Buying an abandoned single wide?

8 Replies

Hey BiggerPockets! To financially stabilIze myself, I'm living with my grandmother for the next year or so (until my 21st birthday) which is great for both because she needs help with the house work for health reasons, and I need to save money for something I think has potential, but want some advice on. Down the road from my grandmother, there's a decent looking trailer on a decent lot of land, roughly 1.25+- acres in a very good area, about 4 miles from town, 2 miles from 2 different schools, 6 miles from the state Parkway. I estimate the size to be 14x52, and it's been abandoned for the better part of 2 1/2 years. It would need new siding and skirting, and some updated interior, but I've been inside it and it looks fairly decent! Great living room, 2 decent size bedrooms and a nice big bathroom. The lot is grown up quite a bit, it would require a bush hog but I luckily have connections down here in Kentucky. The question is, would you think it would be worth it to save money up for a trailer that shouldn't cost no more than $6500 to rent out to someone, or am I better off putting it elsewhere? Any help is appreciated! Thanks BP!
@John Beck Around here, for a 2 bedroom 1ba with decent land is roughly $525-$575, I would be on the lower end since it is smaller. Considering it's abandoned I don't think it would cost too much really. I haven't sold a vehicle yet but would be willing to sell a vehicle and have at the least $2500 to put a down payment on it.

How much is the roughly 1.25+- acres worth? You may be able to buy the land, and make a profit. 

$2500 + approx $4000 personal loan. If you can rent it for $575/month, and depending on your loan, loan costs and term of loan (and cost to make it inhabitable). If you can keep the rehab costs down, it could work.

In Single Family home rentals, many of us try to do a quick estimation. You want to be able to rent for at least 1% (or more) monthly of the total purchase price. If the home meets that qualification, then I usually run the true numbers through the rental property calculator to get a closer idea of the real cost and benefits.

Using this method if I was interested in a house that cost $52K, it'd have to be rentable at $520/month. If it meets that requirement, then off I go to the Rental property calculator.

This is all theory, so please factor in your own actual costs. This information is very general and may lead to failure.

@John Beck In terms of what the land is worth, I'm not sure. I'm very young to the game of renting and life itself really, I know that the grass is grown up a lot and I'm unsure if that will cut down on the true cost of it, but I assume roughly $3000-4500 for the 1.25. The trailer itself wouldn't need a ton of work. My rough estimation is $3,000 in renovation, that includes the side skirting and siding and carpet and new laminate in the kitchen. I'm thinking if I could get it bought and fixed for under $10,000, $525 is very profitable.

@Logan Caudill If it's been abandoned for a few years, I'd check to see if you can test out the systems in the home (i.e. electrical, plumbing, etc). Not sure how old the home is but you definitely want to check out the roof, electrical, water heater, heating and air conditioning and plumbing at the very least. Good luck!