Mobile Home/Trailer rental investing
Hi, I am brand new to the idea of rental investing so please forgive any ignorance of standards. If I am way off base I apologize. I am from the Mississippi Gulf Coast (Ocean Springs MS.)
I have roughly 12000$ in cash that I can use when ever I am ready and I am thinking of buying a trailer/mobile home outright to use as a rental property. My father is a carpenter/electrician and is also a very good landscaper and will help me with any property I buy. It seems to me that if I buy a trailer for around 6500-7000$ and then spend 500-1000$ improving the property (new paint, landscaping, fix cosmetic issues etc.) to give it more curb appeal and intend to charge 350-400$ a month on rent that it would be difficult for me to lose on the deal as I would have my money back within 2 years. I intend to do background checks on the renters to limit my risk as much as possible. I am about half way through "The Book on Rental Property Investing" and everything in it (so far) seems it is aimed at much more expensive properties but after I post this I am going to continue reading the book.
He mentions in there to make a plan.
My plan (without a ton of knowledge yet which I am trying to gather)
1. Is buy a trailer and land outright for 6500-8000$
2. Invest an additional 500-1000$ in improving the property
3. Saving everything I get from renting it out and when I reach enough buy another similar trailer.
4. Repeat the process and buy a 3rd trailer.
5. Hopefully after a while of renting all 3 trailer buy a single-family house to rent out (maybe not totally outright but largely outright)
6. Buy a 2nd home
7. Buy a 3rd home
8. Sell trailers and only deal with homes going forward.
I realize this is going to be a long process and I will be saving money from my job as well as the money from renting properties. I want honest opinions on this plan and if I am incorrect somewhere please let me know. I want to be educated on this process. I am honestly not to keen on the idea of financing to much, I would prefer to grow slower with less risk but if you feel differently please let me know. Thanks for any and all advice and I hope to be guided in the right direction by people much more knowledgeable than myself on these matters.