Home buying thread
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TheBeagle
JunkiesNetwork Donor
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There are more new RV lots around my neck of the woods than new neighborhoods. $500+/ month for a spot on all the ones Ive seen. Those things are going up everywhere with so many people getting priced out of owning or even renting a home.
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This is the foreseeable future for new home owners. Trouble is, when the market tanks heir trailers won’t be worth anything. People are putting tiny homes in these lots, that’s probably more sustainable.
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TheBeagle
JunkiesNetwork Donor
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Cant look at an RV as an investment like you do real estate. Just think of it as, Hey, when we finally get a real home we'll have an RV to enjoy travelling with. I have my house already, got it before rates went up, but am looking at campers right now. Not only for traveling, which I want to do more of, but its a nice back up for when/if shit hits the fan.
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reavor
I'm With HER ♀
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People saying homes are unafforable and prices are way too high, yet home prices are stagnant/dropping compared to a few years ago.
TJT
Mr. Poopybutthole
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Jysin
Bronze Baronet of the Realm
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Home prices are the problem because it also is directly correlated with property taxes and insurance. Lowering rates helps a touch, but overpaying on house price locks you in to high taxes and insurance for life.
All of these pressures need to be factored into the affordability equation.
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Sanrith Descartes
I was forced to self-deport from the /pol thread
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I have a client with an RV park they own. Its a very low six figure net profit each year.
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From what I have seen which is very little there is a huge variability in trailer parks. Some look like pure trash where people live very short term and a fair number of the trailers may be 40 years old or whatever. Then some are very nice, spaced out, manicured, have newer more modern trailers that look like they get more long term usage. Not sure how they separate the two or attract the group they want.
In college I knew a few people that lived in one and it was semi safe but obviously had a lot of people moving in and out often. It wasn't great, but it wasn't pure trash either. I don't know what they paid and I visited a friend that lived in one once, it was "okay". At the time I lived in a duplex made from an older house in town on an acre that cost $250/month so guessing they paid less 30 years ago.
In college I knew a few people that lived in one and it was semi safe but obviously had a lot of people moving in and out often. It wasn't great, but it wasn't pure trash either. I don't know what they paid and I visited a friend that lived in one once, it was "okay". At the time I lived in a duplex made from an older house in town on an acre that cost $250/month so guessing they paid less 30 years ago.
Daidraco
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Just depends on how much money the owner invests/spends on the "park", and how the contract is binding for those in it. I generally own almost all the trailers in mine, with my oldest trailer dating back to '92. Which doesnt seem that old, but bro... ha! I finance the move for trailers to and from, if theyre "worth it" - and between that, the fees, the interest, etc. - most trailers end up being mine "when" they default. I charge between 300-500 a month just for lot rent depending on location/lot size. Trailers rent for 800-1200. Im picky over my clientele and generally try to find the stereotypical "Grandma that drives a Camaro, smokes cigarettes and gambles at the casino as her vacation" type of person. Go ahead and put your gnomes in the yard lady, I dont care.
The plumbing, electrical, road upkeep, yard upkeep, etc. is all handled through my own property management company. So its manicured so to speak. Those trailer parks that put the responsibility on the tenant are trying to save a dollar, but its costing them a higher money opportunity later on. Management is everything.
Trailers are easy to repair/remodel, too. Most of your parks are grandfathered in and are against the "rules" of the county/city, now. So thats why theyre worth so much money if you're curious.
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Sanrith Descartes
I was forced to self-deport from the /pol thread
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Just to clarify, there is a difference between mobile home parks and RV parks. I was surprised by how many people live full time in an RV until I moved to this neck of the woods.
Sheriff Cad
scientia potentia est
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Do you have a thread anywhere talking about your trailer park business?
How did you manage to get started in that? Like what made you go "ya know, I should buy and operate trailer parks" ?
Control
Golden Baronet of the Realm
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I think a lot of the nicer places have age limits on the residents, 50+ and no kids or something like that, basically little retirement communities. Wife's aunt and uncle took and rv trip around the country staying at places for a couple months at a time. The one they were at near us was a nice place, mix of trailers and rvs, some long term and a lot of seasonal rv'ers. They had community buildings/activities and a tiny golf course on the perimeter. Definitely not what comes to mind when you think "trailer park". I think they also limited the age of the rv's and tow vehicles to keep junkers out. I forget the number, but I was surprised at how recent it was, so they were definitely going for the "retired, sold my house and bought a camper" crowd instead of the "I can't afford a house" crowd.
Daidraco
Avatar of War Slayer
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The previous owner ran it into the ground and was selling it for basically the value of the land that it sat on. The pipeline was getting ready to come through here at the time and I thought it would be a perfect opportunity, to be blunt, extort the people that are working on it with high rent / short term places. Im lucky in the regard that the bank would only give a loan on the value of the land - which just so happened to be what it was being sold for. Since Im already in property management, the unlawful detainers, writs of eviction, liens, etc. I already knew about from a residential and commercial standpoint. As much as I hate to say it this way, after the inventors were removed and standards were put in place for new tenants - the park almost instantly came out of the red.
I dont see it as special enough to warrant a thread about it. I think the shit you guys talk about in the Investment thread is much more informative / worth the time to learn about.
Intrinsic
Person of Whiteness
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Cad
,
Gravel
I owed both of you a response and was making a draft throughout the week but it looks like it timed out or something. Was just difficult to get to everything with the family medical issues all week. It isn't 100% relevant anymore as I did officially decline the W-2 offer.The basic short story is that the internal company shares I'd receive could continue growing at something approximating the company's recent performance which was roughly 33% CAGR over the past 3 to 5 years. With the $225k retention bonus, a $100k personal investment, and the 1:1 match, I would start with roughly $527k in shares on day one.
Even if future growth slowed to a more reduced level, that initial lump sum was a major advantage from a time value of money perspective. Beginning with over half a million invested now was more powerful than starting from "$0" and building that position through $10k-$12k monthly contribution out of my surplus cash flow. Even taking my personal out of pocket cost and the taxes on the match (approx $200k or so), the net starting position would still be significantly higher.
There's also the argument that the lump sum represents "forced saving" as there not a 100% guarantee that all my surplus cash flow goes into investing. We've done what we can to max 401k, SEP 401k, Roth IRA, HSA, and then brokerage. But we also do stuff like save up cash in MMF to do things like what we're currently doing to buy land and build a house. But that also got into my "soft costs" when looking at the opportunity.
While the future estimated growth was higher, the overall flexibility of cash flow as a 1099 to do whatever we want means a lot. Our only debt is the current house and one car. We have a second kid starting daycare in about 4 months. But even moving forward with our build in our worst month (two kids in daycare, two mortgages before selling primary house) we're still like $8k+ net positive cash flow). That just doesn't happen under W-2 and a $160k or $175k base salary. Sure, maybe the bonuses make up for it, and sure maybe the internal shares continue to recognize 33% growth. But the speculation just isn't worth it, I think.
I have an alternative strategy that includes a joint venture with a friend, and it may work out better in the end. There's a lot of politics in the background as normal. Another friend was interested in doing business, but he basically didn't want to compensate me at all for bringing him a $13M contract and growing his own business, AND he wanted to reduce my hourly rate. Just going round and round negotiating and trying to do what's best for the client and me.
Even if future growth slowed to a more reduced level, that initial lump sum was a major advantage from a time value of money perspective. Beginning with over half a million invested now was more powerful than starting from "$0" and building that position through $10k-$12k monthly contribution out of my surplus cash flow. Even taking my personal out of pocket cost and the taxes on the match (approx $200k or so), the net starting position would still be significantly higher.
There's also the argument that the lump sum represents "forced saving" as there not a 100% guarantee that all my surplus cash flow goes into investing. We've done what we can to max 401k, SEP 401k, Roth IRA, HSA, and then brokerage. But we also do stuff like save up cash in MMF to do things like what we're currently doing to buy land and build a house. But that also got into my "soft costs" when looking at the opportunity.
While the future estimated growth was higher, the overall flexibility of cash flow as a 1099 to do whatever we want means a lot. Our only debt is the current house and one car. We have a second kid starting daycare in about 4 months. But even moving forward with our build in our worst month (two kids in daycare, two mortgages before selling primary house) we're still like $8k+ net positive cash flow). That just doesn't happen under W-2 and a $160k or $175k base salary. Sure, maybe the bonuses make up for it, and sure maybe the internal shares continue to recognize 33% growth. But the speculation just isn't worth it, I think.
I have an alternative strategy that includes a joint venture with a friend, and it may work out better in the end. There's a lot of politics in the background as normal. Another friend was interested in doing business, but he basically didn't want to compensate me at all for bringing him a $13M contract and growing his own business, AND he wanted to reduce my hourly rate. Just going round and round negotiating and trying to do what's best for the client and me.
On the topic of the home build! We received a draft floorplan back for our 1st floor. We're okay with it as a starting point. No upper level yet or elevations. He was trying to get us something to review before he left for Thanksgiving with his family. I did this quick 3D render in SweetHome3d. It isn't 100%, left a couple of windows off here and there and I know doors are wrong. Window types are definitely wrong as I was just learning the program.
2600 sqft heated lower level
The right side of the plan is (top to bottom):
- Master
- Master Bath (separate toilet)
- Master closet
- Laundry
Off the kitchen in the middle of the wall is Pantry.
Above that is garage storage.
Mudroom is below Pantry.
One thing I don't particularly like is the entry way. I want to suggest opening the stairs up to the entry and opening that area up. Remove that little "reading nook" by the stairs today and make the half bath a full bath or something. Also considering telling him to take 5-8' out of the middle of the house. Like... where that reading nook is by the stairs. That is 5'-8" and if you remove it and just squash the whole house, I don't really think we lose anything.
Right now from the range to the TV wall in the living area is 42' and that's freaking far. I stood at the back of our laundry room and shot a beam 42 through our kitchen and through our current den to see what it would feel like and holy smokes. I'd need a 200" TV just to see anything from the island. Few other tweaks we've sent feedback on for master related stuff. Hard to say exactly some stuff without knowing his plan for upstairs. Like, can we do a vault in the living area, how are the kids' rooms laid out?
Lanx
<Prior Amod>
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you want to you have your countertop right at the stairs, youre carrying a big bowl dough and it flops down the stairs, your wife is chopping vegetables and crying from the onions and the knife slips and flys out of her hand onto the 1st, or whoever is under the 1st floor.
The basic short story is that the internal company shares I'd receive could continue growing at something approximating the company's recent performance which was roughly 33% CAGR over the past 3 to 5 years. With the $225k retention bonus, a $100k personal investment, and the 1:1 match, I would start with roughly $527k in shares on day one.
Even if future growth slowed to a more reduced level, that initial lump sum was a major advantage from a time value of money perspective. Beginning with over half a million invested now was more powerful than starting from "$0" and building that position through $10k-$12k monthly contribution out of my surplus cash flow. Even taking my personal out of pocket cost and the taxes on the match (approx $200k or so), the net starting position would still be significantly higher.
There's also the argument that the lump sum represents "forced saving" as there not a 100% guarantee that all my surplus cash flow goes into investing. We've done what we can to max 401k, SEP 401k, Roth IRA, HSA, and then brokerage. But we also do stuff like save up cash in MMF to do things like what we're currently doing to buy land and build a house. But that also got into my "soft costs" when looking at the opportunity.
While the future estimated growth was higher, the overall flexibility of cash flow as a 1099 to do whatever we want means a lot. Our only debt is the current house and one car. We have a second kid starting daycare in about 4 months. But even moving forward with our build in our worst month (two kids in daycare, two mortgages before selling primary house) we're still like $8k+ net positive cash flow). That just doesn't happen under W-2 and a $160k or $175k base salary. Sure, maybe the bonuses make up for it, and sure maybe the internal shares continue to recognize 33% growth. But the speculation just isn't worth it, I think.
I have an alternative strategy that includes a joint venture with a friend, and it may work out better in the end. There's a lot of politics in the background as normal. Another friend was interested in doing business, but he basically didn't want to compensate me at all for bringing him a $13M contract and growing his own business, AND he wanted to reduce my hourly rate. Just going round and round negotiating and trying to do what's best for the client and me.
On the topic of the home build! We received a draft floorplan back for our 1st floor. We're okay with it as a starting point. No upper level yet or elevations. He was trying to get us something to review before he left for Thanksgiving with his family. I did this quick 3D render in SweetHome3d. It isn't 100%, left a couple of windows off here and there and I know doors are wrong. Window types are definitely wrong as I was just learning the program.
2600 sqft heated lower level
The right side of the plan is (top to bottom):
The other two rooms downstairs are Office 1 and 2 (or Office and Playroom).
- Master
- Master Bath (separate toilet)
- Master closet
- Laundry
Off the kitchen in the middle of the wall is Pantry.
Above that is garage storage.
Mudroom is below Pantry.
One thing I don't particularly like is the entry way. I want to suggest opening the stairs up to the entry and opening that area up. Remove that little "reading nook" by the stairs today and make the half bath a full bath or something. Also considering telling him to take 5-8' out of the middle of the house. Like... where that reading nook is by the stairs. That is 5'-8" and if you remove it and just squash the whole house, I don't really think we lose anything.
Right now from the range to the TV wall in the living area is 42' and that's freaking far. I stood at the back of our laundry room and shot a beam 42 through our kitchen and through our current den to see what it would feel like and holy smokes. I'd need a 200" TV just to see anything from the island. Few other tweaks we've sent feedback on for master related stuff. Hard to say exactly some stuff without knowing his plan for upstairs. Like, can we do a vault in the living area, how are the kids' rooms laid out?
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i could also see, paying attention to a recipe, reading it, while holding a knife in hand and then slip on the stair and roll down
if it was stairs leading up, thats a different story
also this is where "traffic" will go? as in you pass thru the kitchen to go somewhere? what the fuck is on a stove a lot of the time? fire, whats underneath the fire? pots and pans, with handles and ppl always have those handles facing out, ppl are going to knock a pan over just from the handles sticking out, stove on or not.
Intrinsic
Person of Whiteness
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I think something has been miscommunicated due to the perspective in that screenshot and the lighting. Trying to work on making it better but not a lot of time to learn a whole new program. The guy making the plans will be providing actual 3d renderings. I'm just trying to visualize.
No idea what you're talking about with the countertop being at the stairs. This is all the 1st floor, there's no representation of a 2nd floor here. So yeah, not following your whole first thing. Oh, you mean that other photo of the stairs going up? Thats just odd perspective. The stairs don't actually move as much as the entry changes to the entryway. I'll try to get a picture of the change but it is on my laptop.
There's an exit from that hallway that goes around the kitchen area so traffic doesn't have to come through.
Lanx
<Prior Amod>
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