I’m now the proud owner of a partially completed second home. Okay, we are going to call it a cabin but it’s a 30X32 building. The first floor is all one large garage. The second floor is a two bedroom 1 bath apartment, I guess you’d call it. When it’s done it will have hardwood floors and granite in the kitchen. I’ve been looking around and granite really isn’t that expensive for a smaller kitchen. My family will be helping us finish it. We plan on doing all the wiring, plumbing, and most of the other finishing work. I’ll probably sub out the insulation and drywall, but we’ll do the rest.
For those of you that are wondering if I’ve fallen off my rocker, I haven’t. Basically I saw this as a great way to increase my net worth over time and also enjoy having a place out by the lake. Because we got a great price on it from a friend, we walked in to a little instant equity. About 30K to be exact. Once the place is finished, we estimate our equity in it will be around 60K. We don’t plan on selling it, but it’s good to know that it is one more asset that is appreciating in our portfolio. While cash flow is going to take a bit of a hit for awhile, I think it’s going to be worth it. My wife is going to go back to work, at least for awhile, so that we can pay cash for the rest of the construction. The goal will be to own this free and clear as soon as possible. The good news is that we will be writing off all the interest that we are paying for it, because we used some home equity to cover the purchase cost. (Oh and believe me. It was a fixed rate. I don’t need any surprises)
I’ll post a picture of it once we get it roofed and sided.
Sounds fantastic.
Nice friend to give you 30k. I need friends like that.
Yes, he was very kind to do that. He was receiving other offers for 30K over what he sold it to me for. I was very grateful.
Nice, I don’t think even my parents would sell me something with a 30k discount :-)