STR on Vacant land by using a shipping container home

[Christopher Wall]

Investment Info:

Other other investment.

Purchase price: $55,000
Cash invested: $58,500

STR on vacant land in TwentyNine Palms near Joshua Tree CA. It is a shipping container home being converted into a house.

What made you interested in investing in this type of deal?

Airbnb is the next gold rush. The cash on cash return is higher than long term rental. Especially if you have the aesthetics that many vacationers are looking for. Shipping container homes have that uniqueness factor that makes them stand out and get booked with much higher profits than regular homes.

How did you find this deal and how did you negotiate it?

Searched for vacant land on craigslist and offered seller financing. Then went to "amazon" of all places and found a shipping container business and contacted them. Gave them my specs and had it shipped over.

How did you finance this deal?

Seller financing for the land and credit card for shipping container (don't recommend found out later that there is better financing)

How did you add value to the deal?

Renovated the land, added utilities such as solar, and connected water to the meter. Used homebiogas for sewage and reusable gas.

What was the outcome?

Still working on it

Lessons learned? Challenges?

Credit card financing while doable is very expensive and difficult. I have maxed out four of my five cards and sent my credit score down. Once all is said and done will have to work on getting out of the debt. Vacant land is difficult to find comps and do due diligence. There is no address when first purchased so had to go through San Bernardino Co to obtain. The land was originally land locked. Had to get easement.