Package 2 rentals + 20 horse boarding facility
Hi Guys. I have a horse crazy wife who is also a realtor. We want to have an investment property this year and we have a opportunity to purchase a boarding barn with two rental homes attached. One home is small and will bring in between 500 and 700 per month. The second home should bring in 1400 -1600 in rent. The boarding barn is currently collecting 350 per horse and has 13 horses. It has the capacity for 17 horses. The owner currently charges very little in rent to keep income low for taxes. Most stables in the area charge 450-550 in rent and sometimes up to 650. They do not have marketing or training in place. Our plan would be to incrementally raise rates and offer training. The facility has a large uncovered arena and is attached to a state park with riding trails (big advantage). My wife would like a horse of her own again, she’s had them in the past. We would be looking to net a small profit (like a rental) and cover her horsey needs. My wife has a business degree and is familiar with running a small business. She also has always had horses and worked at a boarding facility for several years past. What questions should we be asking ourselves - we ARE aware insurance for CCC will be costly and have that on our list. Business loan would be 450-500k