Just Bought

[Brandon Clark]

I just bought a 4 bedroom farmhouse with 22 acres that back to a river with over 1 mile of river frontage. The home rents for 600 month and the property actually has 19 small cottages/trailers along the river that people use as their seasonal homes. The rent that was being collected for each home was 600yr. The occupants own the improvements but they don't own the land of course. It's not really a trailer park but similar to one I guess. This was an attractive investment because of the multiple streams on one site.

A few questions. Do I need to raise rent for something like this?

Any ideas how I could bring in more revenue from this?

[Jon Holdman]

So, you're gross scheduled rent is $18,600 a year. What are you actually collecting?

How much did you pay? If you paid $50K, its a good deal. If you paid $200K its a terrible deal.

Are there other similar properties available for people to rent? What are they charging? Is there a waiting list of people wanting to rent?

What's the zoning situation? What about water and sewer? Twenty two acres is a lot of space. Your cabins have, on average about 275 feet of river frontage. Could you double or triple the number of sites?

What kind of leases do people have?