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Real estate cash flow strategy--punch holes I'm this idea
Posted on 6/27/13 at 12:06 am
Posted on 6/27/13 at 12:06 am
I'm thinking about buying some mobile home lots around 4-6k and move a used single wide (4-6k + 1500 move/setup). Total investment would be 9500-13,500 per unit. They should rent for $550-600/month. I could also owner finance the trailers for 240/month for 60 months and rent the lots for between 100-150/month. That would cut out my repairs expense and if the seller defaulted I'd just kick them out, keep their down payment and do it again. If they did pay it off, I'd still own the land.
10
Posted on 6/27/13 at 12:11 am to Clay1582
Gotta factor in the meth lab cleanup fees.
Posted on 6/27/13 at 12:12 am to Itismemc
quote:
Gotta factor in the meth lab cleanup fees.
Sometimes they blow up, so insurance is a priority in this case.
Posted on 6/27/13 at 12:22 am to Clay1582
quote:
They should rent for $550-600/month
Most people in that situation will buy meth or cigs instead of their rent.
They bounce around paying 1 or 2 months rent and getting kicked out.
Posted on 6/27/13 at 2:18 am to wegotdatwood
Not even going to pretend to be experienced in owning trailer park land. But I feel like the vacancy percentage would be way higher than other rental property due to high turnover. Also, I think trailer parks usually have on site management of some sort, so that would be an extra expense.
Posted on 6/27/13 at 5:23 am to Clay1582
quote:
if the seller defaulted I'd just kick them out
Kicking them out costs time and money too.
Posted on 6/27/13 at 6:07 am to foshizzle
Your "renters" are all white trash.
If you have been watching myrtle beach manor on TV it's not going to be like that...
I don't want that crap btw
If you have been watching myrtle beach manor on TV it's not going to be like that...
I don't want that crap btw
Posted on 6/27/13 at 6:33 am to foshizzle
quote:
Kicking them out costs time and money too.
This, and the added hassle of constantly having to talk to the cops during their frequent visits to you tenant's homes.
frick this idea, buy bitcoins
Posted on 6/27/13 at 6:44 am to eng08
The only good trailer park markets are in South Florida where the old folks from up north come down and retire. However the values are higher than the numbers you posted.
Posted on 6/27/13 at 7:11 am to DaphneTigah
quote:
The only good trailer park markets are in South Florida
Posted on 6/27/13 at 7:16 am to Clay1582
We did a trailer park deals a few years ago and made some $$$$$$$.
the key is buy them in a up and coming area completely reset the property and clean everything off, and then either redevelop or sell. i did it on a somewhat old part of the lake 6 trailer homes and countless other bs. kicked everybody out, cleaned off the lots, split them up into 3 lake side lots, built a seawall and it took a couple years but it worked out good, you wouldn't even know its the same place.
the key is buy them in a up and coming area completely reset the property and clean everything off, and then either redevelop or sell. i did it on a somewhat old part of the lake 6 trailer homes and countless other bs. kicked everybody out, cleaned off the lots, split them up into 3 lake side lots, built a seawall and it took a couple years but it worked out good, you wouldn't even know its the same place.
Posted on 6/27/13 at 7:18 am to Clay1582
quote:
I'm thinking about buying some mobile home lots
I would prefer this and make them bring in their own mobile homes. less headache. get 25 to 50 lots. Just make sure you have a growing list of people who will fill in your spots among other things. Your idea on doing owner finance getting a nice down payment then if they are late per your contract then foreclose/kick them out is used by many RE investors, but again do you want all those trailers to maintain? Or maybe you could just buy a few? more than anything make sure you KNOW YOUR MARKET beforehand.
Mobile home parks can be cash cows if done correctly!
Posted on 6/27/13 at 7:34 am to Clay1582
I like the idea personally. Just start small.
Posted on 6/27/13 at 7:41 am to I Love Bama
A friend of mines dad got into buying trailer parks and they do well. I think they have somewhere around 30-35 mobile homes, but it is a full time job keeping up with those things and the type of people that live in them.
Also they have 1-2 full time maintentance guys so add that into your potential expenses.
Also they have 1-2 full time maintentance guys so add that into your potential expenses.
Posted on 6/27/13 at 7:42 am to Clay1582
I too am naive on trailer parks, but who the hell would live in a trailer park for $550-$600/month? There are plenty apts in decent areas that can be had for that price.
That being said, if your numbers are indeed correct, and you really have to research your market to be sure, then that sounds like really good money. Although your main headache, as already mentioned, are the type of people you'll be dealing with.
That being said, if your numbers are indeed correct, and you really have to research your market to be sure, then that sounds like really good money. Although your main headache, as already mentioned, are the type of people you'll be dealing with.
Posted on 6/27/13 at 7:43 am to Clay1582
You need to factor in legal fees and in that same vein, find a good lawyer.
Things to consider: creation of entity, leases for tenants in your trailers, leases for tenants in their trailers, approximate cost to file eviction actions in the venue your property is situated in, approximate attorney's fees for average eviction case where the tenants don't have much of a defense. Keep in mind that evicting a tenant from your trailer is one thing. Evicting a tenant and their trailer is another. You will have to have a trailer moving outfit setup to move the trailer off the property.
Your lease will undoubtedly contain attorney's fees which you probably not recover. So while it is nice to think the tenant will be paying for the attorney, that's just not reality in most cases.
I guess this was less of a hole punching and more of a PSA.
Things to consider: creation of entity, leases for tenants in your trailers, leases for tenants in their trailers, approximate cost to file eviction actions in the venue your property is situated in, approximate attorney's fees for average eviction case where the tenants don't have much of a defense. Keep in mind that evicting a tenant from your trailer is one thing. Evicting a tenant and their trailer is another. You will have to have a trailer moving outfit setup to move the trailer off the property.
Your lease will undoubtedly contain attorney's fees which you probably not recover. So while it is nice to think the tenant will be paying for the attorney, that's just not reality in most cases.
I guess this was less of a hole punching and more of a PSA.
Posted on 6/27/13 at 7:44 am to rintintin
b/c it's like living in a house, a lot of people don't like living in apts, not enough privacy.
the guy that owns the copper palace in Aspen made all his money off trailer parks, so you can get rich.
the guy that owns the copper palace in Aspen made all his money off trailer parks, so you can get rich.
This post was edited on 6/27/13 at 8:00 am
Posted on 6/27/13 at 7:55 am to trillhog
Its just the lifestyle some are accustomed too. My moms side of the family is redneck as hell. One of them is a nurse practitioner now and the first thing she dI'd was buy a new mobile home.
Nothing shocks me with them anymore.
Nothing shocks me with them anymore.
Posted on 6/27/13 at 8:01 am to I Love Bama
i think if i had to ,i might rather live in a trailer home if it was clean and in a decent part of town rather than one of the huge apt complexes, those things give me anxiety.
Posted on 6/27/13 at 8:03 am to trillhog
I have no doubt you can make good money off of trailer parks, but its just surprising to me that people will pay that much rent to live in one. With those numbers you could easily make decent money renting them for $400/mo.
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