How To Generate $40,000 Per Year Investing In Tin Cans


by Jim Hart - Date: 2006-12-21 - Word Count: 547 Share This!

I have a personal philosophy: If you can't get the little things done, you will never get the big things done. Many people who tell me their strategies about real estate investing… they talk my ears off… and then they run out and do a stupid real estate deal. They pay too much for property, buy in the wrong market, or get a property requiring more work then they anticipated, or the property is "hard to rent". Many encounter management problems, you know duds that won't pay the rent, that kind of thing…

Then I started thinking about an investment idea that not everybody will like but it makes economic sense from a cash flow perspective. Why not invest in tin cans? You know, mobile homes. Look at the benefits:

1. A used mobile home (especially a fixer-upper) can be purchased anywhere from $1,500.00 to $5,000.00 (this is less than most down payments)

2. You could pay cash for it and live in it while you fixed it up (with no payments other than insurance (there is no real estate tax on mobile homes usually).

3. You could invest about $2.500 and really spiff it out. You know, turn it into a real bachelor pad, dedicated weight lifting room, dedicated office, each room a specialized purpose with an outside porch, maybe a Jacuzzi, new insulation, windows, etc. let's say you went over board and dumped $5,000.00 into repairs and spiffs… your total cash out lay for everything say, about $10,000.00 (for a decent mobile home park or location)

4. Live in this thing for 2 years, the second year, take all the money you DON'T pay in principal, interest and taxes and SAVE it for your next acquisition. Then,

5. Source out another little fixer upper mobile home and buy it with the money you saved by not having a mortgage.

6. Then rent the original mobile home out for say, $350.00 per month (utilities & lot rent not included). This little gem would generate a over 35% return on your investment the first year! And this cash flow could be used to fix the second mobile home. Repeat the process.

Here's the point: If you had 10 mobile homes each generating $350.00 per month, that is $3,500 per month, damn near pure cash flow! Or, about $42,000.00 year.

The key to this concept is it meets most of the investment guidelines-buy a fixer upper, rehab the deal, rent it…. Do the next deal. Except, you would have a chance to get a taste of property management on a smaller level while investing far less money. And the cash flow isn't bad. Repairs and maintenance would probably not be a big issue because you just fixed it up, right? And really, you could probably get more rental income then this example because all your mobile homes would be little bachelor pads when you were done with them.

Like I say, it's not for everybody but if you aspire to be a property owner, cash flow generating kind of investor and don't have a lot of starting capital, this is a pretty intelligent way to begin, right? I thought you would agree! You could always sell them and make money too, but the cash flow angle is better.

To your success! Copyright © 2006 James W. Hart, IV All Rights Reserved


Related Tags: money, real estate, profit, selling, investing, buying, purchasing

Be Smart, Visit SBS. click this link http://smart67.com

SBS, Where Smart People Get Smarter Faster...

SBS is an online information resource for individuals and business persons. Our focus is real estate and business information solutions through books, kits and ebooks. We also have free access to dedicated research center with quality links to help you get key information fast including a state-of-the-art news media center. Check us out now and learn how SBS can help you.

Dont's forget to rate this article below! By rating this article you can help Jim Hart better serve your needs for quality article content. Thank you!

Note: Promotional offers within articles are subject to change without notice.

Your Article Search Directory : Find in Articles

© The article above is copyrighted by it's author. You're allowed to distribute this work according to the Creative Commons Attribution-NoDerivs license.
 

Recent articles in this category:



Most viewed articles in this category: