A crazy idea?

[pocono_couple]

So..  in these current times when  so many adult children are coming  home to roost for an open ended stay..    I have been thinking!  (not that any of my kids have come home... yet)   

This certainly may not be an original idea, but  in my head it is     a couple starts out..  builds a small, manageable home ( financially and otherwise)  and life is good -  little or no mortgage.. small expenses to match a small house..  etc.    Then along comes  child #1 and then #2... #n  ( yes i teach algebra)    with each child,  we expand the house.. but  the addition to the house is built in such a way that  22  +/-  years later,   the now young adult  can detach it ,  move it to his or her own property and  it now becomes  his or her little  starter house with no mortgage..   and so the story goes..   

and, in the end..   when all of the kids have gone and taken their "additions" with them,  mom and dad once again have a small, manageable house for their golden years..   no downsizing necessary..  they get to stay in their own home..    and what a wonderful gift to pass on to their kids..   a starter home with no mortgage ( perhaps a  manageable land loan )  ..   

just a thought..  and certainly a number of issues to work out.. but   maybe John - or one of our members  will take it and run with it    jt

[flyingvan]

     We're entering phase II of our plan....Built a small house to live in.  Upgraded to bigger house (different lot) and rented out small house #1.  Rental income allowed us to purchase small house #2 at the beach (covered completely by two rental incomes--itself and the first one) Built small house #3 (wife's dream house across from bigger house)  Now my college aged daughter will be moving in to small house #2 at the beach in a few weeks (After owning it for ten years my wife and I spent the night there for the first time ever last night)  and next daughter will join her in the fall.  They will have a roommate as well.
     Since you teach math I'll throw in some numbers:

House #1.  Mortgage #357/month, rental income $1200/month.  Depreciation write off $6,000/year.
Bigger house--Living in..Mortgage $1100/month.  No depreciation since we're living in it.
House #2 at the beach--Mortgage $1200/month, depreciation was $7,500.  Will ask tax guy if I can still claim a % of that if daughter's in there with a roommate.  On campus husing would cost $1200/month, X 2 come fall.
House #3.  Own outright.  Not rented, wife's get-away.  Value for keeping her happy is at least half my net worth, income and retirement.

    Tax guy figured out for me if I offset rental income and tax deductions against mortgage payments we're out about $400/month total---for four houses.

   

    Here's what I like about lots of little properties, P_C....We have options.  We could rent #3 if money gets tight.  We could sell a property and not change our way of life.  We are depreciating properties that are appreciating.  We have a variety of options of where the kids, or us, can move to---we'd love it if one of the kids raised their family in bigger house as we downscale back to a smaller home.  Since we live in wildfire/earthquake/snowload/wind extreme area, spreading things out a bit seemed prudent.
    When I retire in 6 1/2 years we plan to move in to house #2 and house #3 and split our time between mountain and beach, one hour drive in between them.

    The reason your plan wouldn't work for me is, putting up structures is easier than claiming pieces of dirt.  I'd rather have dirt to pass along than structures, though both together would be ideal.

[pocono_couple]

sounds like you guys have a neat and effective plan in place!  i agree a few small properties  makes sense in a number of ways..  your daughters are fortunate  to have parents with foresight!   jt

[paul s]

To expand on the idea , a motel would work, need additional space  just  open a door to  the next room, do not need that room let the guy two or 3 doors down take it.

O like a cluster of small  homes linked by storage/ bedrooms,  give and take as needed between the small homes.

not so crazy

if you want crazy look at the tiny houses on wheels, have 3/4 ton truck will haul!!

now if someone like the shipping container guy got  the act together for tiny homes on wheels would be in certain increments with 'docking stations' if u will

going to college,  just undock and haul

Malcolm Mc Lean was the shipping container guy btw

[pocono_couple]

hey paul,  thanks for adding your thoughts..    the motel idea..  there are enough of those for sale  around the country  - but very  sorry to see so many  mom and pop motels bite the dust     as a kid,  that was the way we traveled..   I remember on one trip down south,   a $15 a night motel was in budget..   $18 was stretching it ( but worth it if there was a pool )   and $20  would have broke the budget!     

the tiny house idea..  yup.. i am all over that..  this is from my  thread over on the  owner-builder thread..  I built this last summer..  it was meant to be a  hangout spot 2 or so nights a week, but my wife and I ended up living in it  from july through thanksgiving..  back in our our house for December and the holidays, but we will be back in the tiny house  a lot when january rolls around..






this actually contributed to my "crazy idea"  ..  as my step daughter was contemplating college options,  i offered to build one of these and put it in the yard  for her if she went to a local  community college..    she could have taken it with her  when she was ready to move on..     she did not take me up on it.. but  i still think it was a great idea..    a 2 year degree, no debt, and a house to go!