Making $5K/Month Cash Flow from ONE Property (and Dodging a $100K Mistake)
43:28 Share

Many guests have their sites set on financial independence, and today's guest is no exception. Eating a frugal lifestyle allowed rocky to build capital, to build an R, V, park, which nearly ended in a one hundred thousand or mistake. Now his portfolio cash was five thousand dollars a month.

Listen, and how he was able to do that. This is the real state rookie podcast. I'm actually care and i'm here with tony jay Robinson and .

welcome to the podcast where every week, three times a week, we bring you the inspiration, motivation and stores you need to hear to kick out your investin journey. And guys, we are so excited to chat with a rocky gibs and say about how he's building his real support folio in twenty twenty four. So rocky gives them welcome to the .

real set rooky podcast.

Well before we get into how you ve a accomplish shed all of this thus far, what was IT about realize that attracted you enough?

I mean that that journey y and education on that started years ago for me. So on one of seven siblings, big family on my end. So my sister, she's about fourteen years.

All of the me SHE graduated as a chemical engineer, worked as an engineer, but he wasn't in real state investing. SHE ended up her and her husband, he's in the air force, both very pretty modest money. He worked for the state, not for all our chemical or all gas company.

So for all chemical engineer, people out there go private, pays more. But that being said, you know, he ended up by her first house. SHE wanted to move somewhere else when he got pregnant because he wanted a Better area for her kids, ended up keeping that house and that other house had another kid upgraded.

Houses can slowly but surely after I think like two or three houses IT was like, okay, we're I doing really well on this um financially from owning these homes not only for an appreciation cm point, they leverage some the the equity in their home to do some upgrades and other things in their lives so they ended up buying more houses from there and that so her doing that obviously much uh to the Younger age or older than me at the time you know for me um yeah he told me about SHE told me about bigger pockets when I was like seventeen eighteen years old I mean and obvious ly bigger power is is grown tremendously since then. But I was in college just like ripping through podcast read through these forms. I didn't do a single thing within you that job at the sign.

But i've been in taking uh all this information for years and I ve been really looking forward to IT and doing things with IT. Um and then know ultimately uh after you know about five four to five years, probably look IT earlier and sooner than that really with the purchase of my first home and how sacking which will get into um is kind of wear everything started. But I was I was somebody teaching me and then showing me where the resources were when .

you started to really think about starting to invest. What was the reasoning behind that?

I think the biggest thing was um all the different all the different areas of growth that you see in the reasons that people invest a um even though the major and I probably should have just bought index funds and and left them alone, I decided that you know i'm a gu. I'm a finest major even I working sales and don't do anything with spread ches anymore. I tank on a few stocks.

I was like, god that that i'm an idiot. I was like, no, i've been i've been wanting to get in real estate for quite some time. I bought my first house and probably like my second year at our school. I think I just cleared like seventy eight k on my w two at that point. And I at first of I I couldn't believe that they approve me to buy a two hundred twenty thousand of our home at the time. Um so but you know I knew that I was going to get IT rent out fun funny enough that my girlfriend now wife who had been dating, I think for a year at that point, he heard lisa just indeed. So SHE was actually my first tenant uh my girlfriend now wife, uh, unfortunate he had to share .

my bedroom. Is that how you said? That's how you as well is just get them to be your tenant first.

Yeah I thought you to ask you that's how how I all my tenant so say, yeah know we .

have to go.

That's a really thrown away. It's a year year to two year process. But no, uh, I think I ever like three year relationships shatat.

All my axes is out there. But you know, no SHE moved with me. I told her from the git. I was like, look, I was like, i'll give you a good deal and sheer stand that is close to to your work as a but i'm planning to rent those other two rooms out. So I just need you to make sure that you know that that's happening before you move in here.

So IT sounds like rock that first year was was a traditional house hack and and for folks that maybe aren't familiar with that phrases as you're explaining, but you just give us a quick thirty second explanation of what a house i'd .

actually is yeah I mean ultimately uh you buy you purchase property um and in any extra rooms in the house um you rent them out. Um you know at first I was friends. I had a couple different moved in with me, you know still Young at the time every one of my friends was running unch bunch of guys and new local, that land, obviously exception call friend.

Poor her. I think we had a one female remate one time other than a bunch of dudes. But, you know, so they they paid my mortgage at the time I purchased my house, I think that was two hundred twelve thousand and like four percent thirty year.

No, I did A F H A first, some home bars long. So I think and I ended up over offering, over asking Price so I could ask for the maximum contributions because I didn't have a bunch of cash. And there, like, even at three and eight percent down, IT was like what I know, seven, eight grand or a little bit more.

And else I know I was, I anying got that right. So how do I get this thing? So I offered more. They they help me purchase IT.

But he was.

what year was this rock you? This was a twenty August of twenty. And I started working in january of twenty seventeen. So two and a half years into my corporate career.

I ify one thing, because the strategy that you just outlined is sometimes think a lot of folks aren't familiar wood. So you said you offered over asking so the sellers could help you with the purchase break down exactly what you mean by that.

You know, when he comes to purchasing a home, there is a certain amount of money that the seller can contribute to your closing cost um in your closing costs or you there's there's different ways to look at IT ah there's different pieces of that closing costs, whether that the title um the actual the taxes and escalate and things that they might want up front. And there's also the downpayment itself.

Um now with the F H A first time home bars alone, I was at a three and a half percent down purchase uh but you know even at that amount I think continued in twelve thousand dollars. Look at at seven, eight grand, maybe a little bit more than that way. And that's just on the downpayment, the seven, eight grand.

So there's additional cost in in addition to the dawn payment that you have to actually cover when you're purchasing the home. There's loan origin, loan origination fees. There's pots.

If you're trying to buy down your interest rate. There's a bunch of different factors that I can't list of all in front of. You had to set up, but there is more to adjust than just the downpayment. And I didn't have enough money. So I went above asking Price and asked for the legal maximum that they could give me on helping with those closing costs so I can minimize my out of pocket purchase .

and is a strategy that a lot of investors have used, especially now rates have got ten higher, like go sightly over asking, get a credit back from the seller in the news that credit may be buy down their interest rate, right? Or to help with doll payment or closing costs or or whatever IT may be a Ricky, if you're in the situation where the property that you're looking to purchase will potentially a praise for more than the contract Price, sometimes IT might make more sense to increase the purchase Price and then get a credit back from the cell.

Er for that deltas, you can get help with some some of your your closing console. So according with with your real state agent with your london measure that you're following all local rules and regulations. But just know there are some ways that the cell er can help reduce the cash on the park. Free to purchase some of these two. So thank you for sharing that reckless.

Want to just not clarify that for the those of no for sure. It's it's actually my sister's recommendation at the time, so I didn't I had no idea to do that at the time. So I saved me multiple thousands of dollars on the front end, which every dog crucial at that point of my life.

So Ricky, we want to thank you so much for being here and listening to the podcast. As you may know, we air every episode of this podcast on youtube as well as original content. We want to hit one hundred thousands subscribers, and we need your help. If you aren't already, please head over to our youtube channel, youtube, but 点 com slash at real estate rookie， and submit to our channel more from rocky after a quick break.

Want to invest in real state but don't have the time or know the best local markets. Rent to retirement has you covered and a cures to deal. They've helped thousands of investors, just like you buy, turn key homes across the U.

S. markets. Best of all, they do all the heavy living for you with over two hundred and fifty five star reviews on bigger pockets. Rent to retirement expert, you build strategies to retire early. The real right now, running to retirement, offer some amazing incentives on turkey.

New construction properties like up to thirty thousand dollars off of new build Prices, zero percent down long options, three point nine nine percent interest rates. So guys, don't me out. These deals won't last. Text R E I to three, three, seven, seven, seven or visit bigger pockets out com slash retirements, start investing in top casual market today. I've welcome back to the show were read, joined by rocky gibson so rocky.

during that first deal, the purchase and even the house hacking peace, managing your roommates. What were some of the key lessons that you learned during this time that helped to you with your real state investing journey?

You know, I think I think one of the biggest things at the time was that I was hunting for a house. And you know most of the houses that you got there are just they're not rent ready or there's a lot of projects, lot of we have a lot of work that needs to be done to them. I walked into this one, and I was move in ready, and I was just blown away.

Now, five years later, I realized that josh mo did most of the work that had blown me away as a first time home buyer, and most of the most of the work was crap. Be perfect. Still really happy with the purchase and appreciation in atland as the market has been unreal. So josh mode did a great job, in my opinion, as today, but I think it's that was one of my biggest licenses was like how many things that I missed and didn't check out and you know a little bit i'm a holding over my realtors head from that pointing those things out .

to me um here years later but and I think too like the lesson that was actually learned to was that you still took action and IT didn't end up being a bad deal that yes, there was unexpected things that happened you found out after you close down the deal but down in the road that you said the appreciation you were able to tap into the equity of that property.

And so kind of a word of caution is I think it's battery that you didn't get stuck in analysis paralysis and you did take action on that first steel. Do you have any regrets about that first steel? No.

absolutely not. I mean, it's the home. We've we've poured a lot of money into IT after the fact, I think, for me and my wife and my son for quite some time. And but IT started me down the journey and seeing the pattern just just even the house hacking part, right? And check out to my wife for pin for being the best ten and i've ever .

had but you know five he seems like ict out the one.

They're all gone now yeah actually he was about like six months pregnant before the last one left. And we had bit yeah so I was pretty helped on keeping them until we had a kid. And you know, in the last last three months, I think at every time I came to pay the morning, as I told my wife, I was like, I like this game.

Kids costs me seventy years a month and he has an evening yet I was like, so open to that point literally what he's he was born in january. He was born february. Last person left like last november maybe um but no, I hadn't paid a mortgage h payment in five years, our four years up into that point.

I think that's like that's why the house that is a powerful rocky you did a great job of like explain those benefits, is that you get a good in for a very low downs, yet you are three and hf percent, maybe even even less when you've factor in the the credit you ve got from the seller and you get the ability to reduce your own housing expense at the same time, which for most people's, probably the biggest expense that have every single month. So you you're getting this asset for significantly little cash out of pocket and you're significantly reducing one of the biggest expenses you have as a person living in the united states. So it's a win, win situation.

Eight thousand dollars .

I ever spent. So let's let's all about the next year, roki, because you we set at the beginning that you built in R, V. Park, which I think is an incredible journey and there is probably .

a lot of moving pieces that they went into that. So IT IT was late twenty twenty one. Um at that point, you know I I had had a couple successful years are working in in sales and and a lot I had put back a lot of that money.

Obviously, I maxed out my area four one K I done all that stuff um but a lot of the extra money that I had at the time, I was just putting back in my broker account, you know majority of IT I put the index finds traditional industry vehicles. But there was obviously a couple of those where I think I bought some mean stocks spend too much time on read or something and. And burned myself on a couple of different items.

And I was like, right. And at this point I had maybe like a hundred grand in a broken account. I was like, I don't want to touch my K, I want to see all the the tax havens, right? But at what I do want to do is like i've been talking about IT.

In reality, I wanted to, you know, kind of because there is there like a law there. While I was really focused on my corporate in my w two job, where I wasn't really focused on anything but trying to make more money on my D B two job and I work in sales. So there's there's not really finish line in sales, unfortunately.

Um do you just kind of keep going right? But so at that point, I ve got about a hundred grand. I'm like, okay, cool.

I can turn this into one, two, maybe three rental houses to pinion where I go. I started looking around in atlanta. I was like, all my god, IT lands expensive.

Let me find some less expensive places in atlantic. Then I found some less expensive places in atlantic. Then I went to see some of those places. Then I said there's no way I would ever buy anything in this place. My dad calls me one day heat. My grandmother had passed away a couple at that point, maybe like a year before um what they there is land a duplex in a single family home that was where my dads and my my hts um two different things to one uh you know we were talking a little bit about his there is A A pretty heavy lean from medicaid medicated or medicare was the one that's for older people.

I never remember either.

I never remember either. I'm pretty sure it's medical care. So there is a lean um from medicare. Due to my grandmother being in hospice for about two years, IT was a little over one hundred thousand dollars and my dad was talking about how we got to fig he's got to figure a way to solve that. Um my dad was also talked about, you know he was renting um do both sides of the duplex and the single family home.

He just lost a renter and he was and while we were talking and he's just like he said, you know, I posted on facebook and he's communicating with all these different times people and he's like, I got one hundred people reached out and was like hundred people as the ashland has like as like like ten percent of the population there, right? How did you also want anyway? So IT IT turns out from there.

So there is a cabinet factory in the colony that the land that we own in the in the houses is two miles down the street from. They have like over thirty five hundred employees. I think they do like three hundred eighty million a year in revenue, but people are driving from forty five minister in our way.

There is no local options whatsoever and within the demographic and they're starting at like seven and eighteen an hour for anyone basically off the street. Pretty good money for a lot of people in that area. There's nowhere to live. And it's so whenever one of my dad's properties comes available, it's like he gets umbar ded.

So you know from there I was like, well, what if we tried to put something out there to capture some of that demand, right? I feel like there's plenty of people that need some type of affordable option as obviously going to have to grand. So i'm not going to start building apartment complexes. I was like, so the next year into his mobile homes, manufactured homes um because I actually I went to auburn and I lived in one ah for like two years, which I think everyone is going to say that's the most ama thing ever, but it's totally a thing. And oberon, there's a lots of student trail parts and a lot of people live in them and I really .

enjoyed IT that actually does pretty fun to live a student how we always .

had parties at my house because I actually had a house technically so um but you know I I started to look into that right? Um I mean held the first thing you can look into how much is a first in mobile home, right? I mean now not only what there, you can buy brand new.

Um i'm now I know more because i've been researching because I think I want to still build some now. Now I have the capital available to do so, right. But at at the time I was like, okay, even if you buy a dumpy one third forty grand h forty fifty grand, you've still going to have to fix them up.

You've ve got to pay ten it's five ten thousand dollars to get to move. There are a lay concrete slab I to put the foundation um you know there's city water and and electric, but there's no suit, there's no septic system. So I ended up i've earned a lot about development somehow along the way because anyway, so that IT was just too have a Price point and IT was going to put me into one rental on something that because it's a cash flow play, you're not if you're not necessarily buying building that foreign recision standpoint.

Now the infrastructure in the land itself and the fact that is a cash flowing business is something that can be sold and as a business to someone who might be interested, but is not the same as a as a single family home, that's just going to appreciate you three, whatever percent is per year. So we had to I had to make sure that whatever I was going to do at front was gonna something long term. Um so I was I what about our bees? So as my dad lives like full time in gold shores, alabama in an rv, i've spent time there.

Um and i'm like, it's not bad, like people could do that. I was like we could do that really affordable. I was like, so what will do is we'll put IT.

We'll just build the R V slots, right? People buy their own R V you can buy for like twenty grand um then they could move IT in and they'll just rent from us. And you know we will make five hundred a month and we will pay all the utilities and everything.

cool. I think this is a perfect idea. Um so what I ended up doing from there is I bought the property from my dad. I bought him out on the property.

I also I I negotiated with medicare um for a paid down so we owed a little over hundred thousand and I offered and fifty they took IT immediately which I was like, I guess they never get paid because like I was like, holy hell, we could have gone there I guess um I bought IT for my dad, bought the land um all the houses so that but that was all that was mostly debt on that purchase. And then I still had one hundred thousand dollars for and my broken age out that was going to work with. I ended up spending, I think, roughly seventy five thousand dollars to put in the infrastructure.

So that includes all the electrical work they had to run power of there to put a meter. I had to pay some civil engineers to do different tests and puts some different survey work out there. I had to put in water meters and and water lines, had to put in septic system.

That was probably one of the biggest things. And then I also had to pay like a trying to think of the right word for I just called the dog man. But anyway, he's there in machine, flatten the land, making IT level, and he's also making the individual lights and packing them so that theyll have a good foundation for these campers to be parked on our guys.

We have to take one final outbreak with sicker around to hear how rocky turned his one hundred thousand dollars stake into four figures of month.

Cashala need new glasses or one of fresh new style. Warby Parker, has you covered glasses started just ninety five bucks, including anti reflective, scratch resistant prescription lenses that block one hundred percent of U. V rays, every frames designed in house, with a huge selection of styles for every face shape. And with warby Parkers free home try on program, you can order five pairs to try at home for free. Shipping is free both ways to go to warby Parker dot com slash covered to try five pairs of frames at home for free warby Parker 点 com slash covered。

Let's a jump back in. Let me ask .

because I I want to make sure that the we're given the week is like the the tactical subset because I you took this sleep, which I think is amazing, that sounds like the right deal kind of fell into your lap and you said, hey, let me let me capitalize on this opportunity. But you have never done an R V.

Park before, right? So when you closed on the land, when you actually purchased IT from your family, what was the first step that you took? Even know how I got to start doing all these things, like where you're working with an architect, where you're working with with an rv developer?

No no no um no, I that's a great question. I think yeah, some of this is just a little bit to know how much, okay? I know that this has to be done.

Some of these things are kind of new, but as part of details and giving them accomplish and figuring out who that has going to do the work, there's two people. My dad, a shout out to him, I mean he's he's a local guy, is a small community. So my dads from there, so he knows people right, they can do all these different type of work and knows some of these people that need to do the work. I got two really good friends of mine that work in one worse and residential construction. The other works in commercial ah for commercial buildings for two, the bigger builders here in atlantic IT was anything I didn't know.

I either A I looked to my own network first, who do I know that does anything or might know somebody who does something? And I just started having conversations and started to asking questions, asking for their time, buying them a coffee, buying am a lunch and they will a lot of times you'll teach you um and I think that's even more so now with other things that i've got into a is the same with strangers a lot of times. Funny enough, I feel like a lot of people and really state investors in the community or are really good about sharing their knowledge.

And I think that this, for the Better of everybody, rising tide of ships. Take the I started with my person on network. Anything I didn't know, I wasn't sure about, I just started making calls, whether there was real state agents, whether IT was google searches, whatever might be, or if someone didn't knows something.

They might know somebody who might know something and then i'd call that someone and then they didn't know crappy either. So then I had to call somebody else that they knew and I was just this rabbit hole and IT takes lot of time um that which is not one of the tough for parts of IT. But eventually I landed on all the different information that I need and I knew what had to be done. Then I had to find the people to do what .

needed to be done. What was the timing of that from like buying out your dad to having IT set and ready to go.

probably about a six months period um between the idea come into fruition, uh, securing the funding the purchase from the property from my father and then lining up all the different contractors in the work necessary had done about a six months period before. And there is some there, like I put up a nice fence, I did some other, I did some other things to the power to like put a lot of landscaping and spend a lot of plants. But as far, just like getting to like here's a bigger flat piece of land that's graded and h now you can now park R V S and there's water power hook ups in the whole nine thousand, about six months. So there's a lot of work that was done after the fact.

but yes, six months. And then what was the .

outcome of this property? Yeah I I was like, okay, we're just going to go physical ads. We know the target base that we're going after as a lot of these people that work at this factory, right um and and they need places to live as they.

So I had physical signs. I went out there and we built this fricking out of two by four and dislike a bigger piece of plastic I ve got from some graphic design on my dad new close by. And I went to simply this massive sign into the ground um and yes, so that was are the the peak of our advertising right there sign in the ground? Do not hire me to do a marketing campaign soon.

I think it's super interest rack to you for like knowing your because he said here, we know that the majority of people that are going to end of saying in this place are physically congregating in this one location. So let's go to where the people are and let's not over complicated how much you think you spent on the the big similar sign and .

whatever fires pass out always like six, seven hundred box and probably a bottle ad veil from my back, because that sign was really frequency. But so did IT work.

Like, was IT did you were you actually able to fill those spots without marketing?

We generated a little bit interest, right? And so we had people calling us. They were calling myself. I had my number on the sign. So, you know, my dad, you know, had people reach out to him, but everyone's like, hey, you got anything.

So how much is that? What do you got to rent my yeah just go buy your own thing, right? Pulled up five hundred month month to man, you know you can do your long leases and we will give you a little bit discount if you commit you know, baba ba anyway so nobody wanted to buy a their own, and nobody just sits around with our bees and wants to live in them full time, apparently.

Didn't really think that one through. I was like, well, i've got an R V, Parker that sitting empty and, uh, I need this to work. So I I think what if we just buy the unit? right? What if we buy the unit? What if we put IT in there? And and then we listed IT, right?

I was like, what if we do that? So by unit are you talking a trailer, a mobile home?

Like what kind of its fifth whe it's so we say R V S, I take a lot of people think of like moor homes, right? Like they have an engine in them and they drive pretty much all the units that we have, our fifth wheel, which is a large attachment that they can actually pull the unit behind them. There's also one propose that can actually be pulled off a hitch off the back, your truck.

They tend to be a little bit smaller. I am more cost effective than buying a whole motor.

Massive engine and those are yeah no that so no so IT is just the actual like campet like the piece that you live in that we that we were purchasing. Now to be fair here and a different bear of venture for the people I am from a alam, and we do have drug's, and we ve got a big one and five fifty. So we are able to pull and h go procure and acquire these ourselves.

Uh, I say ourselves, I I, I worked to w to jobs hard for me. Times of my dad retired so I put them to retirement to go hall fifth will campers across the uh across the southeast for me and it's something that he will probably never do again. But we made IT.

So that being said, we bought the first one. There was forty two thousand dollars um I was like, cool. We got a sick deal.

IT looks great. I was like the pictures that was super nice. I was like a twenty twelve um not a lot of use, not a lot of wear and tear.

And we put IT in the park, we hard plum the lines in the electrical, and we got everything kind of like cleaned up. And then we posted IT on facebook, I mean, just like where my dad did with the houses. And then I rented IT out three days later for eleven hundred dollars a month.

And I was like, I was I say I was like, that worked I was like, so we we should do that again, you know and um and in this time, I did have some people traveling that did come stay in the park. I had a few people that came in and now um was charging two week a month to month. And so there was a little bit of income coming off that ultimately I was I wasn't trying to run a vacation center.

I wanted long term a renters. That's what I was looking for right? So after the forty two thousand we went, found another one. This one we ended up purchasing for twenty thousand five hundred dollars rended IT out within a week at a lot of grand a month.

So right, let me let me ask, because I think the question is going to be, in all the listeners minds are, how are you financing all of these purchases? Because you had sixty k ages between those two. Are you getting financing from the deal to buying from you paying cash? Like what national .

finance all about? I pull the money out of my broker, check out I was I think an exact number on that is probably like a one hundred twenty thousand something along those lines. I spent about eighty to ninety a of at that point um I pulled a line to credit out on my house um and and so my house at the time I think I probably IT was worth I think like three hundred sixty or something when I got the appraisal, I only owed like one hundred eighty hundred seventy on IT.

Um so I was able to access a good bit from IT um and um with the property itself that I purchased for my father, there was enough equity in that that I also opened a line to create on IT as well. So I leveraged myself in multiple areas and now after the first purchase, which you was explorer orals like, okay, here we go. I think this works. Then I I opened as many lines credit as I could, and took out on every pizza. Equally.

did you ever go to a dealer and actually get alone on one? Because I don't. Maybe this is just for motor homes, but isn't IT like crazy like you can get thirty years fix straight financing on some of them.

There are a lot there is some pretty crazy finance financing terms. Um you know because of the fact after we had done after we purchase the first one, then we purchase the second one, right? We is just like it's just like buying a car.

You know that you're gonna if you go to a deal ship, you're gonna IT that you could buy that same car if a private party was selling IT for twenty to twenty five percent less. So in our minds, as long as we had the cash, we're able to pay cash and we were willing to put in the network and identify and procure these units at at good Prices, we were gona save more money that way. And that's the route that we went.

Um the deal ships, they they're gonna have charge pretty hard. And so for us wanting to fill out the park, that's what we ended up doing. So I thought everyone of these from private parties, the only one, I mean, we had a couple bad ones, right I mean, drove all the way to missing city one time.

That thing was an absolute dump, and we were both really disappointed. Dad says he'll never driving through mississippi again in his life. So yes, we bought, I ve bought the second that word.

And then just from there I made the last. I purchased the I expanded the part from eight slots to eleven, and I bought the last three units in january of this year. Um so I in total, I bought I own all six units in the part.

What would you say now you've been stabilized for a bit here. What's the overall revenue on all eleven of those?

So right now, they're all the long term leases and IT currently are all least south for ten thousand, three hundred and seventy five dollars. Um and as far as the amount on the R B themselves, I have a cola. I spent one hundred and seventy hundred seventy one hundred seventy five thousand on the eleven units total. Um then you add in the initial infrastructure that I spent on the property by two hundred and fifty thousand or so. Probably there's a lot of Operating costs between here and there, but I think i'm all in around three hundred to three fifty with most of that being dead, probably about one hundred thousand being cash pocket.

And then what do you think you're netty on that turned to half or whatever that number was.

So it's right about on a good month, you know about five thousand of uh forty five to five h but you know I think one of the biggest things in in some of the drawbacks of this right is, is the fact no, I don't having is not necessarily and appreciating asset is a depreciating one, which is why we had such a big, big emphasis on when we are finding the units that you already finding ones that are in good shape and they're only losing so much for year at that point, right by drive one off the lot.

Saying same thing is a brand a brand new car. You're instantly know getting hit pretty hard on on your asset, right? So um I do appreciate them on the taxes with helps.

The other thing being that you madness is a pretty big cost that comes in to play. And most of the units we've had great luck with um but there are times that I had to redo the roof on one. Um what are also looking into til I have covers over like three of the eleven slots, I just haven't had enough money yet to put covers on all of them.

One of the biggest maintenance concerns with an R V in general is the roofs. It's not a question of if they will leak, is a question of win. So if you if you take that part and you remove that from the equation, then you're fine. Um but ultimately, if I can keep them standing up right with the with the margins that we have, um yeah in four to five years, they are completely paid off and then some and you could probably just bAllen up away by a new way to do IT again.

So rocket, is there kind of of financial independence number you are trying to reach with your real stash? You kind of you're looking into detroit, michigan. What are the next steps for you?

I'm not really sure. I think that's one thing that's a bit of a weakness for me is that yeah, I work pretty hard of my dc job. I just had my first kid. He's eight months old now and you I I think that really changed the game for me as far as like evaluating how far I want to go at this and what I want to build. Um this has been a great stepping sound of our unique one as far as expanding IT.

Um i've looked into that, but I also think that now that have enough capital that I want to work with a little bit higher level product in this one searching in the manufactured homes. So i've actually taken all that background that I had in development and now working on how do I clear this land, how do I i've been talking to manufactured homes dealers across the country getting quotes on different things um because they're still demand in the market that I think needs to be met. Um so i'm looking into that.

I've actually started doing a couple like single family home flips in detroit funy enough. Where I just got my first one done is for sale. Anyone buy in turn key, please call me. And i'm working on my second one there.

Now I think one thing I am missing and that every everybody should have always like, is a goal, right? Because you, what am I trying to hit? What am I trying accomplish? And when you set your goals high and then you work on all the sub goals and underneath to accomplish this things, and then you have something that you're really driving towards, I think i've been in such like, I don't know, just like day to day.

There's just so much going on now. But my kid bein sick, my job i'm working like three jobs which made up be whatever I want to hear on the beginning part because you achieving like ue independence, I don't think that is one of the things you just don't work and just money just flows to you. I think it's really that independence what comes down to is being able to make decisions and choices for yourself and use your time as you see fit when you need to but is still as you are being an entrepreneur and working for yourself as you you're gonna work harder. Um but it's going to be for something this for you and for your family that you can grow love.

love, love that perspective. rocky. Um you touch on a little bit, sounds like you do in some flips out out and detroit right now. But I guess what what is the overall what folio look like today?

So as IT today, I so I guess eleven doors cynically over at um the R B part, there's there's the duplex in the same of family home. I did a burr um and on a house that was down for scale down the street from where I grew up just office. I just ran into IT like that.

I think that will work. Yeah let's do IT. That was that was a own mess in itself and then.

No, I wanted to. So so I got that one. So there, what want to? Three, four, six, eleven and fifteen?

Then I have the two houses in the choice. I'm at seventeen now and about starting from about four, three, four years ago, three, four years ago. So yeah, congratulation. Thank you.

Well, rocky, thank you so much for joining us today. We are going to put rockies information into the show notes. Or if you're watching on youtube, you can check IT out in the description.

You can reach out iraqi to learn more about his real seat investing journey, or to ask him for help or advice on your own journey. You have an already make sure you are subscribe to the real state rookie youtube series. We are doing a new series called Ricky resource, where we give you a downloadable checklist temple.

Let S O P anything you need for your business. So make sure you check that out. I'm actually and he's tony. Thank you for joining real estate rookie podcast.