All Forum Posts by: Craig Jackson

Great post. Really enjoyed the read. My wife and I have similar success. Out of curiosity Are each of the monthly numbers provided a net after monthly/annual expenses (mortgages, maintenance, taxes, insurance, etc.) If not, what would be your monthly gross vs net not including the new college building?

Unless I'm understanding you incorrectly. If you move out of the house, you have an opportunity to move into a rent/utility free apartment. Therefore, any rent collected would be net gain even if your mortgage is more than your rents. 

In my opinion, what you are losing is the short-term comfort and routine that you are accustomed to in order to achieve a long-term goal. 

Most investors, invest knowing there is a period that it will take before you see a return on your investment. You have to either be willing to make sacrifices or else make a decision to  just stay in the "comfort" zone.

As an investor with a portfolio of 20+ properties it is worth it. Yes I could instead spend my investment money on a half-million dollar home and luxury cars but instead I choose to invest and take chances to set my family and I up in the future.

Don't get discouraged by any negativity. You took the leap, now you will learn from the experience. Experience is a much better teacher than any other method. If so happen you find that your numbers are too conservative, you will be able to make adjustments. Rome wasn't built in a day. It takes time... There will be ups and downs but through it all just continue to move forward.

Prices in Louisiana are around $1,500. The majority of the costs come from labor involved with the removal and set-up, not the actual transport. Also be sure you know the specs on the trailer and zoning for the area and location you are moving to be sure you have no problem with legally connecting utilities and such. Also know the wind zone of the trailer you are attempting to move their each county has specific requirements which may not allow you to move the trailer if a wind zone 1.

Sounds like a good deal.  I would just advise the following due diligence items.

1. Check Pricing and perform calculation

Work backwards, what would an acre lot cost in the area you are buying?  What would it cost per septic? What would it cost per light pole, if already installed, to connect electricity? Use this information to determine the cost vs. value, including the improvements made on the property.

2. Use a calculator to perform your cash analysis. Estimate purchase cost per trailer. New trailers start around $20k and can go upwards to $100k. Be sure to know who pays utilities. (Electricity, Water, Garbage, etc.)

3. Know why the owner is selling.

4. Be sure to check to condition of septic systems and other improvements to be sure there are no additional costs to consider.

5. Research to be sure there are no changes to laws which would prevent you from pulling trailers on the property.

My why is to spend more time with my wife, dedicate more time with my kids and spend more time volunteering to help others.

My wife and I have used a combination of both methods described.  Deals don't wait until you have cash, in those cases time is of the essence and leverage is required. However, historically, we have been very patient investors so when we have used financing the amount has been very minimal. In addition, we use cash and , in the beginning, sweat equity to complete the required repairs.

We believe being risk adverse should be  an important part of your investment strategy so that if/when there is a market correction you become the hunter instead of prey.

Robert some additional advice get at least a couple more renovation estimates and to piggyback on Katherine questions and comments, you should have an idea of the estimated rehab costs per room and have the contactor provide an estimate by room. There are spreadsheets on bigger pockets file share to assist.

The determination of rent/sell is primarily based on your goals and how you plan on utilizing the cash? Based on your strategy and cash flow, you have little risk to be worried about. Continue to sink profits in the business to grow the business.

Let me ask in your state is it required? Also, is it possible to make repair and replacement the responsibility of the tenant?