@Maynhia Stott If your focus on high interest rate is solely for getting a higher rate of return on redemption, then I think you would want to emphasize penalty states because many of the states you mentioned, like Maryland, would only yield that high interest after the 12th month.

My name was mentioned as having been the source of information.  

You mentioned that you have an architect you recommend in this area?

@V.G Jason @River Sava @Lisa Jones @Ben Pileggi @Gregory Schwartz @Jay HinrichsAnother silver lining I forgot to mention - Good investing partners.Having solid partners who can share the load (financially or logistically) during disasters can make a massive difference.

As to the buddy I mentioned in Washington state it was the same scenario; he converted tax-free up to their standard deduction but above that he kept within the lowest tax bracket and paid the smallest amount of tax possible.Thank you @Basit Siddiqi for calling me out on this and giving me a chance to address my mistake; it's important people have the correct information.  

He mentioned $125. 

The issue I have seen with these types of properties is they could have two valuations - the value of the real estate which the structures will have little value and you have the land the other is as an operating business just like a bed and breakfast would have - real estate has value but it operates a business now you mention 12k / month but if someone also has to manage the property what is that worth and what would someone pay to manage a property like this?

So in 3 years if you bought a $150,000 house, you would likely have accumulated $12,000 -$20,000 in equity on your $30,000 initial investment - not to mention your tenant paying down your mortgage, plus some really awesome tax advantages (3.3% depreciation, etc.), plus hopefully some cash flow!  

While it is true that the time of year can influence market activity, as others have mentioned, there is usually a trade-off depending on the season.

Assuming it does happen, despite all the obstacles that I mentioned earlier, could you please clarify a few details for me?