re: Value of rental property

quote:

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The purpose of my post was to find out what people should ask for a property that brings in $2950 a month every month

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As said, I don't think the trailer rental income is where you would get your max value. You would be much better off trying to sell them individually. It's really no different than a single family home. You will get much more selling to someone wanting to live their themselves than an investor, 20% or more potentially. So not just a little, a lot.

Using the 1% rule, $2950 in rent is $295,000. No way in hell I'd pay that for 3 trailers on 2.5 acres. I really don't know trailers and I'd think the only way to truly know is put it up for sale, but I agree with the others somewhere around $75-100k to an investor seems right.

You are likely to get somewhere around $40-60k or more depending on the market for each trailer on .75 acres. A lot of it depends on the shape of the trailer, where the land is, etc.

Fwiw OP, I see trailer foreclosures for sale all the time for $20- 40k on multiple acres. I'd love to pull the trigger, but none of them are close enough to me or with large enough tracts of land 6+ acres or land that is useful to me. I don't want to drive 45 minutes each way for a trailer on 2-3 acres.

Imo there are just too many cheap ones out there for someone to buy top dollar for rentals.

I believe banks hate to have them on their portfolio and usually try to fire sale them pretty quick in foreclosure. Let's be honest, there's a reason trailer financing is much higher than mortgages and that's because people default a lot so there is a good bit of inventory out there at any time .