Just back from a trip down in the Eagle Ford play in South Texas.
Boom town is still booming!
I wanted to find a flower shop...searched the internet...came up with one named Curry's Nursery, Florist and RV park.
The interesting part of that is the RV park part. There are RV's everywhere. Every spare inch of land has been converted to an RV park. Spaces are renting for $400 a month.
The place is crawling with workers, big trucks, and dirt.
The city will not issue a new water permit. There is no more water available. Therefore, property that already HAS water is in high demand an selling for a huge premium.
A house that should sell for about $35,000 is being rented for $4,000/month.
RV's and other "shacks" are rented out on a per person basis.
The three or so motels are sold out forever.
One of the mexican restaurants is perpetually busy, and is open from 5am to 11pm...every day.
Small one bedroom apartments are renting for $2500/month...and there is a waiting list...there are no apartments.
...and on and on and on.
I am working a deal to buy land (about 3 acres that has full utilities) where I can build 30 1 and/or 2 bedroom apartments on half of the land. The other half currently generates about $300,000 in revenue from RV spaces, some cabins, trailers, etc. I figure all in, it will take $5 million to buy the land (and current assets) and build the apartments. In Stage 2 - Could clear out the riff raff on the other half of the land and build another set of apartments.
Plus, carve out a space for some kind of retail...I'm thinking an urgent healthcare business...there are no doctors in town...do occupational health services for oil and service companies, etc.
Gross income (assuming $2000 per month per apartment 100% occupied) added to existing income will total about $1 million a year. (Less operating expenses.)
I have terms agreed and should have this under contract by tomorrow and will start putting the deal together.
This is about the best I have ever seen.
Go ahead...call down to Three Rivers and try to find an apartment. I dare ya. :)
My son has a new idea...renting trailer-mounted coolers/misters to put on job sites to cool workers. Units can be bought for about $8000, and rent for $250 a day. Good math. Coke machines have slipped to the back burner.... lol
My oh my...what a place.
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