FREQUENTLY
ASKED QUESTIONS

Absolutely! The HOA protects the safety, value, and enjoyment of your property and investment. At this time, dues are $150/month which begins three months after you close or when you begin construction, whichever comes first. Since Sky Ridge Retreats HOA is a non-profit, any extra funds will reduce fees in future years or build additional amenities.

We have developed a relationship with a very reputable, reasonably priced property management company, Red River Getaways (RRG). Their client base is very happy with their service. If you sign a 5-year property management contract with RRG, you will receive the following;

• A $3000 credit toward the lot purchase price at closing for lots sold at $50,000 or under

• A $5000 credit toward the lot purchase at closing for lots sold at $50,0001 or above

The community is designed to encourage short term rentals, but you are definitely free to build a personal vacation home or year-round residence you don’t use as a short term rental.

Sky Ridge Retreats is designed as a modern cabin community for vacations and vacation rental income. Only built-on-site homes are allowed.

1. Secure financing, if needed. Most people don’t have the cash on hand to buy the lot and build the cabin. If they do, they may not want to allocate those personal assets in their short term rental portfolio.

2. Design your cabin. There are several ways to design your cabin. Utilize a professional home designer, use an online design or work with the builder you hire to help you. Some of our favorite online design websites are Den Outdoors, House Plans and Truoba.

3. Construct and furnish a vacation cabin. You can work with your own builder or contact a local builder from the list we provide. Remember to consult and follow the HOA architectural regulations. We can also provide a master list of Amazon products to easily furnish your cabin’s basic items.

4. Work with a property manager to market, book, clean, and maintain it. We recommend using our promotion to get a discount on your lot by signing an agreement with Red River Gorge Getaways, an excellent choice for your Property Management. You are welcome to use someone else or even do it yourself, if you have the time and ability. Don’t forget to provide information to the Sky Ridge Retreats HOA to on our future “Rent a Cabin” page on this website.

There are no guarantees, but there is strong evidence of healthy cabin rentals in the area, plus Sky Ridge Retreats has unique assets that stand out.

The tax rate for Menifee County currently is 1.234 per year. That will be $12.34 per $1,000 of the closed price. So if a buyer purchases a lot for $30,000 they would expect to pay 30 x 12.34 = $370.20. Once your cabin is built, property taxes will increase to include the value of your cabin.

There are a number of factors to consider, primarily the price of the land and the size and type of cabin you are building. Construction prices can range drastically depending on these factors, especially with finishes selected (ex. type of exterior, decking, interior kitchen/bath, etc.). On the lower end, construction costs in the range of $150 per square foot. On the higher end, for a more luxurious cabin with high-quality materials and custom features, construction costs can exceed $350 per square foot or more.

DISCLAIMER: THIS INFORMATION IS IN NO WAY INTENDED TO BE AUTHORITATIVE FINANCIAL ADVICE. PLEASE CONSULT WITH YOUR FINANCIAL ADVISOR TO DETERMINE WHAT IS BEST FOR YOUR FINANCIAL SITUATION.

1. Purchase the lot with cash.

Some strategies used include:

• Utilizing your liquid assets.

• Obtaining a home equity line of credit (HELOC). This is typically 80-85% of the equity with a variable rate of return based on the prime rate in a revolving line of credit.

• Taking a loan from your 401K account for down payment. Be aware of possible penalties and repayment clauses that may escalate repayment.

• Getting a land loan (expect more stringent eligibility criteria and higher interest rates compared to a home loan).

2. Secure a construction loan.

Use the land as collateral (subject to lender approval). Your financial institution provides the criteria to access your draws and inspect the building along the way.

3. Consider a “Cash Out Refinance” after the cabin is completed.

This can help you access equity in the property to cover the closing costs and pay back the original land purchase and/or cover the costs of your furnishings. If you have construction skill/ability or can tap into savings in the process, there will be more equity available.