Mobile Home/Trailer rental investing

Mobile Home/Trailer rental investing

Member since 2019 · 20 posts · 5 votes

Hi, I am brand new to the idea of rental investing so please forgive any ignorance of standards. If I am way off base I apologize. I am from the Mississippi Gulf Coast (Ocean Springs MS.)

I have roughly 12000$ in cash that I can use when ever I am ready and I am thinking of buying a trailer/mobile home outright to use as a rental property. My father is a carpenter/electrician and is also a very good landscaper and will help me with any property I buy. It seems to me that if I buy a trailer for around 6500-7000$ and then spend 500-1000$ improving the property (new paint, landscaping, fix cosmetic issues etc.) to give it more curb appeal and intend to charge 350-400$ a month on rent that it would be difficult for me to lose on the deal as I would have my money back within 2 years. I intend to do background checks on the renters to limit my risk as much as possible. I am about half way through "The Book on Rental Property Investing" and everything in it (so far) seems it is aimed at much more expensive properties but after I post this I am going to continue reading the book. 

He mentions in there to make a plan. 

My plan (without a ton of knowledge yet which I am trying to gather)

1. Is buy a trailer and land outright for 6500-8000$

2. Invest an additional 500-1000$ in improving the property

3. Saving everything I get from renting it out and when I reach enough buy another similar trailer.

4. Repeat the process and buy a 3rd trailer.

5. Hopefully after a while of renting all 3 trailer buy a single-family house to rent out (maybe not totally outright but largely outright)

6. Buy a 2nd home 

7. Buy a 3rd home

8. Sell trailers and only deal with homes going forward. 

I realize this is going to be a long process and I will be saving money from my job as well as the money from renting properties. I want honest opinions on this plan and if I am incorrect somewhere please let me know. I want to be educated on this process. I am honestly not to keen on the idea of financing to much, I would prefer to grow slower with less risk but if you feel differently please let me know. Thanks for any and all advice and I hope to be guided in the right direction by people much more knowledgeable than myself on these matters. 

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Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
7y

You can no doubt get a trailer at that price, I'm not so sure about land. I would think you could get more than $400 rent on it if it is in decent shape. 

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  • Lookout Mountain, GA · Member since 2019 · 1 post · 0 votes
    6y

    @Michael Sechrest

    What companies sell trailer insurance. I live in Northwest Georgia and am struggling to get a decent rate on insuring two trailers.

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