mobile homes investment
- Thread starter tistan
- Start date
Things seem peachy now but what happens when you and your buddy have a falling out? You have 100k of trailers sitting on his place and are contractually bound with lease agreements to the renters. You would then be scrambling to find a place to move the trailers to, the costs of that, etc.
You always have to think about the what ifs. I know things seem great now but stuff happens. This has to work smoothly for five years for your plan to come to fruition.
You always have to think about the what ifs. I know things seem great now but stuff happens. This has to work smoothly for five years for your plan to come to fruition.
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Reading the comments here convince me that there are, I am sure, well meaning people who have never dealt with dead beat renters in the real world. These are not good people in trouble, they are two bit crooks who are taking and abusing your hard earned property. You rent to them on the same basis as Motel Six, no money, no house-trailer.
:lol: Whatever you say buddy. Be sure to post a thread up when you throw someone out who knows their rights as renters.
You have just described why the rental business for a small investor should be avoided.
:lol:
You mad because the vast majority of state laws don't allow for your throw them on their ass on Tuesday fantasy?
In the real world, eviction is a PITA involving the courts or Sherriff's Office depending on the state, and is the last thing you want to do.
It has nothing to do with being a good/bad investor unless you don't know the laws of your state. Then you'd be a bad investor.
You are wrong, this does not affect me. It does, however, have a big affect of the many small property renters who can no longer find reasonable rentals due to owners leaving the market.
I would suggest finding very cheap fixer uppers! My wife and I just bought a single wide for $4000. We have about another $1000 on top of that to fix it up a little more. The park where it is located fetches $125/mn lot rent. The couple we bought it from rented single wides on each side of the one we bought for around $600/mn. That looks like $475/mn revenues before Uncle Sam gets his hands on it.
Also, I have a buddy who buys cheap ones and rents them out as well. He pretty much employes the same philosophy as mentioned before where he kicks them out if they don't pay. To my knowledge, he has about 6 rentals and has never had legal issues with evicting people in this manner. I know it's not legal but I would venture to say that this type of person would generally not know the laws to the extent of fighting eviction. He has even had tenants just leave with all their stuff still there so he gives it away and/or sells it off!
Also, I have a buddy who buys cheap ones and rents them out as well. He pretty much employes the same philosophy as mentioned before where he kicks them out if they don't pay. To my knowledge, he has about 6 rentals and has never had legal issues with evicting people in this manner. I know it's not legal but I would venture to say that this type of person would generally not know the laws to the extent of fighting eviction. He has even had tenants just leave with all their stuff still there so he gives it away and/or sells it off!
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That is why you sign contracts and not just have friendly agreements.
Having a contract is better than not for sure but still if things go south and he doesn't want you there anymore he will find a way out of it. Maybe using your buddies place is your only option but I personally would not want to do something like that. Too much risk IMHO.
Think of the three D's - drugs, death, divorce. Any of these can royally screw up a business partnership. He could want to sell the land, if married he could get divorced or if not married he could get married to the crazy and she doesnt want this stuff going on.
Use an investment calculator, from what I see its not worth it and that's not factoring in the other things people mentioned. 10-12k profit a year after about 5 years of being down 50k. Im assuming he is giving you 1/2 of his rent for his house too right? cause other wise thats only 600/month, and that DEFINITELY is a no go.
So, after 5 years you will be making 10k a year. As others said, then factor in maintenance as they get older. Plus think of all the other possible go-wrongs (friend sells, gets sick of footing all the taxes, a falling out, non payers, eviction, etc) and the max 7500 profit a year isnt really looking all that great. I think you could find some better ways to invest 50k. Good luck
So, after 5 years you will be making 10k a year. As others said, then factor in maintenance as they get older. Plus think of all the other possible go-wrongs (friend sells, gets sick of footing all the taxes, a falling out, non payers, eviction, etc) and the max 7500 profit a year isnt really looking all that great. I think you could find some better ways to invest 50k. Good luck
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