Rental property question

[CoachS]

My biggest draw back is I feel like a house is much more investable than a 27 year old trailer. I have another option to by another relatives house for 60,000 that I think I could make the same cash flow on.

[CoachS]

Thank you for the advice everyone.

[3whunt]

It depends on the “trailer”. The best structural house we rent is a 70s model. And we rent around 50 of them. There is no way in hell to replicate cash flows or payoffs when comparing a trailer to a site built house. At least not in the metromess. But take the advice and spend as much as you can afford for a lower ROI. Us “slum lords” will enjoy our 1 year payoff and $1,000 rentals. You just have to know what to look for.

To your point, no way I’d pay $30,000 for a trailer.

[ken800]

30K for a mobile home that is 27 years old single wide seems WAAAAAY off from a value perspective. I realize you have to put in septic/water/electric and pay the move, but it's a 27YO mobile home no hatter how you do the numbers.

[Treeshark]

Or you can put in the utility connections and rent the spot out to someone else to put their MH there. But I believe you will benefit more by owning and managing the MH yourself.

[CoachS]

It depends on the “trailer”. The best structural house we rent is a 70s model. And we rent around 50 of them. There is no way in hell to replicate cash flows or payoffs when comparing a trailer to a site built house. At least not in the metromess. But take the advice and spend as much as you can afford for a lower ROI. Us “slum lords” will enjoy our 1 year payoff and $1,000 rentals. You just have to know what to look for.

To your point, no way I’d pay $30,000 for a trailer.

What do you think is a reasonable price for a trailer and what’s an investible age of a trailer.

[CoachS]

Or you can put in the utility connections and rent the spot out to someone else to put their MH there. But I believe you will benefit more by owning and managing the MH yourself.

I agree. Who knows what this political climate is going to bring to us either.

[3whunt]

I’m not getting g into it on here. PM me a phone number and we can talk if you are serious. I’d be happy to tell you what we value in a rent house. Age isn’t ever a deciding factor.

[PlanoDano]

I would not touch it.
No depreciation in that old trailer unless you lie.
No chance of appreciation.
Is it insurable?
but there are lots of ways to make money in rental real estate that I would not touch.

[jvgaroni]

My biggest draw back is I feel like a house is much more investable than a 27 year old trailer. I have another option to by another relatives house for 60,000 that I think I could make the same cash flow on.

This would be a better investment opportunity if you really want to get into the rental property arena. Most traditional built homes appreciate in value. Trailer houses will not. The land might, improvements will help the land value but the trailer will always drop. I know there is money to be made in trailers, but unless you get them dirt cheap and put as little as possible into them, there ain't enough meat on the bone for the effort. I've been in the rental home business for over 20 years with over 20 properties. That being said, my usual advice to someone looking to start is, if you're only going to have 1 property then you better off to have none. Because you are either at 100% or 0% occupancy. Best of luck in whatever you decide.

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