Posted by Tony(OH) on May 08, 1999 at 20:43:59:
Just an idea that I had, your post reminded me of the idea. Here it is:
If you own some land that can be developed (which I have a little), build a very small SFH, or even a double. Ex. - 84 Lumber has a 28’X 28’ basic 2br 1bh house package that can be purchased for approx. 9k. My idea was to sub, or actually do, most of the work. I figure that I could complete this project for about 20-25k. If one was to hold this property as a rental (which was what I had in mind), a small positive cash flow could be had: PI = 253, taxes = 50, water = 15, Ins. = 30 for a total montly of 368. FMV rent in my area would be right at 375. The beauty of this that I have figured this PI at 120pmts! A few of these units could give one a nice positive cash flow in 10 years. Seeing that I am only 28, units of this type could provide 20-30 years of great income.
Just an idea I had, wanted anyone else’s opinion. I guess the big question would be financing.
P.S. This type of rental in my area is a top end rental, in the nicest part of county, and would be in great demand. I of course realize this would not be feasible in most areas. Also, this would most likely have a FMV of 40-45k.
Best of investing success,