Grandmother wants to leave/give me trailer! Help!

Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

If she's renting the lot, shouldn't the owner of the lot be responsible for seer line repairs?

I'd start talking to her and looking for another place for her to live. She can sell the home and not have to worry about upkeep. Would her income cover rent for a new home?

3 Reply

Dennis McNeelyPro Member

Investor · Gibraltar, MI · Member since 2017 · 108 posts · 103 votes

Is it worthwhile opening a discussion with the property owner to see if they're open to selling the property? If so, you may be able to wholesale the property to someone (perhaps even someone in one of those $400,000 houses) in such a way that you and your grandmother come out whole.

You could structure the deal as an installment sale or a lease option so the property owner doesn't see a large capital gain tax payment for the sale.

And good on you for helping out!

Bill B.

Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes

Let her sell it as she won’t have a taxable gain which you will have if she gives it to you and you sell. As you mentioned, it’s not really an asset. Imagine tomorrow the land owner doesn’t really want the trailer there any more because the land is worth more without it. So they double or triple the rent, then what’s e trailer worth? (Assuming it costs $5-10k to move and it’s worth less than that?)

Derek HarvillePro Member

OP

Member since 2020 · 7 posts · 1 vote

Quote from @Theresa Harris:

If she's renting the lot, shouldn't the owner of the lot be responsible for seer line repairs?

I'd start talking to her and looking for another place for her to live. She can sell the home and not have to worry about upkeep. Would her income cover rent for a new home?

I have a house for her to stay in. Next door to family. Income would cover rent for a short time. I'm mostly concerned with how I can sell the trailer if I don't own the lot. Do I have to disclose the sale to the property owner? I don't want the property owner to decide to sell the land and make us deal with trailer disposal or moving.

Derek HarvillePro Member

OP

Member since 2020 · 7 posts · 1 vote

Quote from @Theresa Harris:

If she's renting the lot, shouldn't the owner of the lot be responsible for seer line repairs?

I'd start talking to her and looking for another place for her to live. She can sell the home and not have to worry about upkeep. Would her income cover rent for a new home?

I also forgot to mention that the landlords don't pay for repairs or upkeep on these properties. They have always rented them at well below market rate and the repairs were made by the tenants. This is why the other houses on the same street have been abandoned and dilapidated. Never repaired it kept up with and they don't bother to now the grass. Yet another reason I want to sell the trailer.

Derek HarvillePro Member

OP

Member since 2020 · 7 posts · 1 vote

Quote from @Bill B.:

Let her sell it as she won’t have a taxable gain which you will have if she gives it to you and you sell. As you mentioned, it’s not really an asset. Imagine tomorrow the land owner doesn’t really want the trailer there any more because the land is worth more without it. So they double or triple the rent, then what’s e trailer worth? (Assuming it costs $5-10k to move and it’s worth less than that?)

Exactly, I don't want to get stuck in this scenario. I'm unclear if we can sell the trailer without discussing with the land owner.

Bill B.

Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes

If he doesn’t own the trailer he has nothing to say about selling it or who owns it. But…he can make the buyer regret it if he doesn’t plan to move it. Again, land rent could be anything. I’d honestly look for a trailer reseller or someone with their own land.

Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

Quote from @Derek Harville:

Quote from @Theresa Harris:

If she's renting the lot, shouldn't the owner of the lot be responsible for seer line repairs?

I'd start talking to her and looking for another place for her to live. She can sell the home and not have to worry about upkeep. Would her income cover rent for a new home?

I have a house for her to stay in. Next door to family. Income would cover rent for a short time. I'm mostly concerned with how I can sell the trailer if I don't own the lot. Do I have to disclose the sale to the property owner? I don't want the property owner to decide to sell the land and make us deal with trailer disposal or moving.

Talk to a realtor in the area, they will know the drill. Lots of people who have trailers don't own the property they are on and sell them.

As for the owner of the land expecting tenants to do repairs-there shouldn't be many repairs required to the land, just the trailer that is on it (which your grandmother owns and should be responsible for maintaining). Somewhere in her lease agreement, there should be a list of what comes with the rental lot. Infrastructure (eg water, sewer, electrical supply to the house) should be the landowners' responsibility. Once it comes out of the ground, that's another story.

Account Closed

Rental Property Investor · New Braunfels, TX · Member since 2022 · 409 posts · 408 votes

Quote from @Derek Harville:

Hi all,

My grandfather has passed away and my grandmother is left with handling finances for the first time in years. She's on a fixed monthly income and cannot afford home repairs. I have already spent around $4k in repairs for her. She would like to gift me the trailer to repay me for some of the money I have put out. I'm reluctant to accept as I see the trailer as more of a liability. She's not in great health herself, but seems like she can still carry on a few more years if nothing bad happens. Found out today the sewer line is in need of repair.

This is an OLD single wide trailer. One window AC cools the entire trailer and struggles in the summer. Most larger windows are an odd (old) size and solid pane and do not open. Water heater is new. The electrical is outdated and dangerous, although still functioning. Due to it's age I'm not sure if it can actually be moved. She does not own the lot and pays like $150 per month lot rent. A subdivision of nice $400k homes was built across the street back around 2004. The owners of the lot/property seem to neglect her land and the adjacent homes/land they own on the same street. All that to say, I'm not sure when they will want to cash in and sell the lot due to the appreciation the subdivision has provided. My grandmother is the last tenant in a string of their abandoned properties.

I don't want to be stuck with trying to figure how to dispose or move the trailer. I don't want to rent it out as it seems like an electrical liability - and I'm not sure if renting it to others would be legally possible seems how we don't own the land. I don't want to keep putting money into repairs on something that will never generate a return. Best case scenario in my head is finding a buyer that would move it if possible. (When the time comes). Or someone even taking it for free? If my grandmother were to pass away without deeding the trailer to me, would it be on the land owners to deal with it? My grandparents have lived there since 2001.

Open to any advice others have to offer. Let me know if you need any more details. Thanks BP!

I just got a quote of $7500 to demolish and haul away an old Mobile Home. There is no resale value in it. Don’t let her gift it to you. In Texas you can’t move mobile homes older than 1980. And in order to take them to a scrapyard, you have to have a title. I just learned all this in the last two days as I’m tearing down a mobile home from the 1960’s.

Ashish AcharyaBusiness Member

CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes

[email protected]941-914-7779

@Derek Harville If your grandmother gifts you the trailer, you inherit her original cost basis, meaning if you sell it later, capital gains tax could apply. However, if you inherit it through her estate, you receive a stepped-up basis to its fair market value at that time, reducing tax liability upon sale.

Gifting it now has no immediate tax consequences unless its value exceeds the $18,000 annual gift tax exclusion (2024). If over that amount, she must file a gift tax return, though no tax is owed unless her lifetime exemption is exceeded. You should also verify whether the lease agreement allows for ownership transfer without landowner approval.

Owning the trailer means assuming responsibility for lot rent, potential removal costs, and liability risks. Given its condition, renting it may not be practical. Selling it to someone willing to relocate it, offering it for free to avoid removal expenses, or donating it for a potential tax deduction could be better alternatives.

If she passes without transferring ownership, the landowner might have to handle the trailer’s removal. To avoid unnecessary liabilities, delaying acceptance or exploring a cash alternative may be the safest financial option.

This post does not create a CPA-Client relationship. The information contained in this post is not to be relied upon. Readers should seek professional advice.

INVESTOR FRIENDLY CPA®5240 Reviews

TaxMD® | Tax Planning Software

Nathan GesnerBusiness Member

Moderator

Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

Quote from @Account Closed:

Shop around. My local landfill charges around $2,000 if you can haul it to them. The cost of moving is around $1,000. That's less than half the price you were quoted.

In this case, I think it would be worth moving grandma out and selling the trailer for $3,000. As long as it's livable, you'll find a buyer.

The DIY Landlord Book4.7247 Reviews

Bruce WoodruffPro Member

Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes

As the owner of an old (1968) trailer, they ain't worth a lot. I'd do what you can to keep yourself uninvolved with it....but still help your Grandma of course..

A trip to the City (Planning/Zoning/Building Depts) will give you some valuable info. We, and you, are all just guessing until you have more solid facts.