Poor Shaggy Investors Thread for the Surly

[Slacks 6819]

Get rich or die trying...

Catch all for kicking around investing ideas, successes, failures, lessons, and other stuff...

I'll begin...

GE stock is down almost 50% over the last year...  and is at 1996 and 2009 recession levels...  i can't imagine the company won't get some of it's shit together... i have a 10-20 year timeline.   Normally, I would throw money at VTI and BND and keep it moving, but GE always seems to rebound... and the 3%+ dividend won't make me sad, unless it goes away.

It can't be worse than buying a BBQ trailer, right?

what say ye?  

[686 3446]

Good thread idea.

Did GE sell their consumer electronics division?

How many individual stocks do you own, and at what rough percentage each of your portfolio?

I hate trying to pick stocks. I'm in about 15 mutual funds, mostly Vanguard.

 

Has anyone read/followed Sovereign Man? https://www.sovereignman.com/ 

Somehow I got on their email list, really pushes a lot of developing market (mostly South American) stuff based on the arguments that US stocks are overvalued and the US economy/debt/tax situation is poised for a rough run in the not so distant future. His general point is "the US is fucking up is fiscal position, if you want a Plan B in case paying the tab for this isn't to your liking, there are solid companies to invest in down here in that will earn you good returns and get you a passport/dual citizenship to boot". His logic is hard to argue with, I just don't know if his investment ideas are a ponzi scheme or something.

[Yarbr 123]

One thing I'm learning in this current market is on the down days you're looking to buy, wait for the last hour, so called power hour. Seems everything, today being FMSA, goes to shit the last couple hours of trading. If it rebounds, oh well, buy it another day. This may not be new, but it is to me.

[Anastasis 23456]

I've been watching GE, but am pussy. I am heavy on T. Like uncomfortable heavy. But fuck. 6+%. Give me a fucking break, so I buy more.

I got shit I would like to deploy to something other than the market. Wife got some ideas about landing pad type office space for WAH who need to mix it up, colocated with day care. Real estate play I think. Not sure it makes sense, but wife ready to get out of the grind. So am I.

I like looking at restaurants and shit, but that is so far out of my area of expertise. I would like to run a wing joint with a big bar and tap. At least in my mind. 

[Bone3421 716]

Not stock market investing but last year or so i have been thinking about building some tiny homes on 3 acres i have outside of ft. Worth. Thinking i could do 6 with each having around .4 or .3 acre and then a common area 

Rent them to young people for less than efficiency...estimating in my head i would be all paid up and having straight profit after 4 years

Stepdad is construction foreman and buddy plus brother in law are electricians so wont pay for labor besides some whiskey and a little cash 

 

[Slacks 6819]

On 5/24/2018 at 2:53 PM, 686 said:

Good thread idea.

Did GE sell their consumer electronics division?

How many individual stocks do you own, and at what rough percentage each of your portfolio?

I hate trying to pick stocks. I'm in about 15 mutual funds, mostly Vanguard.

 

Has anyone read/followed Sovereign Man? https://www.sovereignman.com/ 

Somehow I got on their email list, really pushes a lot of developing market (mostly South American) stuff based on the arguments that US stocks are overvalued and the US economy/debt/tax situation is poised for a rough run in the not so distant future. His general point is "the US is fucking up is fiscal position, if you want a Plan B in case paying the tab for this isn't to your liking, there are solid companies to invest in down here in that will earn you good returns and get you a passport/dual citizenship to boot". His logic is hard to argue with, I just don't know if his investment ideas are a ponzi scheme or something.

Right now, I'm in VTI and BND only.  I sold all individual stocks during 2017.  I was holding mostly stuff for dividends, and I traded earnings Q1 and Q2 of 2017, then the market got goofy (to me, anyway.) 

GE sold consumer electronics a long time ago.  They have other stuff they should also sell (Baker and some assets under GE Power).  Old CEO was terrible at acquisition.  New guy seems to have the right idea, but it's going to take years to unwind some bad businesses.  GE would be a "blood in the water" buy for me.

[Slacks 6819]

On 5/26/2018 at 12:15 AM, Anastasis said:

I've been watching GE, but am pussy. I am heavy on T. Like uncomfortable heavy. But fuck. 6+%. Give me a fucking break, so I buy more.

I got shit I would like to deploy to something other than the market. Wife got some ideas about landing pad type office space for WAH who need to mix it up, colocated with day care. Real estate play I think. Not sure it makes sense, but wife ready to get out of the grind. So am I.

I like looking at restaurants and shit, but that is so far out of my area of expertise. I would like to run a wing joint with a big bar and tap. At least in my mind. 

Day care next to a decent remote office might not be terrible... might as well buy an entire strip and try to get a deli in it, too... (since we're thinking up ways out).

I wouldn't touch a restaurant/bar, except to eat in it.... unless it was my retirement place on a beach somewhere...

I don't know what I think about T.  As a Uverse subscriber, I think the tech is a dinosaur.  They better figure out a way to get better user experience at a lower price... quickly.

[Slacks 6819]

On 5/26/2018 at 2:00 AM, Bone3421 said:

Not stock market investing but last year or so i have been thinking about building some tiny homes on 3 acres i have outside of ft. Worth. Thinking i could do 6 with each having around .4 or .3 acre and then a common area 

Rent them to young people for less than efficiency...estimating in my head i would be all paid up and having straight profit after 4 years

Stepdad is construction foreman and buddy plus brother in law are electricians so wont pay for labor besides some whiskey and a little cash 

 

I keep thinking about something like this...  whether on 3 acres or 3,000.

Buddy of mine has a guy trying to sell 5300 for $11MMish...  some of it borders existing development, so it could be developed...  i don't know how to finance (and support) $11MM.  there is a hunting lease on it generating $56k a year, but that is about one month's interest in $11MM.

 

I still haven't figured out how to make a dollar out of a dime, and it's driving me nuts.

[Slacks 6819]

Any of you Div homies mess around with $SDIV?  It's an ETF paying 7% divs... I'm considering buying after the next Div Dip... more college fund money.

[Sbbruin 21828]

I'm too stoopid/lazy/unlucky to trade individual stocks.  I pay 1% for a couple of managed funds, and hope they know at least something.

[Slacks 6819]

7 minutes ago, Sbbruin said:

I'm too stoopid/lazy/unlucky to trade individual stocks.  I pay 1% for a couple of managed funds, and hope they know at least something.

i mostly do that with stuff from Vanguard...  in my 401k, and whenever I come across some money that i just want to throw in the market and watch it appreciate...

but the most powerful force of all is compound interest... so i also have some dividend stocks that i reinvest in.  I've put some money into them and they just ride...  when i can find 7% annual, paid monthly, i feel like i'm winning...  at 7% (given current interest rates) i want to put $100k in for a $50k payout when my sons are starting college.

 

[Archer 474]

19 minutes ago, Snacks said:

Any of you Div homies mess around with $SDIV?  It's an ETF paying 7% divs... I'm considering buying after the next Div Dip... more college fund money.

What are the fees? I looked at a couple dividend funds but couldn’t find anything that good especially after fees. 

 

Ive been playing around with a Dogs of the Dow and Dividend Aristocrat plan. 

 

 

[hornbri 1391]

35 minutes ago, Snacks said:

Any of you Div homies mess around with $SDIV?  It's an ETF paying 7% divs... I'm considering buying after the next Div Dip... more college fund money.

The fees look a little high...seems too good to be true. 

[Okie State 3804]

I've always wanted to open a bar, but it's likely a bad idea as I'd want it to be the type of bar I like and that doesn't necessarily align with a bar that actually makes money.

 

I'm also interested in ideas other than the market. Not for today, but maybe something I'll be able to start doing in the next ten years or so.

 

Right now I have almost everything in a variety of Vanguard and Fidelity funds. Some company stock too which has done well over the years and I've periodically sold out of as to not be too heavily invested in a single stock.

[Slacks 6819]

What are the fees? I looked at a couple dividend funds but couldn’t find anything that good especially after fees. 
 
Ive been playing around with a Dogs of the Dow and Dividend Aristocrat plan. 
 
 

The fees look a little high...seems too good to be true. 

.58%
http://financials.morningstar.com/etfund/operations.html?t=SDIV&region=usa&culture=en-US

I'm going to throw some money at it.

[dcbc 14465]

I play around with individual stocks on a very small scale for fun. 

Picked up a few shares (about 68) of LGCY about a month ago.  Cheapie O&G stock.  Should have sold when it doubled in price.  But I'm holding out since it has been, historically, much higher.  About 36% up as of today.

Edited June 8, 2018 by dcbc

[BabaYaga 15286]

On 6/1/2018 at 10:55 AM, Sbbruin said:

I'm too stoopid/lazy/unlucky to trade individual stocks.  I pay 1% for a couple of managed funds, and hope they know at least something.

Do you even Index Fund bro'?  Re-balancing is about as exciting i get these days.  

[SimonBolivar 10957]

 

5 hours ago, BabaYaga said:

Do you even Index Fund bro'?  Re-balancing is about as exciting i get these days.  

I love me some VTI.

[Slacks 6819]

I need more income producing assets.

[Guest Lobo]

Market timing a single-issue stock is always a great idea no matter your economic station.  An absolutely can't miss idea.  

Also, if you work for a publicly traded company.  You should rely on them for your paycheck, benefits, 401k match in stock, ISO/NQSO, employee stock purchase plan, and put all of your non-qualified investment positions in the company stock based on what you hear is going well in other departments from folks you chat with at the cafeteria.  

[52-80 19142]

1 hour ago, Lobo said:

Market timing a single-issue stock is always a great idea no matter your economic station.  An absolutely can't miss idea.  

Also, if you work for a publicly traded company.  You should rely on them for your paycheck, benefits, 401k match in stock, ISO/NQSO, employee stock purchase plan, and put all of your non-qualified investment positions in the company stock based on what you hear is going well in other departments from folks you chat with at the cafeteria.  

i heard enron was doing swell

[Anastasis 23456]

2 hours ago, Snacks said:

I need more income producing assets.

If you want to go really slum lord, look at buying a mobile home park. 

[Goofyboy 3268]

I inherited a pretty good chunk of change invested in Facebook and Apple. It makes up 30% of our total portfolio. I keep going back and forth on if I want to sell and spread it across index funds or just keep them both.

Everything else I have is in index funds and target date type funds. Oh, I have a little in real estate.

[Anastasis 23456]

1 hour ago, Lobo said:

Market timing a single-issue stock is always a great idea no matter your economic station.  An absolutely can't miss idea.  

Also, if you work for a publicly traded company.  You should rely on them for your paycheck, benefits, 401k match in stock, ISO/NQSO, employee stock purchase plan, and put all of your non-qualified investment positions in the company stock based on what you hear is going well in other departments from folks you chat with at the cafeteria.  

At one point I had 80% of my 401k in company stock.  LOL. It doubled in value, and I got scary and reduced to ~20%.  It's tripled in value since then.  No shame though, I've been making steady contributions, but from time to time do the what if thing and think about the years of early retirement that I left on the table for doing the right thing. 

[Okie State 3804]

Market timing a single-issue stock is always a great idea no matter your economic station.  An absolutely can't miss idea.  
Also, if you work for a publicly traded company.  You should rely on them for your paycheck, benefits, 401k match in stock, ISO/NQSO, employee stock purchase plan, and put all of your non-qualified investment positions in the company stock based on what you hear is going well in other departments from folks you chat with at the cafeteria.  

This is solid advice.

[dcbc 14465]

I used to buy  stock in Take Two Interactive (TTWO) a couple of months before the new GTA game came out.  Always multiplied my money in short order.

[Slacks 6819]

Market timing a single-issue stock is always a great idea no matter your economic station.  An absolutely can't miss idea.  
Also, if you work for a publicly traded company.  You should rely on them for your paycheck, benefits, 401k match in stock, ISO/NQSO, employee stock purchase plan, and put all of your non-qualified investment positions in the company stock based on what you hear is going well in other departments from folks you chat with at the cafeteria.  

Thanks for the wealth of info.

[Slacks 6819]

If you want to go really slum lord, look at buying a mobile home park. 

I've considered it... I haven't done enough math or dd to make an informed decision... I don't care what the thing is, if it returns, it returns...

Can i buy it right?
Can I finance it? (Preferably asset-backed)
Will it reinvest in itself? (Can it run without me dumping more cash into it?)
Will it run for 20 years?
How Active/Passive is it? (I don't need another job)
Will the taxes get paid?

I usually start there... simple stuff. I should probably have some other smart criteria.

[Anastasis 23456]

One of my really good friends is running some of these deals. I keep telling him to get me in on a friends and family round. Basically as I understand it, the ideal set up is to own the dirt but not the shacks, and be tied into city water and electric with individual meters. Collects rent, and implement a slow escalation. 

[52-80 19142]

collecting land-rent from people of the socioeconomic class who live in trailers.... which is also difficult to move even if you evict the tenant..... good luck.

[HouTex 1866]

I'm too stoopid/lazy/unlucky to trade individual stocks.  I pay 1% for a couple of managed funds, and hope they know at least something.

Pretty much this. I'm 56 and my retirement account, which is in several good funds (e.g. American Funds, T Rowe Price, Fidelity) and is never traded except for an occasional rebalancing, has significantly outperformed the S&P. With a few exceptions, my taxable account didn't do well until I sold the individual stocks and just invested in good funds. For your retirement account, think very long term and leave it alone. Not very exciting or sexy but if you are in your late 20's or 30's you will be rewarded in your 50's-60's.

Just know that with a few exceptions, eventually all businesses fail and/or have very long periods of weak performance. Think GM, Dell, Chrysler, and GE. When it was just a computer company Apple was almost bankrupt and was trading at option value. With hindsight, we all think we can invest in the next Amazon or in Apple at 6. Without a crystal ball it's much harder.

[Anastasis 23456]

1 hour ago, 52-80 said:

collecting land-rent from people of the socioeconomic class who live in trailers.... which is also difficult to move even if you evict the tenant..... good luck.

I don't disagree, but there is a balance of pros and cons I am sure.  Article on the subject...

https://www.forbes.com/sites/brandonturner/2017/07/11/7-powerful-benefits-to-mobile-home-park-investing/#2dca9c2b6e92

 

here are seven powerful benefits to mobile home park investing.

1. Lower Cost Per Unit

When investing in large multifamily properties or single family homes ­ the cost per unit is high.

But mobile home parks allow a person to jump in and acquire more units for less money. According to Lanoie, “MHPs offer the lowest cost investment per unit of any real estate asset class with potentially higher risk ­adjusted returns”.

Most park owners own the land, not the housing units themselves ­ which means that the cost of the investment is typically going to be a lot less in comparison to the number of units owned.

You can easily expect to pay $100,000+ per home or apartment unit versus paying as little as $10,000 per lot in a mobile home park.

2. Lower cost for repairs and maintenance

One of the factors that makes me the most excited about mobile home parks is that I don’t have to work with contractors. To put it bluntly, I hate dealing with contractors. When you’re working on single family homes and multifamily properties, dealing with contractors is a daily hassle.

However, by not owning the actual homes that your tenants live in, it means that the mobile home owner is responsible for the maintenance, repairs, and updates for their residence, not the landlord. While the mobile home park owner is still going to need to account for the expenses of the upkeep for the park, it will most likely be significantly less than what they would pay for the upkeep of the homes.

3. Spread Out Risk

Because mobile home parks allow investment companies to acquire more units for each investor dollar (as discussed above), the risk for loss decreases. In other words: with more tenants, the risk is spread out more. For example, let’s say you own four single family houses, and one of the tenants forces you to evict them and you are left with $20,000 in expenses. Bummer. There goes five years of profit from your entire portfolio. While those kinds of situations are rare, they do happen.

However, when you own a large collection of units, the high cost of those freak occurrences are spread out across your entire portfolio.

4. The Demand is High

Due to numerous factors, the demand for mobile homes inside well-­managed parks is ever increasing. According to Lanoie, new mobile home parks are not being developed due to government zoning, gentrification, and zoning changes.

However, while home prices are climbing to historic levels, incomes for many Americans are not rising. The need for affordable housing is only getting stronger.

Lastly, baby boomers on fixed incomes are retiring in record numbers creating a greater demand for affordable housing that will only continue to grow. According to Lanoie “10,000 Baby Boomers retire each day with an average social security benefit of just $1,294 per month. 75% of retirees have less than $30,000 in their retirement accounts, and the bottom 50% have zero measurable savings.”

More and more lower income Americans and retirees are looking to mobile homes as their chance of still being a homeowner.

5. Less Tenant Turnover

As a landlord of numerous single family and multifamily properties, I know that one of the largest expenses for a property owner is tenant turnover. Cleaning their unit, needing to track down a new tenant, and the lack of income during the vacancy can take thousands of dollars per unit out of the investor’s pocket each year.

But when a tenant owns their own home and simply leases the land ­ turnover drops dramatically. According to Lanoie, “it can cost a tenant $5,000­$7,000 to move their home out of a park and thus 98% of mobile homes will remain in the same location after the second year.

75% of owners expect to stay in their Mobile Homes for 5 years or longer, and a large percentage expect to never sell.”

This means that there is very little turnover and thus very little risk of losing tenants and going through the pain of finding new ones. When tenants choose to 'vacate their homes,' often the owner of the MHP may acquire a new asset that, with a few upgrades, can be sold to a new tenant. The penalty for moving also gives landlords increased leverage when it comes to raising lot rents.

6. “Mom and Pop” Owners

Many mobile home parks are simple “mom and pop” operations. While investors and corporations are starting to catch on to this lucrative industry, most are still small time enterprises. This is great news for potential mobile home park investors for a couple reasons.

One reason is that many of these owners are retired or will soon be entering retirement age and this makes them interested in cashing out of their business. So despite the fact that the demand is high, you can still currently find MHP owners who are interested in selling.

Secondly, many of these owners are not professional landlords. Often times these owners face difficulties in bringing new homes and new tenants into their parks. They also may not have been exemplary with operational standards and income potential. This gives you the ability to buy the parks at a reasonable rate and then upgrade them and/or improve management, thus increasing the current tenant experience and attracting new, stable, long-­term tenants.

7. Less Competition

Mobile home park investing is the best kept secret in the real estate investment industry.

This is great for investors who are looking for a great deal and don’t want to compete with the flood of new investors, homeowners, and institutional investors fighting for scraps with traditional real estate investments.

[JOSEYWALES66 1801]

On 7/8/2018 at 1:05 PM, Snacks said:

I need more income producing assets.

ATT is currently yielding >6% and the management is committed to not cutting the dividend.

Just a thought.

 

 

[Slacks 6819]

2 hours ago, JOSEYWALES66 said:

ATT is currently yielding >6% and the management is committed to not cutting the dividend.

Just a thought.

 

 

already in... Dividend scheduled July 31, yay... will reinvest and keep the party going.

[52-80 19142]

3 hours ago, JOSEYWALES66 said:

ATT is currently yielding >6% and the management is committed to not cutting the dividend.

Just a thought.

 

 

meanwhile the stock itself drops in value, and trails indices by way more than 6%.  so theyve got that going for them, which is nice.

[Slacks 6819]

meanwhile the stock itself drops in value, and trails indices by way more than 6%.  so theyve got that going for them, which is nice.

my time period is 20 years. I plan to DRIP this for 20 years.

[BabaYaga 15286]

23 hours ago, Anastasis said:

I don't disagree, but there is a balance of pros and cons I am sure.  Article on the subject...

https://www.forbes.com/sites/brandonturner/2017/07/11/7-powerful-benefits-to-mobile-home-park-investing/#2dca9c2b6e92

 

 

 

I know people in the Permian Basin doing this - when the fracking madness hit and people were paying $300+ per night to stay at dive hotels, these guys were making a fortune.  They still cater almost exclusively to the O&G crowd.  License to print money.

[HouTex 1866]

On ‎6‎/‎8‎/‎2018 at 10:44 AM, dcbc said:

I play around with individual stocks on a very small scale for fun. 

Picked up a few shares (about 68) of LGCY about a month ago.  Cheapie O&G stock.  Should have sold when it doubled in price.  But I'm holding out since it has been, historically, much higher.  About 36% up as of today.

PSA here on Legacy.  Whoever owns the LP units when the merger/conversion to C Corp is closed, or perhaps when the interests are exchanged--which might be the same time, will recognize income and there likely will not be a corresponding cash distribution to fully, if at all, offset the income.  It should be spelled out (in legalese) in the registration statement associated with the conversion transaction.  So beware.  You could get hit with a 1099 early next year showing some income that will have to be recognized.  Read the filings before you buy/sell.

edit:  out of curiosity I skimmed the registration statement on Legacy's website.  It's way more complex than the above.  Public investors (vs. control persons) might get a break on recognizing income/loss, but the tax basis could be greatly affected--meaning there might be larger income to report when you sell.  It will depend on if it's an IRC section 351 exchange (if not, public investors are hosed).  The company thinks it will be a 351 exchange.  The point is to be careful with Legacy and other MLPs when they are going through a restructuring/conversion to C-corp/chapter 11.

Edited July 12, 2018 by HouTex

[capnamerca 571]

On the tiny house idea ... had some friends trying to make that work here just outside of Austin. The permitting is potentially a NIGHTMARE depending on local building regs. Austin has some stupid shit like minimum sizes for dwellings, and the floor is bigger than you think. Also, ADA compliance on a tiny house is very difficult, and Austin construction regs now REQUIRE things like sidewalks and ramps to front doors on new construction. Political opinions aside, it's really driving up the cost of construction, and since the unit cost of a tiny house is so much smaller, the impact is more obvious. Plus zoning laws for land usage, although I think they were looking closer to Bastrop so that wasnt as bad as it could have been.

[Bone3421 716]

On the tiny house idea ... had some friends trying to make that work here just outside of Austin. The permitting is potentially a NIGHTMARE depending on local building regs. Austin has some stupid shit like minimum sizes for dwellings, and the floor is bigger than you think. Also, ADA compliance on a tiny house is very difficult, and Austin construction regs now REQUIRE things like sidewalks and ramps to front doors on new construction. Political opinions aside, it's really driving up the cost of construction, and since the unit cost of a tiny house is so much smaller, the impact is more obvious. Plus zoning laws for land usage, although I think they were looking closer to Bastrop so that wasnt as bad as it could have been.

Havent checked in awhile...sorry to here they had a rough go

Its something i have been rattling around... The land i would build on is county land outside of ft.worth,joshua,burleson city limits so might have easier time,but its still just in idea mode

[SDG 3319]

Has anybody ordered any products wholesale from Alibaba (china) to sale locally?  I've been thinking about making a small order but there are so many vendors and shipping options I have no idea where to start...  

[Slacks 6819]

On 7/11/2018 at 12:09 PM, 52-80 said:

meanwhile the stock itself drops in value, and trails indices by way more than 6%.  so theyve got that going for them, which is nice.

 

On 7/11/2018 at 8:38 PM, Slacks said:

On 7/11/2018 at 12:09 PM, 52-80 said:

meanwhile the stock itself drops in value, and trails indices by way more than 6%.  so theyve got that going for them, which is nice.

my time period is 20 years. I plan to DRIP this for 20 years.

fast forward 4.5 years... 

Sold $T at $27 (Win).

Traded in / out / in of some cannabis stocks and got caught holding a nasty bag of dirt weed...  big loss that i'm holding forever, because nothing to lose.

Also bought and sold a bunch of other crap and my only winners are $NVDA and $BRKB.

Slightly down in $VTI and $VYM.

25% down on $TSLA (fraud) and $EFC (supposedly big divs, but not 25%)

I guess I'll take the 15% up on $NVDA and gtfo. It'll pay for a year of out-of-state college tuition for my oldest who graduates in May (a year early)...

 

"So you pile some more on your plate...."

[CHIEF 5075]

I've been toying around with the idea of putting in RV Parks. You can put them on cheaper land in 500 year flood plains. I have found a 6 acre tract on the west side of Ft. Worth that has city sewer and water at the back of the property. Much like the O&G guys out in the Permian, a lot of the commercial construction guys buy an RV, and pocket their per diem. My aunt also has property on the loop in Cleburne, a huge part of it is in a flood plain. I have contacts for utilities, concrete, and paving. Put a laundromat in one corner to build a slush fund. My banker would loan me 100% on a purchase and a construction loan, but I think I'm going to see about using family and other investors.

CHIEF

 

[Slacks 6819]

15 hours ago, CHIEF said:

I've been toying around with the idea of putting in RV Parks. You can put them on cheaper land in 500 year flood plains. I have found a 6 acre tract on the west side of Ft. Worth that has city sewer and water at the back of the property. Much like the O&G guys out in the Permian, a lot of the commercial construction guys buy an RV, and pocket their per diem. My aunt also has property on the loop in Cleburne, a huge part of it is in a flood plain. I have contacts for utilities, concrete, and paving. Put a laundromat in one corner to build a slush fund. My banker would loan me 100% on a purchase and a construction loan, but I think I'm going to see about using family and other investors.

CHIEF

 

If you are the documenting / blogging type, I'll read it.  Every time I drive by a mobile home or RV park, I wonder what it would take to replicate and how much money it prints over time...  There are multiple run-down mobile home parks in the Garden Oaks / Oak Forest area of Houston. They have to be raking and the land is a retirement fund on it's own.

I was in Arizona last week... RV Parks galore...

[deadshank 24652]

The RV park that has the kid’s water park on I-10 west of Brookshire and just away from the east bank of the Brazos is doing quite nicely.  
 

I’ve heard from informed sources that a large percentage of the space rentals are weekenders at a higher rate comprised of Houston area types.   They load the brats up for a weekend getaway but don’t have to drive 3 - 7 hours to get away.   The kids don’t know the difference and the parents save on fuel and windshield time.  
 

Pay for spot rental and water park entry.   

[CHIEF 5075]

48 minutes ago, Slacks said:

If you are the documenting / blogging type, I'll read it.  Every time I drive by a mobile home or RV park, I wonder what it would take to replicate and how much money it prints over time...  There are multiple run-down mobile home parks in the Garden Oaks / Oak Forest area of Houston. They have to be raking and the land is a retirement fund on it's own.

I was in Arizona last week... RV Parks galore...

You can put up to about 32 RV spots per acre, but it would be extremely cramped. 20 per acre, you can maneuver and park. They rent from $400 to $450 per month per spot without electricity provided. They make individual secondary meters to put at each spot for electric. I'm working on $10k cost per spot, land, utilities, concrete, and paving. Maybe include a picnic table at each location. That is a possible cashflow of $8k/acre/month. Even at 60% occupancy, you are still grossing $4800/acre/month, more than enough to cover the payment, and still make a profit. 3-4 acres is what I look for, big enough to be profitable, but not too big to saturate the market.

There is a board https://www.workamper.com, where you can advertise for a custodian. I have a friend whose parents didn't quite have enough retirement put back, but they sold their house, bought a travel trailer, and worked at a RV park in Rockport. They checked people in, the wife worked in the little convenient store, he did small repairs, and made sure the lawn service kept the grass cut. They both worked about 10-12 hours per week, got a free spot, free electricity, water, and internet.

The problem with mobile home parks, is the demographic. A lot of folks with disabilities and paycheck to paycheck living live there. You have to deal with squatters rights, and the mobile homes have to be secured in the flood plain according to FEMA rules. They are not mobile and will get flooded in a record turd floater. I wouldn't trust the owners to keep insurance, and since they are semi-permanent you would have to carry flood insurance on them. i have an uncle that lives on my paternal grandparents old place, it is in the 500 year flood plain. FEMA is requiring him to carry flood insurance on his old double wide, as it is underpinned, and the axles and tires have been removed.

CHIEF

[baboso 6054]

On 3/22/2023 at 1:39 PM, CHIEF said:

You can put up to about 32 RV spots per acre, but it would be extremely cramped. 20 per acre, you can maneuver and park. They rent from $400 to $450 per month per spot without electricity provided. They make individual secondary meters to put at each spot for electric. I'm working on $10k cost per spot, land, utilities, concrete, and paving. Maybe include a picnic table at each location. That is a possible cashflow of $8k/acre/month. Even at 60% occupancy, you are still grossing $4800/acre/month, more than enough to cover the payment, and still make a profit. 3-4 acres is what I look for, big enough to be profitable, but not too big to saturate the market.

There is a board https://www.workamper.com, where you can advertise for a custodian. I have a friend whose parents didn't quite have enough retirement put back, but they sold their house, bought a travel trailer, and worked at a RV park in Rockport. They checked people in, the wife worked in the little convenient store, he did small repairs, and made sure the lawn service kept the grass cut. They both worked about 10-12 hours per week, got a free spot, free electricity, water, and internet.

The problem with mobile home parks, is the demographic. A lot of folks with disabilities and paycheck to paycheck living live there. You have to deal with squatters rights, and the mobile homes have to be secured in the flood plain according to FEMA rules. They are not mobile and will get flooded in a record turd floater. I wouldn't trust the owners to keep insurance, and since they are semi-permanent you would have to carry flood insurance on them. i have an uncle that lives on my paternal grandparents old place, it is in the 500 year flood plain. FEMA is requiring him to carry flood insurance on his old double wide, as it is underpinned, and the axles and tires have been removed.

CHIEF

A lot of Georgia State Parks hire retirees to live in their RVs and be campsite supervisors.  Sell bundles of firewood, clean the campsites/yurts/communal bathrooms, etc.  Talked to one of them at Cloudland Canyon State Park.  He does Cloudland part of the year and similar duties at a National park out west.  The bathroom cleaning was a hoot - he had a small electric pressure washer and he just went to town every morning with that and squeegeed the water into the floor drain.  Took him about 10 minutes to do both bathrooms.