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Investing in a trailer to rent out - Landlord Forum thread 358025








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Excuses!

Investing in a trailer to rent out by Britney on June 30, 2018 @15:48

                              
Hi I may be purchasing a trailer in North Florida but onl;y the trailer not the land. The land rent is $450. a month and the trailer is $9000.
The tenant who were just evicted by the seller were supposed to be paying $600 per month rent.

Does this sound like a good investment or bad?
[ Reply ] [ Return to forum ]

Re: Investing in a trailer to rent out by Nichole on June 30, 2018 @15:55 [ Reply ]
Run for the hills

Best case scenario, you gross $150 a month. (woo!)

A very probable one month vacancy would put you out $450. That by itself would take three months to recoup. If you're going to rent to trailer folks, you need a large enough cut to make it worthwhile. You would need to own the land.

$150 a month for all that a trailer brings? Nope.
Re: Investing in a trailer to rent out by Nichole on June 30, 2018 @16:08 [ Reply ]
Don't forget taxes and insurance every year also.

No way.
Re: Investing in a trailer to rent out by Nichole on June 30, 2018 @16:12 [ Reply ]
Then god forbid you have the a/c go out or need to hire a plumber.

There's 2-3 months worth of profit gone.

If your expenses are $450 per month, It wouldn't be a good investment unless you can charge $900 per month.
Re: Investing in a trailer to rent out by Frank on July 1, 2018 @10:47 [ Reply ]
The above advice is faulty depending on the location and surrounding housing cost around this trailer park.
You should check with a local Realtor about the rents and the quality of renters.
Is it in commuting distance of any cities like Tampa?

I mean if I bought this trailer on my credit card for 9k and paid the lot of $450. there's be a decent positive cash flow and have my card paid back fairly soon.

Also see how much improvement work is needed on the trailer itself.
There's not much to a trailer, but most of the money will be in
Kitchen/appliances
Bathroom
Windows

After you do your homework, you may find a decent deal, but you will probably have to put a little more money & work into it.
One other thing: You will have to screen tenants very carefully!!! You don't want the same kind of tenants who just got evicted!
Re: Investing in a trailer to rent out by Nichole on July 1, 2018 @13:07 [ Reply ]
My advice isn't faulty. It's indicitive of how I would approach the situation. I'm in business to make money, not lose it. If you are ok with losing money (worst case scenario) or making a very small amount of money (best case scenario), then by all means full steam ahead. It isn't a deal I'd enter into.
Re: Investing in a trailer to rent out by Garry on July 1, 2018 @14:13 [ Reply ]
Usually they are bad investments, unless you buy it way under market value of similar trailers, AND you are a seasoned LL/investor who knows how to get good tenants, that won't tear up your place, or cause problems in the mobile home park. Yes, your numbers may make sense (profit or loss), but there are always 2 things you can't ever control-----your tenants behavior, and the land underneath your trailer.

If you get in the wrong tenants, you may have to evict them, just as the last owner did. Do you know the eviction laws of your state, and can you evict someone if need be? (at minimal costs, or will you have to hire a lawyer to do it). Are you prepared for possible damages, and the extra costs involved in getting it back to a rentable condition again?

If you get in the wrong tenants, and they are causing problems in the MH park, what if the owner of the land tells you (the owner of the MH) the tenants have got to go, even if they are in a middle of a lease with you, and are paying you rent on time? If you fail to evict your tenants in a timely manor, the owner of the land could give YOU a 60-90 day notice for YOU to REMOVE your trailer from their park. NOW what are you going to do? How much will it cost you to move your MH out of a MH park if the owner doesn't want you (and your bad tenants) there anymore? (and remember, you have to have a place to move it TO, first).

So, unless you are well-seasoned landlord, with multiple years of experience and tenants behind you, I would suggest you don't invest in mobile homes for rental purposes.
Re: Investing in a trailer to rent out by AnonymousFL on July 1, 2018 @15:00 [ Reply ]
Let it go. It is highly unlikely that the condition of the mobile home is such that additional maintenance will not be needed during the year. Your $150.00 profit per month will quickly be eaten away if one or two issues come up. Even if the home is in immaculate condition (which it will not be), the margin is too slim by at least $100.00.

We have been renting mobile homes in Wisconsin for some time and have seen it happen too often; so much so that we are starting to sell off the older homes.

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