Howdy guys and gals, I'm down here in the Gainesville and Ocala areas. Anyone down here feel like filling me in on trailers as investment properties (rentals)? Not looking to buy an entire trailer park. Just curious is it even worth the money to pick up seemingly affordable trailers on 1/4 acres or to fix up for rental properties.
Seems like the most common type of blue collar housing here.
I know a little already regarding metal roofing, newer being easier to finance, etc.
Does anyone else buy these?
Hi Sean, I’m a realtor in Gainesville and I work in the Branson area as well. I do have some investors that stick to mobile Homes and do very well. Around here you can get into a mobile home for a lot less than what a single-family home would cost. If you get a good enough deal to flip it there are plenty of people looking for move-in ready mobile homes or you can keep it as a buy-and-hold and do extremely well. Mobile homes do generally rent out for a little less than a single-family home but because of the land that normally comes with a mobile it can sometimes even itself out.
If you need any help finding places let me know, I would be glad to help!
@Sean Ridlon there will always be a market for mobile homes, especially in the south. I think they are cash cows and you can sell using owner financing without regard to Dodd Frank, since a mobile home is not real estate.
Everything makes sense for the right price. Buying 15cap rental trailers for cash is pretty solid if you're getting the land as well, but be advised that if you ever want to sell the home, your buyer pool is very limited because financing for used trailers is basically non-existent. The plus side is that trailers are VERY easy and affordable to repair, so if you can amass a number of them, you'l have a sizeable cash flow.
Our current business plan is focused on trailers with the land. It works, but you have to realize its a slightly different business than the standard block home. A few points, the return has to be better than a block home, especially with the older units; this is because when Irma or her siblings come through you have more risk.
From my understanding, these DO fall under Dodd-Frank, make sure you do some research to be comfortable if you are going to seller finance.
Personally, I do not like age restricted because you have half a year of vacancy. I get calls from these areas every Spring with people begging me to take their homes.
If you decide you are going to get into these, especially within parks I'd suggest reading Deals On Wheels and maybe taking @John Fedro 's course. I haven't taken it yet but have heard some good feedback from friends that have. His podcast also has some great info!
@Jenn Barona thanks for the tips, look forward to talking with you sometime!
@Anthony Dooley seems like it'd be easy to liquidate anything that became too problematic by just dropping it on Craigslist with "owner financing available" on there. Good tip!
@Dave Carella hope to avoid crackheads!
@Ben Roddey a local was telling me that 2000 or newer trailers are ok for financing assuming they 1) have a good roof 2) double wide only 3) have never been moved after being set up the first time. Does that jive with your experiences?
@Adrian Smude I'm hoping to find ones that are insurable as well as fanciable, although I'd initially buy and repair using cash. I've dealt with insurance companies for a decade and a half daily as a part of my career in restoration work but... no trailer experience involving claims in all those years. I'm definitely in the dark about how the Irma scenario might play out where trailers are involved, so I appreciate the heads up on that and the tip about the course and reading material.
They have great for me for old MHs. I self insure and only buy liability for some properties.
Hey, anyone have a line on financing local banks or investment lenders who'd carry the note on a trailer with a good down that isn't a wreck?
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