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I love the vision and audacity to tackle this rent problem. That said, help me understand who your GTM target is. 1 - Is it basically SV, young tech guys who
by salimmadjd 10y ago
I love the vision and audacity to tackle this rent problem.
That said, help me understand who your GTM target is.
1 - Is it basically SV, young tech guys who want a cheaper and a unique place to live? This is what I'm taking away reading your post.
2 - Is it migratory/seasonal workers who work on a farms during harvest season?
3 - Is it people who want to live off-grid, and plan on buying a lot and just want to drop a house there for cheap?
Some of my initial thoughts:
A - As someone commented, the images don't really connect to any of the segments above. I can see the photographer is going for a certain magazine look. But it doesn't do a real good job of telling a story about these units and your target market.
B - Again as others have commented on regulatory issues both for fire safety and also city regulations. That last part might cause issues with your original vision of lower rent alternatives.
C - Financial model. It seems to me if you are going the rent-share service route and you'll need to put down $40-50K for each unit, you will need a lot of capital as you scale. I'm guessing it will take 3-5 years to recover the cost of each unit (rent-dependent). Which creates a lot of challenges, unless you setup some kind of a partnership scheme. Either individual partners, who will put the money down to help renters finance this as part of revenue share scheme. Or large banking institution who will help underwrite each units.
D - Pricing. As others have pointed out, the pricing once you get to $50k is close to a decent used RV house. And the interiors don't look that great. I'm curious what the cost will be once you put some type of economics of scales into this. Given all the dimensions are set. Can't you just have a shop in China produce all these parts? Is there an opportunity to partner with Lowes or some large retailer who buys in bulk?
Good luck! I'm very impressed you guys have taken it this far and hope it'll succeed.