Vacation Rental Question From New Investor

Short-Term & Vacation Rental Discussions
5yFollow

Vacation Rental Question From New Investor

Jason Gordner
Member since 2021 · 4 posts · 0 votes

Had an idea about purchasing a manufactured home (trailer) and placing it in a beach community and using it as a vacation rental property. Could realistically be rented 25-30 weeks out of the year. Comps in the area go for $250-275/night, for older but similar homes, during peak season. I estimate NOI to be between 15-20k but am just not sure if I am thinking of all basis as I am new to real estate investing.

Does anyone have experience in this sector and does this makes sense? 

Thanks

0Reply
13 views

8 Replies

Jump to latestLatest
  • Joshua Strickland
    Investor · Flowery Branch, GA · Member since 2019 · 413 posts · 412 votes
    5y

    One of the things I strongly agree with Dave Ramsey on is that trailers depreciate! I personally wouldn’t recommend it. Most people when going to the beach want either a house or condo. Plenty of condos priced cheap enough that would be more appealing to vacationers. Also not sure how a mobile home would hold up during hurricane season and if it does I would hate to see the insurance on it.

    0Reply
  • Jason Gordner
    OP
    Member since 2021 · 4 posts · 0 votes
    5y

    Thanks Josh

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    5y

    Not only that, but many jurisdictions are not zoned for anything but slab built.....check first.

    0Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    5y

    Run the numbers, see what the competition is doing.

    I have seen these do well in Myrtle Beach areas.

    0Reply
  • Dorothy Pinney
    Property Manager · San Diego · Member since 2021 · 17 posts · 10 votes
    5y

    In our area, many of the local municipalities have restrictions on vacation rentals. Several cities do not allow manufactured homes to be used for short term rentals. Be sure to check with your city/state on their ordinances before you do anything.  Also, keep in mind, the vacation rental industry is ever changing and so are the laws associated with operating one.  Make sure the numbers work whether it is a vacation rental or a long term rental. 

    0Reply
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    5y

    If you are close to a beach, is there salt in the air that can speed up corrosion? 

    [email protected]Podcast Guest on Show #261
    BiggerPockets
    0Reply
  • Brenden MitchumBusiness Member
    Rental Property Investor · Atlanta, GA · Member since 2019 · 1k+ posts · 872 votes
    5y

    Hey @Jason Gordner, welcome to the BP community!

    Wow, so many things to take into account. First off, what kind of beach community are we talking here? Are we talking East Coast/Gulf where hurricanes will be a major concern? Or, are we talking Pacific NW, where in many areas (especially CA) mobile homes actually appreciate big time?

    Judging by your rental comps this is somewhere in the boonies, likely in the Gulf. Might not be a bad idea if the returns are solid. But, keep in mind, you'll have a lot of resistance from many communities. Most beach communities have no desire for more mobile homes to be brought into them and are actively working to get rid of what is already there. First step would be to call the community and see how they feel about it. Do they even have any land zoned MH?? 

    Hope this helps a bit. Please, feel free to reach out anytime if you have other questions or just want to chat!

    [email protected]404-737-0018
    0Reply
  • Jason Gordner
    OP
    Member since 2021 · 4 posts · 0 votes
    5y

    @Brendan Mitchum The communities I have reached out to are in the greater Rehoboth Beach, DE area and are strictly for mobile homes. 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free