Looking for feedback on an investment idea.
41, married with kids. Worth (my wife and I, that is) around 1.1 million. All bills and debts are paid. Money is in pretty chill, slow stocks (and other things, but all money market related. No hard cash, etc. Own our home and land, but if the market were to collapse, we wouldn't have much).
Have an extra small home that's on Airbnb, and it is doing ver well, so I got to thinking:
Why not buy another home and put it on Airbnb, too? It takes the money out of the market, and puts it in something real.
But, if the market were to drop, I don;t really want a house to deal with. Sure, it's better than waiting for stocks to come back around, but a 200k house isn't going to sell easily if we needed to sell it (with the market down). Seems like only the really wealthy would be willing to buy in those times.
So, again, i wondered about building little spaces on our property. Spend about 50k on each one, make it off the grid, and make them nice. Put them on Airbnb and make some money, and when the market drops (or before), maybe sell them for a little profit. People with money would drop 150k on a tiny little place in the woods that they could call their bug out spot.
So, long story short, is is stupid to build these things, is is savvy, or does it break even and not really matter?
I realize this isn't the proper board, but I've tried biz, and I like out, and I'd like your opinions...
Oh, and...
Someone on b suggested a rental property is the way to go, and I agree it's a good idea. In a recession, we probably wouldn't need to sell this place, and renters would be interested.
It hink I just want feedback on my "airbnb off-grid prefab cabins for immediate small money makng and future potential selling chips and/or places for my family to escape to" idea.
>>>/biz/
sage
>>686285
Maybe I should write it this way:
Hey, /out/, would you consider buying a tiny home off the grid to use as a weekend kinda place? Would you consider it /out/?
>>686155
Vote Sanders.
Check out these people, maybe write to them and they'll help you out.
Frugalwoods, they are doing something similar to what you wanna do,and the Simple dollar, they have good advices on money and all that business, also check out Mister Money Moustash.
>>686339
This is excellent, thank you. The frugalwoods are right up my alley...
>>686326
You could build a cluster of these little cabins and put a Starbucks in. Win/win situation.
Possibly some night life for when innawoods gets boring. I can't tell you how many times we've been camping and talked about doing this and how much better it would be.
>>686383
>go camping
>decide you'd rather rent cabins in close proximity to Starbucks and "nightlife"
What are you even doing on this board? Just stay in the city if you want Starbucks and nightlife....
>>686397
Please, like you've never been camping and thought, or said to a friend "it would be awesome to have a few drinks tonight" or "I could go for a nice cup of coffee this morning"
It doesn't lessen the camping experience at all.
I don't think dance clubs would do good though. Way too sweaty with no showers.
>>686407
I bring alcohol and coffee with me on camping trips though, I don't need to go to a forest cafe or bar for that stuff. I'd rather spend the night around a campfire with a few friends than go to a bar or something.
>>686402
>joking
Guilty.
We stay at a place sort of what OP is saying but not really at all at the same time.
Super rustic (read: falling apart) cottages built I'm guessing somewhere back in the 40's or 50's.
On a lake, around 10 of them. Most of the weeks will be families/friends filling the cottages. I've been the rogue that invades their vacation.
OP it's a losing battle. The owners are paying taxes on the property, not making cash. The cash will come when they sell property they purchased for $10k for millions of dollars.
Anyways, rambling but what was a sleepy town with 1 general store and a very backwoods ideology slowly evolved to be what I described in the 'joke' post.
>>686155
The downside of owning a rental property is upkeep and landlording. If you can afford it, it would be beneficial to set up an upscale rental in a good neighborhood to discourage shitty renters
>>686415
I love those kinds of places. We'll definitely be paying taxes, but can easily make maybe 3x, or 4x in airbnb folks (this is a guess based on what we're doing now and what I think could happen- I may be way off).
One of the major problems is that these places won't have plumbing. I'll supply water and propane and they'll have an incinerating toilet, or maybe a composting one. They'll be DC from panels, and they'll collect rainwater for an outdoor shower. But, no showers in the winter. Eventually, maybe I'll build a place with showers, leach field, nicer kitchen, well. Dunno.
>>686463
So true. We definitely need to look more into just buying a rental unit.
>>686155
The market will crash soon, get out now. Either take all money out and buy up supplies and tools or you're fucked, or invest in gold.
>>686155
If you're into this kind of money, you need to hire professionals, not solicit free advice from anons, OP, regardless of the board.
I've lived in a vacation town my whole life that's for the super wealthy of Chicago (Wrigley family, Shaq, etc) and when times get tough, vacation homes are the first thing to go away. Even the people making millions in a year sell the yacht and summer home.
Buying property isn't a bad idea but if this go south don't expect to be able to sell it as a vacation home. They simply don't sell. A lot of people in my area lost a lot of money in 2008. That $1 million dollar three bedroom home with lake rights losses a lot of value when people can't afford to put a boat in the water much less take time off of work. Recessions hit everyone hard, even the supremely wealthy.
>>686655
The biggest issue w/ any waterfront is taxes. They can be 10X or more what the same property across the street is valued.
>>686678
Very true. A lake near me taxes people by square footage on boathouses and any finished deck, walkway, or patio that's attached to the waterfront. So if you have a walkway from your back porch going down to your boathouse, then you're paying the extra waterfront tax on the boathouse / dock, walkway leading up to your house, AND any outside decks or patios that are attached to your house. It's something crazy like $2-$3 tax per sq foot so some people end up paying an extra $10k a year in taxes just because of that. The only way around it is to have at least a 3ft section that's unpaved and not connected to the waterfront structures so a lot of people just jackhammered 3ft out of their sidewalk or whatever down by the water.
They instituted those bullshit taxes when the public entity that owned the lake defaulted on the bond payments that they used to construct the lake and the water district from the next county over bought all water and tax rights associated with that lake during the bankruptcy proceedings. After the new extra taxes they had the entire 3000 acre lake paid off in like 15 years and are just raking in the money now.
>>686756
If it were me, I'd build trailer style tiny homes, one at a time, sell them individually with the understanding that the buyers can leave them on your property and use them seasonally or take them elsewhere if they like. That way, your investment is never more than one unit in, the houses don't affect your property taxes, and you're not renting anything (renters are assholes).
Are you and your wife FI/RE?
>>686155
What you're thinking of is a hotel.
You'll run into problems with subdividing, zoning, codes, insurance and taxes. In the US you'll likely find problems getting water and sewer as well.
It's a great idea to buy a 1000 acre ranch and subdivide. It's retarded to buy a couple acres and subdivide. Also usually illegal.
>>686655
I agree. These little places will be cheaper, so I'm hoping they don;t fall into that category.
>>686678
>>686756
No waterfront to worry about (or be taxed on, thankfully.)
>>686791
Good point. I was thinking about types of homes that would be considered portable, and therefore non taxable.
>>686807
WEll, we're doing fine with money, but we both work, and will continue to do so for a while.
>>686819
Not really. Currently, the insurance and taxes for Airbnb are pretty simple. If and when we decide to build a septic system, it will obviously need to be sized correctly, and I haven't looked into that. Drinking water probably won't be individual wells for each place, it will be one or two for the "main house."
As far as subdividing goes, it's relatively easy here.
>>686852
>the insurance and taxes for Airbnb are pretty simple
that's probably because you're not doing it legally.
call your insurance company and your assessor and tell them what you're doing.
See what they have to say.
>>687047
It's all set. The state gets a small percentage, and we had to get an extra insurance policy.
Airbnb is legal in most places. I've read that in some cities it's illegal, but not where I live.
>>687054
it affects a lot of different aspects of ownership.
your insurance needs to be for a commercial property, which is expensive. You're also taxed as a commercial property, which in most places will about triple your regular taxes. Most areas also tax you as a hotel on top of that.
airbnb isn't legal or illegal, it's up to you to know your local laws. Most likely you don't. I mean if you think you're going to subdivide a small plot of land and build tiny cabins on them you don't sound like someone that knows the first thing about building codes and business laws in your area.
