Thinking about starting a trailer court..shoot holes in this idea
Good morning everybody! Its been a while since I've last posted. A lot has changed, we have purchased and sold several homes, and are in a good financial position to make our next move. Ill try to keep this short... We purchased a piece of property that is 30 some individual lots grouped together. The covenants are non-restrictive (we border the city, but are not in city limits. Development is moving in this direction quickly) We own this outright, no mortgage, and we do not live on it. City water, sewer, gas, and electric are all in place and run through the property. We are currently finishing up our first mobile home on it, a 1980's 2/2. It is turning out really cute, and should rent well. We installed this one because the property is otherwise a big expensive garden that we like hanging out at, and we wanted it to produce a little income. This place should rent for 850-900, and the rent market in our town is crazy hot. (sheridan, wyoming, if anybody is curious)
We will have around $50,000 into this house all said (including taps, ill expand on that in a min) , and thats a complete remodel and done well. That said, its probably more expensive than we can source mobile homes for. I would say in the ball park of 20-25000 for a move in ready home. If we found a 3/2, it should rent for closer to 1000.
I love these numbers, as a dumpy 3/2 that needs torn down is going for 250,000 right now and still rents for what we can rent these for. My wife (I'm the kite, shes the string that keeps me in reality) is on the fence about starting up this trailer court. Not that she thinks its trashy or anything, more that shes afraid we wouldnt attract quality tenants, and we have been very fortunate so far, tenant wise.
My thoughts, and the #'s:
We have 6 or so lots that are level, and readily accessible to utilities that we could develop easily.
Do them 1 at a time, and as the right houses are found.
spend 20-25000 on the house.
Taps per lot are 15,000. We can excavate it and save a couple thousand so 15,000 is a pretty set cost.
another 2,000 to move and level it.
so lets say were in them another $50,000/home ready to roll after putting in a gravel driveway and whatever other things pop up.
What are your thoughts on this? What downsides am I missing? I understand the homes will not appreciate in value, but with lumber prices right now, were concerned with building anything anyway. There is a 10+ unit SFH subdivision currently going in literally right next door, that are selling for $300+, so our property is appreciating in value substantially with or without us building.
Well, so much for keeping this short. But I hope I gave enough detail. Please give me your thoughts! -Jake