Let’s do some simple math.. I have 10 mobile homes that rent at $900 per month, spent $5k on each.
$5k x 10 = $50k
$900 x 10 = $9k
Lot rent where my mobile homes are located is $400 per month.
$400 x 10 = $4k
$5k x 10 = $50k
$900 x 10 = $9k
Lot rent where my mobile homes are located is $400 per month.
$400 x 10 = $4k
So in one year let’s see what I’ve made back in my investment..
$9k x 12 = $108k minus expenses (lot rent)
$108k - $48k = $60k
So the first year I made my initial investment of $50k back plus $10k. Year 2 I will have made another $60k so now I have $120k.
$9k x 12 = $108k minus expenses (lot rent)
$108k - $48k = $60k
So the first year I made my initial investment of $50k back plus $10k. Year 2 I will have made another $60k so now I have $120k.
Year 3, I’ve made another $60k, so now I have $180k.
I then decide I no longer want to hold on to these mobile homes and sell them to each tenant for $10k each.
$10k x 10 = $100k
I now have $280k to go and invest into traditional residential or commercial property.
I then decide I no longer want to hold on to these mobile homes and sell them to each tenant for $10k each.
$10k x 10 = $100k
I now have $280k to go and invest into traditional residential or commercial property.
In three years I’ve turned $50k into $280k.. and y’all are asking me “why would you invest in something that depreciates in value?” 😑
