Stick built plus 2 trailers on 2 lots under contract.

2 Replies

A stick built 2br 1.5 bath. Plus 2 trailers on 2 lots. Under contract for 60k rented for 1800 total right now.. how risky is it to buy junk trailers and A House that needs sOme work? Should I worry about resale or is the cash flow just to good to worry about resale? I think you could sell the house if you were to remove the trailers for 50k.

Hi Patrick your profile doesn't say where you are from?  Here in GA small towns / rural areas locals will do something stupid like this, often to house relatives all jammed together on one legal lot.  Some times those mobile homes have been setup illegally.  Counties fought back against owners doing this buy setting large sized lots some counties >1acre some even >2acre.   

Yes you could buy such a mess, fix the homes and rent with little trouble assuming folks get along.  AND as long as individual power and water meters.  99.9% chance this is all illegal and only one power meter and one water meter which makes it difficult to rent to 3 different tenants.  How do you split up the utilities?  All works ok when all family.

I avoid such messes!

the fix is to remove the mobile homes and fix the house.  It'll cost between $5k and $10k to remove each mobile home.  Google mobile home domolision.  Most areas have folks who do this.

@Curt Smith in Craig Colorado. They all have there own meters gas and electric. It’s 2 8000 ft lots, one has the stickbuilt and a trailer the other just has a trailer, looks like there was maybe 2 trailers on that lot. Trailers are rough 1972s but they are rented and tenets seam pretty good considering paying 600 each. The house is lived in by a semi hoarder who has lived there for 5 Plus years and shows no sighn of leaving paying 750. Under contract for 60k. Worried about tenet turnover but with the one solid tenet it kinda takes the risk away.