Innisfree

Renovations

Innisfree plans to renovate the rental property. Since 70 - 80 percent of the short-term rental profits are realized during the snow season, any construction can be completed during the slow season with minimal impact on profits.

In addition to basic improvements to the existing structure, Innisfree is applying for a building permit to complete an additional dwelling unit (ADU) that would dramatically increase the square footage of the rental house and even allow for two separate rental units on the same property, increasing rental revenue by more than 100%. The renovations will be completed in stages, with the first stage to be completed before listing.

The second stage is contingent on building permit approval and which will be funded either by accrued working capital from rental income or by a second round of investment per the Operating Agreement. The ADU already has radiant heated floors and a roof.

Stage 1:

- Replacing the roof with a metal roof (cost of materials: $5,000)

- Running in-floor heating throughout living area

- Adding insulation (cost of materials tbd)

- Sauna installation ($500)

- Cold plunge purchase ($500)

Stage 2:

- Obtaining permits for ADU ($8-10,000)

- Replacing the septic tank with a larger-capacity tank ($5,000)

- Building bathroom and kitchen for the ADU ($7,000)

- Finishing walls and flooring in ADU ($3,000)

The third stage will consist of adding a second floor to the house, further increasing revenue potential. This stage will have to be carefully timed to avoid major losses in income and will likely be partially funded by additional share offers.

Our partners, Keith Fisher and Pablo Milberg, have years of experience in construction, and therefore can complete these renovations at the lowest cost possible. They estimate that the first stage will cost $15,000, the second stage will cost $45,000 and the third will cost $70,000.