Have a paid for dream property that we want to build a house on.....but would like to put more money down to reduce Monthly mortgage payment.  

Currently we live 3 miles away in a house worth $250k that we owe $150k on.  1800sf 3 bed 2 bath good neighborhood.  It was a live in Reno flip we did in 2020. Now we are enjoying it while the market goes bonkers with all the folk from New York and Jersey flocking here. ??????? Wife’s in real estate and has run the comps.  My job is steady.

Early 30s, wife, 20 month old and one on the way.  

Housing Market is good here, plan is to wait 11 months so we don’t have to pay capital gains tax on current home and Then sell. In the mean time finish building onto my Ag barn/building for a 750’sf “cabin”.  Basically a 3 bed 1 bath.  2 small bedrooms (Oversized closets) for the kiddos.

Wife is completely onboard, we will he debt free, living on the property Where we want to be and have 75k-$100k ready to start building with.

Should cost around $20k to complete and I can write it off as a ag business cost on my small farm.

Crazy? Worth it? Pros? Cons?

Obligatory picture of the farm family ??

Attached File

Sounds like a good plan. How much land do you have?

11 acres at the end of a rock road bordered by a creek and wetlands. No flooding with ample privacy.

Sounds like a plan. A good friend of mine did that 30 years ago. He built a 30x40 garage with a barn roof design. The second floor was master bed and bath. Ground floor was 2 bedrooms efficiency kitchen, den and another bath. They lived in that for a few years until house was built. The bottom floor was then gutted and is used as a barn the second floor is guest house.

Similar design

I'd just say to pay an actual accountant for a written opinion on that proposition.

Good point.  We have to be within the “law”.  I was told to keep a detailed list of all costs on a spreadsheet to turn into the accountant each year.  I did that this year on my taxes and there were not any concerns with the building material purchased.

I have a CPA, since it’s an agricultural building/office it qualifies. The cabin can be used for farm tours (Already conduct tours) and guests after I move into the house.

Since the existing facility already is power and water inspected by the county....the county does not require further inspections on additions.  I checked with them first.