we are bale to get hold of some small 53m2 to 63m2 units(5 to 6 square ) and have them transported to a block of land large enough to subdivide. this is very economical as you can sell them as a small 2 br unit for 130k – 140k easily in tas outer suburbs.
this is just one way for us to make some money out of invesitng and it’s a lot cheaper for us than to get 2 units built or do them as an owner builder.
the units cost us $92000 for everything inc single garage ,landscaping, driveways and realestate fees
so our profit will be
$ 38000 per unit x 2 on land which makes
76k profit.
all up we estimate this will take 6 months from purchase of land, subdivision , fiting off of units etc,just wanted some feedback[baaa]
Hi Janetbianka,
the scenario you describe sounds good (who wouldn’t wnat to make $70k+ in 6 months?).
Can I ask how much you are paying for the relocatable homes and where they will be purchased from? My wife and I have a IP in Adelaide that we want to subdivide, it’s not in the best suburb so we’re not sure if we should just sell the land or put a cheap home on it to rent out. Looking on the net I haven’t seen anything for much less than $50k which I don’t think would worth our while.
As far as advice goes on your scenario, just be sure to have a contingency plan as any delay in “construction” or a longer than expected sale time eats into your profit. When the profit is so good I’d be prepared to meet the market if required and still walk away with $50 – $60k then move onto your next deal.
Good Luck
Mike
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