New investor and plan for success.
Hello BP community,
I am new to RE investing however I have been wanting to do this for a very long time. I have researched the RE business extensively. I have owned and opetated my own business. I have a resume that backs my ability to do this. I will be happy to share my resume if needed. I have 9 years of total schooling. I am able to completely redo a whole house myself correctly and to code, as well as assess the value before and after rehab, the rehab costs, negotiate and the economics of the whole process. This is my plan.....
I want to buy 20 brand new trailers off the lot and rent them. Yes, I understand the stigma attached to trailers. There is a purpose with that, be patient! These first 20 trailers will cost $20,000 each, then land and setting will be another $20,000. Each trailer will be $40,000 turn key. $800,000 total. I want to rent these trailers for $650 a month. This will produce $13,000 monthly income or $156,000 annually. Each trailer can be sold for $80,000, or $1,600,000 total, a 100% return, minus taxes and such.
These amounts are based on my area and the normal going rental rates and sales of similar properties in the area and talking local agents. I want to start selling these trailers after 2 years of steady income from these properties before the trailer stigma starts to realy take effect. With the profit from selling them one by one and what I will have saved during 2 years, after expenses, I will be able to reinvest the profits in to real houses steadily and slowly one by one and rent those. If for whatever reason I can not sell them I will take out a HELOC on as many as needed to provide a decent amount of capital to start on real house BRRRR. I will be doing this all myself and will have no employees. So other than taxes and legal fees, there will be very little expenses. Once I start renting real houses, at $1,100+ a month, I will keep these houses long term. Then once my revenues gets up over $300k and my reputation gets out and I have many contacts in this industry I have ambition to own and operate hotels - at which point I will hire employees. Then I will have 20+ real houses and a hotel. I plan to buy my first hotel in cash in during my 10th year from the time I bought the first trailer.
Why start with trailers like this and not houses?? Because I want to go all in with this. I work well over full time currently and I do not have the time to do this part time. I hope to quit my job and do this well over time devoting all my time and extra time and all resources in to this. I can not do this while holding a full time job. So if I do brand new trailers to start with, there will be no rehab time I will have to invest in. I can keep working full time until the first 4-6 are built (3-4 weeks depending on weather) and rented. Then I can quit and landlord full time while learning the landlording ropes from lesser properties. All this while the rest are being built rented. My local mobile home distributor can build and set turnkey 3-4 trailers simultaneously for me in 3-4 weeks.
As I said, this is fastest, best way for me to get into this business based on my current situation. I have limited time and funds so this is the best way I can think of to quickly raise both.
I am open to all comments questions or concerns and private messages. Thank you!