buy here pay here trailer park

i had a buddy a long time ago use a trailer park to get into real estate investing. he would get 500/mo per trailer after paying 13k for each trailer. Made a killing but had to put up with some crazy stuff.

seems pretty cut and dry.

I found some land for ~$22K its 2 acres and 2 trailers are on it already. The trailers need a little fixing up but I can do that on my own. I can also buy 2 more trailers for ~$5k each and fix them up.

4 trailers $400 a month for trailer $200 a month lot rent. So $600 a unit.

That would bring in $2.4K a month and the land and all trailers be paid for within a year and still net $7K gross, everything after year 1 would be straight profit.

I was just curious how many people own one. What other expenses would I be missing besides the small things?

I've been thinking about doing this with a river front lot, put 2-3 trailers on it for 5-10 years to pay it off then move them.

You are leaving out a lot of risk, as in tenants are lower end. The maintenance thing isn't going to work near as well as you are trying to expect. I'd personally just rent them and maybe have a min repair of say $50-100. So the basic stuff they repair on their own. Otherwise they'll stop paying their bills and you'll be stuck with a dump.

He's leaving out some real life issues I agree. Additionally, no one wants to buy those crappy trailers. Those are for the worst of the worst that get evicted on the reg and just need somewhere to live, that are working roofing 32 hours a week because they can only muster to stay sober for 4 days of work a week. They aren't going to take care of the place and they don't have the money or sense to buy it most likely.

I see trailers for sale on a lot for $15k all the time, if someone had half a brain they'd buy that in a heart beat.

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I can also buy 2 more trailers for ~$5k each and fix them up.

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After the contract ~36-48 months the trailer is theirs and they have to move it

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Good luck getting someone to go under contract for 3-4yrs on renting a $5k trailer for 500/mnth especially requiring them to move it.

being a landlord suuuuucks.

Selling for profit after dealing with all the BShite, one of the best days of my life.

this is why i want to get into self storage. Dont pay? i take your shite and sell it. I dont have to deal with broken water pipes or anything.

good point.

you may be on to something!

If it works, let me know. It sounds great.

All I'm saying is, you get a broken water pipe or broken AC and get mold the tenants are not going to pay for that because they own it. They are going to move, now its on you again. Minor stuff, they are going to duct tape and electrical tape.

Again, I think you are underestimating the cost of fixing up a trailer. Maybe you aren't, it doesn't have to be terrible.

All I'm saying is that there's a big difference between a crappy trailer and a nice trailer and who actually wants to live there.

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also seems like there may be some predatory lending law that prevents you from forcing them to move it but if everything checks out

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I read up on all the laws about being a landlord and such and did not see anything regarding that. With that being said I do thing that that business Motto would be very sketchy.