We are the solution and it is going to be a great business. So, on the top side of this, as we — I’ve been in this business over 50 years, I started with the original communities building them at $10,000 a unit. And those communities today may be worth substantially — the amount of money we’ve made over the years, which is really because we’ve had inflation and land values have gone up is tremendous. So when people call in, I want to know, if whether it’s 7% or 9% preferred is too expensive. I sort of smile about that, because the communities we’re building today and units were $150,000 a unit, had land and homes as compared to well $350,000 for the apartment unit. We’re building the better product, at a lower cost, on which this company is going to make a lot of money over the years.
If you want to know the basic projections, it’s not a projection it’s a plan. I want to be careful on this. We’re not talking people the communities we’ve built today in 12 years are going to double in value. But that’s happened in the past. So we’re not — when we issued the preferred, we would love to issue at a lower cost. But we wanted to have — I think Sam wants to do 800 rental homes a year. And three years we do 2,400 rental homes, put into sites that we already now own and are already paid for. So if I’m going to do 2,400 homes. And it’s going to cost $100 million we want to do it, because we’re going to make a lot of money on it, whether or not issues are preferred at 2021 or 2022 versus the 2025. And of course the preferred stock is a better investment, because everything is a capital stack and our banks appreciate that the preferred stock is behind them.
And as far as the common stock, it’d be wonderful. We can issue as we did most of the capital we’ve issued is at $20, a share. We can’t issue stock at a price higher than the market, so whatever the market is. So what I’m saying is that, we are going to continue growing the company. We are a leader in the company. And we see great opportunities in Florida, with 800,000 people moving in a year. We see a need for workforce housing. We see a need for the immigration. So we’re going to allocate capital and do 1,000 units close to $150 million. So I’m not so sure, if you expect the company to say well, we’re going to shutdown because interest rates are at a little bit of a high or we’re going to shutdown because the market doesn’t appreciate the future value of the stock we’re not going to do that.
And we have great government programs now. We can get money. What rate, Anna?
Anna Chew: It’s about 6.3% right now on 10-year fixed rate mortgages.
Eugene Landy: For the government-sponsored entities so we’re raising money. So what I’m saying and suggesting is you have to blend all our sources of capital and we need equity to get the debt and it’s highly profitable. It’s one of the best businesses to be in but you have to take a long-term view of it. And we certainly want to continue meeting this housing crisis and continue to be a leader in the industry. So we’re going to build at least 400 expansion units. We’re going to try to put in 800 more new rentals a year. And right now we may be able to make some really attractive acquisitions. One of the fundamental things we look at is replacement cost. And if some other company wants the south 10,000 units below replacement costs we’re going to take a good look at that too.
And we — and if we need to raise capital we’ll do that. The manufactured housing industry is a wonderful industry because it is capital-intensive and we’re going to continue to be a serious participant there.
James Gordon: Thank you.
Operator: [Operator Instructions] I’m showing no further questions. This concludes our question-and-answer session. I would like to turn the conference back over to Samuel Landy for any closing remarks.
Samuel Landy: Thank you, operator. I would like to thank the participants on this call for their continued support and interest in our company. As always Gene, Anna, Brett and I are available for any follow-up questions. We look forward to reporting back to you in February with our fourth quarter and year end 2023 results. Thank you.
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