First Rental

47 Replies

I know it isn't a popular option on here, but I just bought my first rental.  We shall see how it goes. 

Actually, not even a mobile home.  It's a travel trailer.  Will be renting for $650 a month less $260 lot rent.

Congrats! I have a travel trailer for recreational use. I can tell you they aren't well built so save your pennies for maintenance.

Right.  I'm planning to sock away a large amount for repairs and replacement. 

Well, I've learned some things already.  First - pay a little more and buy one that needs no work.  Second - I am capable of doing a few repairs, although I've done very few repairs of any kind in my whole life!  Third - I'm scared of ladders and will have to overcome that.

On a happy note, I finished all the work and got the trailer completely ready to rent today.  The renter loves it and will be paying, signing papers, and moving in tomorrow night or Friday morning. 

Also, the same lady who referred this renter to me has another relative who wants to rent one.  And I have a trailer I think will be perfect lined up to look at Saturday.  This one should be much easier.  Just look at it, pay for it, have it pulled to the park, and rent it.   According to the seller, it needs no work at all.  We'll see.  They lie sometimes! LOL

Congratulations @Leslie A, on the deal.

I just got into my first MH deal and I am in the process of getting this repaired and getting it sold. Again congratulations and keep us posted on other deals 

@Yusuf Mathai ,

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Raymond

Wow @Leslie A. !! I haven't heard of anyone renting an RV as a residence. Excited to hear how this goes... keep us posted!

I recently tried for a small MHP myself... Realtor was less-than appropriately responsive and caused me to lose that one.  But I can't wait to try again!

@Josh Autery  

Got the rent paid and lease signed on the first one without any issues.

I have only read about one person doing it, though I looked for info for quite a while.  I was originally going to buy mobile homes to rent, but got tired of looking and not finding anything suitable.  It was kind of scary to try something that no one else seems to be doing.

I still have a renter lined up for my next purchase, but am having a hard time finding one in the condition I want for the price I want.  Either something important doesn't work (like A/C ) or they don't have a title, or something.  It's a lot like looking for used cars.  You have to ask a lot of questions before making the drive over.  Still hoping to actually buy one today. 

Also have been told by someone else that she will refer renters to me.  She says lots of people are looking for these to rent.  We have lots of people from out of town working at the chemical plants.  So I'm excited about the possibilities.

@Yusuf Mathai  

  Congratulations on your first mobile home!  Hope the repairs go smoothly and trouble free for you!

@Raymond B.  thanks for that hint. I was wondering about that.

@Leslie A.  thanks for the encouragement. Will start a blog on the site with pictures once I am done with the renovations. Again thanks BP users

Will look forward to it.  I forgot to take pictures of my RV after I was done with the fix up!

@Leslie A.  

Well that is definitely inspiring! Wish you the best, and keep us posted!

@Josh Autery  

I just noticed that you're in Groves, TX.  I bet you have a similar demand for rentals for plant workers in your area.

Further progress if anyone's interested:  My waiting renter bought his own RV, so no longer have a renter waiting, but that makes me feel a little relieved. 

Today, I bought 2 more RVs.  Violating the first lesson I learned, these both need a good bit of work, but I have been looking and looking for one that didn't need any work (and that I could afford!) and was coming up empty-handed. 

I paid for both of these and my brother-in-law (who is an amazing person who can fix nearly anything {cheaply!} and is the hardest and fastest worker I've ever seen) and sister (who is also amazing at fixing things and design) are going to do the repairs in exchange for half ownership.  So, in the end, we'll probably just each take one. 

We have 12 days to get these moved from their current lot which has utilities, so that's the deadline we've set for ourselves to get the work done.  These should also rent easily for $650 less 260 lot rent. 

Just an update on progress.  Got my 2nd RV ready to rent and placed in the park 7/30.  Had rented, received rent and deposit money, and lease signed Saturday, 8/2. 

The 3rd RV is in process of being repaired and cleaned for rental.  It should be ready by the weekend or before.  I have 2 people interested in renting it.  Will see if they follow through with application.   So far, the park itself has been the best source of renters.  Both the manager and the neighbors have been spreading the word. 

I had to reject one applicant because she had 3 kids!  The park wouldn't allow that, plus, it turned out she owed the park $540 from years ago. 

As soon as I have the energy, I will start looking for the next one to buy. 

@Leslie A.   Congrats on getting some RV going as rentals and also for getting a few going so fast.  I can see in TX, that sort of thing might work out good.  Warmer climate helps.  I just bought my 1st MH deal here and getting excited about it as well.  Good luck in your ventures.

Thanks, Mark!

Nice to hear your progress on the RV market @Leslie A.  , sounds like you've found your niche! :) 

Thanks, Rachel.  I bought your book and it and your blog have been really helpful!

Got the third one rented last night.  We got even higher rent for that one, because we charged extra for her having a cat. 

We had a good bit of demand for it, so I was really happy.   Word is spreading about or rentals and we plan to get 1 or 2 more this week, hopefully. 

@Leslie A.  

  Hi Leslie,  Can you post a link to some pictures?  I'm not sure I've got a mental picture of what this deal looks like.

Give a run down on the numbers on his type of deal?  Purchase, fix up, rent, lot rent, where you place these homes, how you find the homes and place to park them?

tnx

Ok - here are some numbers and details:

First RV - Purchased 6/27 - price $3,000, fix-up costs and prep for rental $364.98, paid $300 to my sister and bro-in-law for some help they gave me on rebuilding the bed, fixing the a/c, etc, plus paid $100 to the seller to move it to the lot for me, will need to pay title transfer fees of about $250, making total investment right around $4,000.

I placed this RV in a park that is a traditional mobile home park (a pretty nice one) with a special section for RVs.  It has showers and a washateria, and sits by the river.  I called all the RV parks I could find and the ads, but the day I needed to move the RV in, this one was really the only one who had a space available.  I talked to the manager and told her what I wanted to do.  That made me nervous, but she was quite helpful and receptive.  Lot rent is $260, which includes water and basic cable. 

After I put the RV in the park (I had the seller deliver it to the park), I did the repair work there.  It took 11 days, because as I said above, I don't know how to fix anything!  I told one neighbor I wanted to rent it.  He told his next door neighbor and she came to see me about her son renting it.  He became my first renter. 

I decided to charge rents by the week, but with a 6 month lease.  The reason is that you can get a lot more money that way.  If I wanted to rent it by the month, I'd probably need to charge about $500.   I charge $300 deposit and $150 per week for this one. ($150 x 4.33 wks per mo = $650 mo) plus $20 week for electricity.  The park bills me for actual electric usage and I apply the renter's $20 week to that and refund difference.  Out of that rent money I have to pay $260 lot rent.

I will make another post to tell about the others.  I'm afraid I may lose this draft.  Don't want to type it all over.

Ok, next deal. 

My husband's boss had 3 RVs out behind the office of the trucking company, so I sent him a text and asked him if he wanted to sell any of them.  He said he'd sell one for $2,000.  I went to see it and offered him $1,250 hoping to get to a price of $1,500.  He said no, but he'd take $1,250 for the other one and $1,750 for that one.  I offered him $2,750, but he held firm at $3,000.  Which was actually a great deal, so I paid him $3,000 for two trailers.

Note that all three of the trailers at this point are FEMA trailers. Around here, there is a pretty good supply of them, with the retail for one in good shape being $5 - $6 k. Now, I'm not sure of the liability issues with renting FEMA trailers, so if you want to do that, you should probably look into it. Many, many people live in them around here.

My sister and brother-in-law partnered with me on this deal.  I paid the $3,000 and they agreed to do the repair work and pay for all the repairs.  I did end up doing a lot of repair and cleanup with them, though.  However, their expertise is a thousand times better than mine and they have tools, etc.  We worked our butts off!  I tip my hat off to anyone who can rehab a house.  These tiny trailers are a lot of work, so I can't imagine doing a house.

We bought these 7/20.  We had the first one rented on 8/2 at the same $150 wk as the first one.  The second one was rented on 8/12 for $160 wk (because we charged $10 extra a week for her having a cat - total monthly $693).

Rental #2 - purchase price $1,250, fix-up costs $705.22.  Total investment $1955.22.  Retail value around $5,000.

Rental #3 - purchase price $1,750, fix-up costs $458.72.  Total investment $2208.72.  Retail value around $5,000.

This next deal isn't mine, but my sister and brother-in-law's.  We had another renter just begging us to rent him one, but at that point we didn't have #3 ready yet. 

My sister had contemplated renting her personal RV, so I suggested she rent it to him. She did end up renting hers to him for $180 wk (779 a month). Hers is not a FEMA trailer and it's much nicer and bigger with a slide and a bigger bedroom of sorts for the bunks on one end.

All 4 of these are in that same park.  At this point, we're looking for more to buy, but have been busy getting ready for school to start and going out of town, so haven't got anything lined up yet, though we do have a renter waiting.

This is a picture of a typical FEMA trailer.

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