Hi everyone, long-time-reader, first time contributor.
As most of you sound much like me, you may come across an idea that just eats at you. You research it and research it, looking for all the pros and cons and adjusting your projects in order to alleviate the downsides. This current idea has been on my mind for a good 6 months at least.
First I would like to give you some background. The Army requires those in leadership positions to attend certain training. The military post I am living in close proximity to is known as a TRADOC focused post which means they focus on training. The training ranges from Basic Training for new soldiers which lasts around 10 weeks followed by Advanced Individual Training (AIT) which is another 10ish weeks immediately after. This group of trainees are forced to live in Barracks (ghetto dorms). Upon completion of these two training requirements, these soldiers are released to their units (normally at a different installation). Therefore this is not a feasible market for my plan.
The other training that happens here are for Officers and Warrant Officers. These individuals are higher ranking leaders in the Army. These soldiers are forced to leave their homes for 6 months to a year at a time which does not make sense to move their families (if they have families). This creates a phenomenon known as the “Geographical Bachelor”.
Geographical Bachelors and regular Bachelors in the military, holding these ranks are given a monthly allowance known as a Basic Housing Allowance (BAH) in which they are able to choose how to spend it. For those with families this can be difficult to manage as they are required to live where they are being trained and also pay rent for their families in the other location. These Bachelor groups are extremely limited in their options due to this financial predicament. That’s where I come in!
Currently there are maybe 2 options, within reason, for these soldiers to reside. Both are very close to the installation but the living conditions are much like dorms or barracks and are normally communal. Both of these options charge around 400-600 a month per person for rent so the price is tempting. However, these men and women are well beyond the days of living in such sub-standard housing in which they have to share a common area with another renter and possibly find themselves in the middle of a gang related incident in the middle of the city (those familiar with immediate off-post towns/cities know exactly what I am talking about) and they are all round mid 20s-30s to boot.
My plan is to provide a third option. One in which is so creative, so off the wall that it just may work. My plan is to by a plot of land, 1 acre to start out with as a beta test, and build a Tiny House Community.
In my area, which is roughly a 15-minute commute to post, has a near non-existent crime rate, and with amenities such as only being a couple of miles from beautiful lakes, ATV/Biking/Walking trails, and various outdoorsmen activities, has 1 acre lots of land averaging 30,000 per acre. On average, a tiny house will run you around 40k. I would also want a storm shelter for every four tiny houses which are around 3k installed, a large septic system (another 8k). In 5-6 years, charging only $500 a month, I have paid for all four houses and property. I could probably charge more depending on the market but I wanted to illustrate the time to return.
Granted, there are other costs associated with this type of investment; Insurance, Maintenance, Water, Electricity, etc… but depending on the beta area, I will be able to adjust costs depending on the renters’ desire for responsibility…
As prior military who always preferred off-post housing, I wish that someone had made this sort of investment and allowed me to better enjoy my location so now I would like to be able to take this leap and hopefully this idea can catch on.
This is where I would like you all to jump in. I feel that there are plenty of experts in this all aspects of this project. Please be brutally honest and show me the light! Thank you for all of your input.
P.S. There is also a couple of local colleges, tons of contracting jobs, and a factory that needs this type of housing but I chose to market to the group I knew and understood. These other groups need to be a target audience as well.
I have never owned a business, I am debt free other than my house, and I am constantly looking for better ways of investing.