Land Purchase for Container Home

[Levi Giafaglione]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $13,000
Cash invested: $85,000

This is a new construction build pending funding for phase one. Funding has been secured for phase two.

New Septic System 4k-7k
Propane *500/year lease
Rainwater Collection System 3k
foundation 10k
build private road costs $6400
Solar - 3k (free or reimbursement)
Earthmoving $7/SQFT

ARV: 480,000
Total investment: 100,000

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

The market for preexisting homes in this area are in the half million dollar range. With the land prices super low, and people moving further east in the county I see this as a great brrr strategy.

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

The owner was originally asking twice what he paid for it, even though the property has remained undeveloped and acquired more brush and obstacles. I negotiated to the price he paid for the property.

How did you finance this deal?

How did you add value to the deal?

We will be adding value to the deal by having a prefabricated shipping container home delivered and installed in one day. Once the home is in place, it will appraise within market range allowing to be rented and qualifying for a cash out refinance.

What was the outcome?

Lessons learned? Challenges?

Challenges with the property is our advantage as the previous owner doesn't want to deal with costs and time of general contractors

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes.