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Started By
Message
re: Investing 100k
Posted on 6/27/16 at 11:20 pm to CRope28
Posted on 6/27/16 at 11:20 pm to CRope28
quote:
Any tips on locations for land or mobile home findings?
What you try to look for is good school areas that's more in the country.
French Settlement
Albany
Ponchatoula
Springfield
Maurpas
Killian
I bought 2.6 acres in French Settlement and subdivided into 3 lots. This is the location of my double and single wide.
What tenants are looking for is a great place to send their kids to school FOR FREE.
These people can't afford private schools and public schools in and around BR are shite.
At one time French Settlement had the number 1 public elementary school in the state.
To anyone not believing the $1200 for a double wide on a private acre, next time you pass a trailer park, stop in and ask someone what the going rate is. People are paying 8-900 a month to live in a trailer park with 40 trailers on 2 acres.
1
Posted on 6/28/16 at 7:33 am to BigD13
Is a trailer depreciated like a home over 27.5 years or is it an expense?
I can certainly see finding a cheap plot of land and putting a used trailer on it all for under $20k and renting for $800 could be a viable investment.
I can certainly see finding a cheap plot of land and putting a used trailer on it all for under $20k and renting for $800 could be a viable investment.
Posted on 6/28/16 at 7:55 am to baldona
whats crazy is how far rents have gone, when I went to LSU granted it was the year 1999-2000, yes eternity ago, i paid $350/mo for a decent place near campus.It seems like today the baseline for a decent place is $800 or so. A nice 150% increase in just 16 years.Being a landlord is as good as ever.
This post was edited on 6/28/16 at 7:55 am
Posted on 6/28/16 at 8:02 am to tigereye58
quote:
Every type of deal has its risks.
without a doubt, but simply many do not want to deal with a huge possibility of trailer trash and no appreciation of a trailer, maintenance without a lease purchase agreement, etc.
Posted on 6/28/16 at 8:31 am to BigD13
quote:
Paid out 52k for trailers, made $115,200
He could use the $100K to buy 5 houses, and not including any cash flow at all, he could have a $500K asset within 12-15 years(assuming he is putting down 20% and is buying $100K homes). Even if the mobile homes are in good shape when you buy them, they will depreciate at least 50% in that 12-15 year period.
I am not saying that you can't make good money from renting/flipping mobile homes. I flipped a 2008 mobile home about 6 months ago and made a killing but at the end of the day, they are depreciating assets.
Posted on 6/28/16 at 8:33 am to stevengtiger
Wait where can you find 100k homes at? These mythical creatures dont exist in DFW lol...
Posted on 6/28/16 at 8:43 am to 50_Tiger
I have bought 6 properties in Shreveport/Bossier within the last 16 months and only one was over $100K ($105K with another $15K in repairs). That one was our first home and we learned a lot from that one.
I would consider these properties to be B properties and were rented or had a contract to purchase within 7-14 days of being on the market.
ETA: Just got out bid yesterday on a foreclosure. Beginning price was $39K. We offered $44,500 and got beat. Place was a wreck and needed at least $25K in repairs. Would have rented for $900-1K or sold for around $105K. Wish we would have gotten it.
I would consider these properties to be B properties and were rented or had a contract to purchase within 7-14 days of being on the market.
ETA: Just got out bid yesterday on a foreclosure. Beginning price was $39K. We offered $44,500 and got beat. Place was a wreck and needed at least $25K in repairs. Would have rented for $900-1K or sold for around $105K. Wish we would have gotten it.
This post was edited on 6/28/16 at 8:46 am
Posted on 6/28/16 at 9:06 am to stevengtiger
quote:
they are depreciating assets.
This really isn't the case when you do like I said and put multiple trailers on 1 property.
Try purchasing a trailer park with 20 depreciated trailers that's making 800 per.
Example: purchase 2 acres for 40k, subdivide into 4 half acre lots. Then purchase 4, 20k mobile homes.
80k for trailers
40k for land
10k for water and sewer to all 4
130k total "depreciating" investment
$3200 per month
$38,400 per year
$153,600 4 year total payback
Now if you want to talk 15 year total
$576,000
Now after 15 years if you decide you want to sell, if you can show a $3200 a month income you wont have any problem getting more than you paid.
Posted on 6/28/16 at 9:24 am to BigD13
quote:
This really isn't the case when you do like I said and put multiple trailers on 1 property.
Understood but in your example you used cash flow as your "15 year total" and did not include any repair/maintenance money which is obviously a decent expense with a $20K mobile home. In my example, I used the asset itself as my total and not including any cash flow. I know that mobile homes can cash flow well but a $20,000 mobile home will never appreciate.
If you have a mobile home park with multiple units, of course the park would be worth more than the original investment once you include renters. Also, just briefly looking, the nicest mobile homes 3 bedroom/2 baths in the parks in my area are renting for $725/month and these homes look new and nice. A $20,000 used trailer wouldn't look like these.
This post was edited on 6/28/16 at 9:25 am
Posted on 6/28/16 at 9:55 am to BigD13
BigD,
First off $20k trailers that are in decent shape are not easy to find. Most likely a trailer that is going to rent for $800/ month is going to be closer to $50k.
You are also failing to include your expenses such as maintenance, vacancy, etc.
If you are truly getting those numbers, that's great. A large mobile home park by me was just flattened after it was sold to turn into commercial real estate probably like a strip mall. It was 5-6 acres and I'm guessing went for $500k or so.
First off $20k trailers that are in decent shape are not easy to find. Most likely a trailer that is going to rent for $800/ month is going to be closer to $50k.
You are also failing to include your expenses such as maintenance, vacancy, etc.
If you are truly getting those numbers, that's great. A large mobile home park by me was just flattened after it was sold to turn into commercial real estate probably like a strip mall. It was 5-6 acres and I'm guessing went for $500k or so.
Posted on 6/28/16 at 9:59 am to stevengtiger
quote:
did not include any repair/maintenance money which is obviously a decent expense with a $20K mobile home.
When I purchase I put 5k into each one on lifetime medal roofs so yea that's 20k there. Add another 20k for 4 new AC units over a 15 years. We can add another 20 for misc BS, so 60k total over 15 years
Paid 130k
Maintenance 60k
$576,000 gross
$516,000 after maintenance
I prefer the mobile home route for 2 reasons, first being I hate paying interest and I hate notes.
2nd I hate the cost of insurance. It doesn't cost much to put 25k insurance on a mobile home.
It's all good money, I can see where houses would be great long term investments also. I should have my 5th mobile home rental this year and after that's set up I may start looking into houses. For now I'm just working on that cash flow with no notes.
Posted on 6/28/16 at 10:14 am to baldona
[quote]First off $20k trailers that are in decent shape are not easy to find. Most likely a trailer that is going to rent for $800/ month is going to be closer to $50k. [/quote
LINK
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People aren't paying me 800 and 1200 bc the mobile homes are brand new, they're paying bc their kids have a acre of land and privacy compared to a $700 trailer in a mobile home park.
LINK
LINK
LINK
People aren't paying me 800 and 1200 bc the mobile homes are brand new, they're paying bc their kids have a acre of land and privacy compared to a $700 trailer in a mobile home park.
Posted on 6/28/16 at 10:15 am to BigD13
quote:
I prefer the mobile home route for 2 reasons, first being I hate paying interest and I hate notes. 2nd I hate the cost of insurance. It doesn't cost much to put 25k insurance on a mobile home.
Understood on both of these. I am paying almost $600 a year to cover each of my properties and paying interest is not fun.
quote:
It's all good money, I can see where houses would be great long term investments also. I should have my 5th mobile home rental this year and after that's set up I may start looking into houses.
Agreed!
If I had a chance to buy up a 15-20 unit mobile home park, I would probably jump on it in a second.
Posted on 6/28/16 at 10:55 am to stevengtiger
quote:
If I had a chance to buy up a 15-20 unit mobile home park, I would probably jump on it in a second.
sure for the pads, depends on the numbers. I've no interest in maintaining trailers. i'd have to lease option them so tenants can do maintenance. also those problems getting their trailers pulled out if you have to evict and they own their own. neither scenario is all rosey.
Posted on 6/28/16 at 11:41 am to Fat Bastard
quote:
sure for the pads, depends on the numbers. I've no interest in maintaining trailers. i'd have to lease option them so tenants can do maintenance. also those problems getting their trailers pulled out if you have to evict and they own their own. neither scenario is all rosey.
Agreed with all this. I know a guy who has a park with 25-30 of them. He has guy who owns his own trailer and he lets him park and use utilities for free and pays him like $1K month to manage everything. He cuts grass, takes care of rent collections and general maintenance. Anything serious, he calls the owner and the owner does VERY well. I think once the homes get too old, he pulls them and puts in another. I know he has had his share of issues but the money is worth the hassle for him.
I will keep my focus on SF homes but would definitely consider a park or an apartment complex if it was pretty "hands off".
Posted on 6/28/16 at 1:09 pm to stevengtiger
quote:
I will keep my focus on SF homes but would definitely consider a park or an apartment complex if it was pretty "hands off".
i think i saw an ad in qwik quarter about a 12 lot park for sale between new iberia and lafayette. have to see if it is just pads or trailers included.
Posted on 6/28/16 at 1:21 pm to Fat Bastard
quote:
new iberia and lafayette
Too far away for me unless I had a partner down there. We have really been focusing on a 30 mile or so radius from Shreveport/BC. We recently looked at a 30 unit complex in Minden but some of the inspections came back pretty poorly.
Posted on 6/28/16 at 3:46 pm to stevengtiger
I'm getting $950 a month for a 2000 model single wide. It was in great shape when I bought it. It's in a great school zone. I have room for 1 more home.
Mobile homes are depreciated over a 15 year period and it's only the home that is depreciated. The land is not. Other items are considered 1 time expenses.
Mobile homes are depreciated over a 15 year period and it's only the home that is depreciated. The land is not. Other items are considered 1 time expenses.
Posted on 6/28/16 at 3:53 pm to tigereye58
quote:
I'm getting $950 a month for a 2000 model single wide. It was in great shape when I bought it. It's in a great school zone. I have room for 1 more home.
That's really strong. Again, I don't think there is anything wrong with them as an investment, I just believe that if I had $100K and wanted to get into a long term REI, I would buy 4-5 houses in the $100K range while rates are still low. Up front cash flow may not be as good as a mobile home but long term, I like the idea of houses more. Like someone said earlier, its all money.
Posted on 6/28/16 at 7:16 pm to stevengtiger
How about if you are 10 years from retirement and don't have the time or energy to deal with mobile homes etc. Where would you put $100,000 at?
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