PREPLANNING

FINANCING

LOCATIONS

A Radical Idea

Because lots in close proximity to the ocean are growing more scarce each day, we have developed a somewhat radical idea for those interested in owning Outer Banks rental property: moving a preexisting home on a desirable lot to a less desirable lot or even demolishing a home to make room for new construction. There are several advantages to doing this.

• You can build a brand new home that will increase rentals on your existing preferred lot.
• You can purchase a less expensive lot and have your home moved to it. Then you can either sell or keep and rent that home as well.
• If you already own an existing home on a desirable lot, the financing is often more advantageous to you due to your established equity.
• Smaller, older homes may be too costly to add on and improve up to current codes. For a slightly higher overall price tag, you could enjoy brand new construction on your existing lot location.
• A remodeled 20 year-old home is still considered a 20 year-old home. You’ll get more return out of new construction should you decide to resell.
• You become unrestricted in your search of property. If you are currently looking to buy a lot for new construction, you may want to consider buying an existing “fixer upper” on a premium lot. This increases the number of options available to you.