How Big is Too Big for my First Deal?
My husband and I have been sitting on too much cash. Between a few bonuses at work and then I received a severance package after which I quickly found another, higher paying job - we have close to $300k cash and approximately $5k in "extra" income each month from our salaried jobs after expenses. We want to invest ~$200k but we're beginners in this area!
We have a friend and local realtor who knew our situation and reached out about the following scenario:
RV Park in neighboring city (~45 min drive)
100% Occupancy currently (we're in oil and gas and West Texas is booming)
Sitting on 20 acres but only 8 acres are used for the 52 spot RV park (so room to expand or add revenue stream)
All infrastructure in place including city water, cable & wifi, laundry facilities, home for the property manager, and an engineered, permitted septic. Built in 2013.
Manager in place and desires to continue with new owner
List price: $1,050,000
Average rent after looking at their books for the last 2 years: $450/spot
Average vacancy over the last 2 years: 15%
Right now, this thing at full capacity is flowing close to $10,000 per month! It all just seems too good to be true! ?Someone smack some sense in to me, please! I know you have to bet big to win big... but am I just nuts? What are the major risks other than our oil patch crashing, my husband and I losing our jobs and being in a million dollars worth of debt?? haha