Tuesday, December 8, 2015

The new House will never be a home.

     The house we bought for taxes is to far gone to ever be a home again . Over the last 4 weeks we have spent 6 days at it cleaning and cutting . We stabilized a wall and have poked and inspected to see how we should attack the repairs. The water problems are more substantial than we thought. This place is still wet and we have had 6 dry days . It gets almost no sun it was built on the wrong side of a large hill that has huge Oaks and Pines that allow zero sun . I will fix its problems but the area has low resale on old homes so the cost benefit is to narrow .

    It isn't a loss, me and my son have decided to make it into a food commissary with him a 4 room apartment attached. A commissary is just a place where food is stored and cooked and cleaning done on a mobile food truck. It is basically a normal kitchen with a floor drain , mop sink and if needed a vent hood with  exhaust. All of which I have and can install. By doing the house into a commissary we can both get license to operate any where in the state in both of our vending trailers. When the new trailer is finished it will also be licensed and registered as based out of the commissary. To make it into a home would cost 5 times as much as a commissary

     A home is about look feel and finish appeal. A commissary is about sanitation ,food handling and utility. The 4 room apartment is basically in good shape now. It will cost little to separate it from the kitchen unit . This plan will only cost about 800 in structure electrical and plumbing cost. Add 400 in flooring and counter cost should about do it. To get it to a rental level would be 3 times this and to a sale level would be over 5 times as much.

    To rent a space in a set up commissary would be 500 a month per vending trailer and to my knowledge the nearest one is 40 miles away. That's 1500 a month  FOREVER.  Buying and remodeling this house will be 2500 to 3500 once and done! Plus the cost of license is 1200 less in Blount county and the units are only 50$ each instead of 200$ each. The apartment for my son is an added bonus :) till one of our other places becomes deedable. This plan is a lower cost and a higher return over the next 5 years for both me and my son than rental or sale could net.

4 comments:

  1. good going. and it is something where you don't have to retire and a sure money maker. people have to eat.

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    1. When an expense can be reduced or eliminated it is the same as making money. It is easy to save than to earn.

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  2. I wish you the best of luck in your real estate endeavor. I can completely empathize with the outrageous cost of living. It sounds like you are making all of the right moves to make sure that your family has a sound financial future. The security in the end will be worth all of the headaches that you are feeling right now.

    Margaret @ Boston North Shore Real Estate

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    1. Its slow go but we are getting there.

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