Buy land for $10k, and make $1,500 a month on it?
It's not just possible, turns out it's repeatable.
A thread on glamping and land grabbing:
It's not just possible, turns out it's repeatable.
A thread on glamping and land grabbing:
All started when Kate Hacock told me she bought 3 acres of land in Joshua Tree for $10k (on a Contrarian Thinking call)
She wanted a biz that was low maintenance, low cost, low risk & didn’t have much wear and tear.
A plot of literal dirt appears to hit those parameters.
She wanted a biz that was low maintenance, low cost, low risk & didn’t have much wear and tear.
A plot of literal dirt appears to hit those parameters.
I like Kate, but my motto is question everything, I didn’t believe you could get land in Joshua Tree for $10k. Turns out, joke is on me.
Hundreds of acres for sale surrounding Yellowstone, Joshua Tree, Moab, etc for prices ranging from $5-20k an acre.
Hundreds of acres for sale surrounding Yellowstone, Joshua Tree, Moab, etc for prices ranging from $5-20k an acre.
Anywho, Kate bought the property for $10k (straight cash but definitely some better ways to finance this)
Puts it on two sites: @Airbnb @vrbo under campsites (who knew that even existed??)
Puts it on two sites: @Airbnb @vrbo under campsites (who knew that even existed??)
Charges $50 a night (w/ multiple sites per acre), brings in $1500 a month.
Math break:
Airbnb charges her 3%
Land Tax - Changes a lot by state (but national average about 1%)
Clean-up, oversight - 5%
That’s a 91% profit margin and she’s at breakeven in 7 months
Math break:
Airbnb charges her 3%
Land Tax - Changes a lot by state (but national average about 1%)
Clean-up, oversight - 5%
That’s a 91% profit margin and she’s at breakeven in 7 months
Not to mention the potential appreciation of 3-5%/ year and the tax write-offs if she adds units to the sites.
So Kate takes home $1455 a month on dirt. Not bad. Also quite scaleable.
Does she want to add a manager for 25% of the profits?
That’s still $1095/ month.
So Kate takes home $1455 a month on dirt. Not bad. Also quite scaleable.
Does she want to add a manager for 25% of the profits?
That’s still $1095/ month.
Or a 10-15% return per month, around 180% in a year.
Not bad.
I bought some acres... let's give Kate a run for her money. What else do you want to know? Whole breakdown on CCF.
Not bad.
I bought some acres... let's give Kate a run for her money. What else do you want to know? Whole breakdown on CCF.
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