted
  • Posts 36
  • Votes 20

Hello BP Community,

I am designing contemporary mountain 2 bedroom / 2 bath cabin in Ohio with a lot of tourists interest year round and four season weather.

Here's some amenities that are going to be in the cabin:

hot tub on 2nd floor with walk out from each bedroom;

wood burning fire place in great room;

nice fire pit outside;

debating: is putting soaking tub with electric fireplace will be a good investment? I don't see similar features in existing cabins and my gut tells me that it might be nice draw when weather transitions from summer to colder temps. 

What's your take?

Thank you,

Max

It all depends on your location and service. If at all possible try it out first.

I tried it in my home but reception wasn't good. In addition you are sharing with cellular network, which gets priority. So service would degrade as the day progresses.

Post: FREE Online Short-Term Rental Conference

Max SmetioukPosted
  • Posts 36
  • Votes 20

Thank you for sharing 

Very insightful and helpful info. Thank you

I absolutely love this idea! It's abiut touch and convenience = instant gratification and satisfaction.

I absolutely love this idea! It's abiut touch and convenience = instant gratification and satisfaction.

Quote from @Greg Scott:

On a town house, I'd rather have good insurance than an LLC!

If you have a mortgage, most mortgages require you to have insurance.  You may be in violation of a loan covenant.

If you have no mortgage, you are a bigger target for a frivolous lawsuit. Insurance would cover legal costs. If you have no insurance, your LLC would have to pay for the legal defense. So, if you don't mind losing everything the LLC owns, sure, save the cost of insurance.

I'm assuming you've been managing your LLC properly. If you haven't followed solid corporate practices, the lawyers get to go after your other assets too. In other words, you may have zero protection whatsoever.


 Liked you might have zero protection whatsoever!

Quote from @Kory Reynolds:
Quote from @Max Smetiouk:
Quote from @Kory Reynolds:

If you are using the HELOC proceeds to acquire land for a property that will be business use in some manner (a rental), then that interest expense from the HELOC would be deductible against that business project. I'll stay out of the weeds of dealing with potentially capitalizing that interest expense to the land while something is actually constructed.

If the HELOC is being used to acquire land for a property that will be personal use, you are out of luck. Mortgage interest is (potentially) deductible as an itemized deduction on Schedule A only if it is secured by that given property. So if the HELOC is in no way secured by this second property, it isn't deductible mortgage interest. If you took out a separate loan secured by the second property, and that will be used as a second residence, then it is potentially deductible - subject to all of the other limitations of personal mortgage interest like the $750k balance cap.


 Thank you Korey,

it does leave some options. In order to show land is acquired using Heloc from primary residence, does it need to be in LLC or other legal structure?


No, just document what happened and how the proceeds are used over time. An LLC provides no credence to a given tax position - it is primarily just a means of legal liability protection.


Kory, so if I understand, create trace from HELOC distributions and tie to airbnb activity via receipts or documented transactions for that activity.

Example: bought land with HELOC - show date, purchase price, location, account for other HELOC proceeds in similar fashion?

Thank you 

Max