All Forum Posts by: Sam M.

I have a rental property in Western NC that was hit. Access is impossible and it will take a long time for the city to be rebuilt back. Roads are still failing and the first priority, rightfully, is to save lives and help those who have lost a lot/everything. God bless all those who are helping and all those still in peril, you are mountain strong and you WILL MAKE IT.

This post is my intent to document and get others opinions on what rental/vacation property owners can do. I will start with what I know, someone of which may not be accurate but still trying to figure this out.

1. If your property is damaged or even if you think it is, start the claim process now. Talk to the insurance company and see what they are suggesting. In my case, since my property is inaccessible they asked me to just pay whatever I need to pay to get the trees removed, driveway rebuilt, and other remediation - and keep the receipts. I also have the landscape company, approved by the HOA (see #2), using drones to take pictures just in case I need additional backup for insurance. Not sure what to do to document damage inside the house until someone can physically enter.

2. Watch out for scams. This is a huge issue, especially from what I am seeing on FB. Fortunately, I live in a HOA and the HOA has been very proactive in recommending vendors that they have worked with or have approved in the past. Ask around for recommendations, if you don't know who to use or who to call.

3. SBA - if your property is a business, you may qualify for low interest loans. My understanding is that the SBA business physical disaster loan program is the route you go.  The documents are a little unclear in terms of what the interest rates are, but is says "As low as 4% for businesses without credit available elsewhere; up to 8% for those with credit available elsewhere." The amount is up to $2M.

4. State assistance - I have heard that some states offer this. Mine does not. So can't say.

5. Taxes - document your losses (actual cash out, lost rental income etc). When you file your 2024 taxes, depending on how you file, this can help.

Anything else?

If you can rent them, then they are a huge money maker.

I don't recall what we paid for it, but let's say $10,000 and I use it 75% for biz.

So depreciation is $7500 (assume 30% tax bracket, tax reduction $2625) That is a cash in

Then rental say about 75 days @ $250/day = $18750

Less costs (gas, repairs, service, insurance etc, which will also be a deduction from revenues) = $5,000

So Yr1 you are at $16,375 and your machine is all paid for and then some.

I don't have a garage so it is parked on the side of the property.

 We had the same idea and executed on it. Have a rental in the mountains. We use the rental ourselves too. The community has great UTV trails, so bought a Mule (not that expensive and built like a tank) to enjoy the trails. Rent the house and allow people to rent the UTV separately ($200-$350/day depending on season). have a very strong liability disclaimer and contract form. Need proof of insurance, deposit etc. etc. In my case, the UTV can only be driven within a community so that helps. Also, it is a tax deduction. Insurance was inexpensive and it does add something different to the rental experience. Just my $0.02

Banner Elk is amazing. 10 months of the year, there are always things happening. Also, USA Today rated them in the top 10 best ski resorts in the country (for what that's worth).

https://10best.usatoday.com/awards/travel/best-ski-town-2023...

Thanks Greg.

Seems like you have a lot of experience with these properties. Wondering if you could help with another one:

I understand that people bid 88% / 90% of list. There is a house in a pretty popular neighborhood that I feel is priced really well. Do HUD house also sell for over list? Trying to figure out what to bid for this property and no idea. Again, this will be owner occupied.

I know this thread is OLD but had followup questions. Looking to bid on a HUD home close to where we want to live. The home is in bad bad shape. Estimate to renovate and fix is over $100k. So here are my options:

1. Renovate - probably 6-9 months and then move in.

2. Teardown - probably 1-1.5 years and then move in.

In either case, the place will be vacant until repairs or reconstruction is done. Will this still be considered an owner occupied house in either situation? My name will be on the deed etc.

Anybody with knowledge on the Brunswick Islands (OIB, HB, OI) disagree when I say this - "It is better to buy on the western parts of the island, rather than the eastern part."  More erosion happens on the Eastern parts and the terminal groin at OIB or the nourishment projects are only a temp solution. So all things considered, housing prices between the eastern part and western part should reflect this. Talking on the beach or 1-2 rows back.

 How went it?? Is the market softening?

 I see a lot of FL plates while I am in Banner Elk, as well.  Our neighbor lives in FL and rents our his place when not in use.

Pacaso's criteria for buying your property is pretty steep. Also, they are looking at homes appraised in the top 5% of home markets (>$3MM minimum). So if you have a $2MM home, they will not be interested.

Why can't you just setup an LLC and put that home in the LLC. Then have the real estate agent market 1/8 (or whatever fraction you choose) to buyers. If it is an established STR then you have it set-up operationally.