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How I started a 60% return rental bussiness

I began my research towards the end of 2020 while I was working remotely from home. As someone who enjoys traveling, I once spent a weekend at a charming getaway tiny house, located far away from the bustling city and without any access to wifi. It was a rejuvenating experience. Another weekend, I stayed at a backyard ADU (Accessory Dwelling Unit) in San Antonio. It was a well-built, cozy cabin that was completely separate from the main house. Inside the yard, there was a delightful little swing.


During a conversation with the owner, she mentioned that she had invested $120,000 in the ADU, which provided her with a 30% return through rentals. This got me thinking about the possibility of constructing something in my own backyard to generate passive income. However, after conducting some research, I realized that having a tiny house in my backyard would compromise a portion of my privacy. Additionally, the city's building department did not permit such constructions in my community.


Consequently, I shifted my focus towards researching vacant land. The key aspect was to ensure that the permit process would not be overly time-consuming and that the land had readily available water and electricity connections. Otherwise, there would be hidden costs associated with developing the necessary utilities. My target area was within a 3-hour driving distance from my home, allowing for easier management of the rental property. Ideally, the land would be situated near a lake or any tourist destination, providing an added advantage. After three months of thorough research and exploration, I discovered a 4-acre plot of land in Athens, TX. It had access to city water and electricity, and the best part was that it fell outside the jurisdiction of both the city and the county. This meant that I did not require a permit to construct a house on the land.


Initially, I considered building a container house and gained confidence after reading a comprehensive guide on how to build one. However, due to the impact of COVID-19, the cost of shipping containers had skyrocketed, as had the labor expenses. These inflated costs exceeded my budget by a significant margin. Subsequently, I turned to Alibaba in search of a "tiny house." There were numerous options available, and I engaged in discussions with around 10 suppliers.  


After careful consideration,I chose Magic Box due to their exceptional professionalism in addressing my inquiries, coupled with their extensive expertise in zoning. Moreover, their product possesses a distinctiveness that is essential for a rental house. 


to be continued ...

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