My friend lives out in the country on a 3 acre piece of land. It has the modular house he lives in and it has 2 more water and electric hookups on the property. He wants to move from there. He said if I bought two more trailers and put them on his property we would also rent out his home and split the rent on all 3. He says rent in his area is $6-700 a months. I've been looking, and I can buy nice trailer for about $20k. For around $40-50k I can get $10-13k a year. It pays for itself in 4-5 years. I know I won't make any appreciation on the trailers like house, but I'm only putting up $50k max and the property isn't mine so I won't pay the taxes. If the trailers get messed up, I don't really care. I'll fix them good enough to get by. If I bought 2 houses to rent, I would be shelling out $200k minimum and after taxes and insurance is paid, I would probably clear $17-20k a year. What to do?
mobile homes investment
- Thread starter tistan
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No but, since I know you'll do it anyway, get everything you want from your friend in writing since as soon as he has "renters" living next to him he'll turn into the biggest asshole you've ever seen.
Also, half of 600 per month per trailer is $300 or $600 a month for 2 trailers. $7200 per year unless my math is way of in the AM.
Also, half of 600 per month per trailer is $300 or $600 a month for 2 trailers. $7200 per year unless my math is way of in the AM.
Your reading and comprehension is way off.
K. Be sure to update on whether you go for the houses or split rent with your friend. :beer:
I'm not buying two more houses right now. The market is overpriced. It was just a comparison of ROI. I could have been a little more clear on that.
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Hey
Personally I think that is a great idea! To people unfamiliar with our area- we have a LOT of migrant workers, Hispanics, etc. who pay in cash and come from a background where they take care of their property. In my former career I dealt with a lot of cases involving these folks as victims of crime and in so doing learned of the mobile home - investment. A lot of money can be made- especially when one can oversee and do some of the maintenance work themselves. I don't have that expertise.
If their is a trick to this, I guess it's to screen folks carefully as the most trouble comes from the trash groups-white and black- where meth, crack and mar. gets to their heads..
Good Luck
Personally I think that is a great idea! To people unfamiliar with our area- we have a LOT of migrant workers, Hispanics, etc. who pay in cash and come from a background where they take care of their property. In my former career I dealt with a lot of cases involving these folks as victims of crime and in so doing learned of the mobile home - investment. A lot of money can be made- especially when one can oversee and do some of the maintenance work themselves. I don't have that expertise.
If their is a trick to this, I guess it's to screen folks carefully as the most trouble comes from the trash groups-white and black- where meth, crack and mar. gets to their heads..
Good Luck
Do your numbers include trailer moving/setup? Last one I had moved was a few k. Friend should look into possible changes in property taxes with the additional units as well. Some of our lots barely got affected while others nearly doubled once we started improving them.
that is why I figured $40-50k. I buy for around $40 and they other $10 should take care of the rest. I'm just not really sure how bad of maintenance a mobile home will be. It doesn't get real cold where I live so I don't have to worry too much about the heating and pipes, but it gets real hot so the a/c might be problematic. I don't know what kind of quality hvac they put in mobile homes.
This is true. I have friend that only wants to rent to Mexicans. He says they pay on time, and when something breaks they go ahead and take the initiative to fix it. All he has to do is reimburse them come rent time.
After about 7 years they become a maintance nightmare in most cases. And that is with you living in them.
It can still be a good investment. Just make sure you put money aside EVERY month for a maintanice budget. Don't skip.
It can still be a good investment. Just make sure you put money aside EVERY month for a maintanice budget. Don't skip.
Mobile homes are a thing of the past around here, nobody can get financed.. Even small banks aren't touching them. I was told that one of Obamas new bills/(can't quite remember) wasn't letting it fly. Relocatable housing is why sticks in my head. Lots of modular homes on good country property have been on the market because of lack of financing.
Where do you live? I wouldn't mind buying some acreage with a mobile home, then relocating the mobile home to my friends property.
NW Kansas.
Oh, little too far from me.
Unless you are there to collect rent on a weekly basis, after receiving at least a three week deposit, you are headed for trouble. Also, if the rent is due on Saturday and you don't have it by Monday, you will need to be throwing them out on Tuesday. This is a tough business and is not for people who live elsewhere or have a social workers outlook on life.
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We've been looking at buying some acreage outside of Atlanta to primarily keep all of our work equipment and a lot of them have trailers on the property. Most that I've had a chance to look at are pretty shitty. Once they start to go it really starts to roll downhill fast it seems given the cheap building materials and construction.
$600 a month to rent a trailer?! Real estate must be high down there.
Perfect example of what NOT to do. Get a lawyer to explain the eviction process in your state if it's your first time.
If your weekly rental agreement is written in such a way that you need a lawyer to throw them out if they don't pay; first, you are stupid, second, you, deserve to lose your ass in the investment.
Knowing who you are renting to is the most important thing in that business. Again, I have dealt with the trash rentors, who on leaving tear up the place or just tear it up while living there. That's why I would look to Hispanics (preferably those who aren't quite legal) as they don't want to cause any trouble..We have several parks here that seem to cater to them and the only trouble I seen is from outsiders coming in to TRY to take advantage of them...I have seen a few white punks get the stuffings beat out of them for trying..
Another good choice may be college students as they will be temporary and if close to school a good bet.
As for housing, wasn't there a news story about all the Katrina mobile homes just sitting somwhere??
Another good choice may be college students as they will be temporary and if close to school a good bet.
As for housing, wasn't there a news story about all the Katrina mobile homes just sitting somwhere??
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