MH BUS. Plan-$30K/Yr. Income - Posted by Fred-Ohio
Posted by Fred-Ohio on November 19, 2000 at 11:54:15:
Let’s suppose you want to give up your $14.42/hour ($30,000/year) day job and live the good life doing Lonnie Deals. What would it take?
An initial investment of $34,100 to purchase 11 MHs plus a further investment of $34,100 every 42 months thereafter.
If you prefer $60,000/yr income just double the above numbers; $90,000 triple, etc.
How did I come to that conclusion?
$3000 Purchase price for each of 11 mobile homes
$1000 Repair and holding cost for each MH
$900 Down payment received for each MH
$3100 Out of pocket cash paid for each MH
$8500 MH sales price
$7600 Amount financed
12.75% Interest on the financing
42 Monthly payments
$225 Payments to you each month
$30,000 Desired yearly income-or—
$2500 Desired monthly income
11 MHs in your portfolio required to provide desired monthly income. (11x $225 = $2475)
$34,100 Out of pocket cash to purchase 11 MHs
(11 x $3100 = $34,100)
$34,100 Needed at the end of 42 months to replace the MHs which have been paid off. (Repeated every 42 months)
Note: If you purchase your first 11 MHs, one each month for 11 months you will need $3100/month cash for each of the 11 months and every 42 months thereafter.
$60,000 Yearly income-You will need 22 MHs and $68,200 cash to puchase them plus $68,200 every 42 months.
$90,000 Yearly income-You will need 33 MHs and $102,300 cash to purchase them plus $102,300 every 42 months.
Think about it.
Any comments or questions welcomed.