Potential Purchase (Land + 2 Trailers)

[Kelli Standekar]

Hey BP Community,

I am considering offering on a property in my hometown (Colorado) that currently has 2 trailers on it (owned by others) and I am seeking advise on what to do, or If I should make an offer at all. My wife and I currently own a duplex and are house hacking our current residence and are looking to add another property to our portfolio. Here is some information about the property:

Asking Price: 145K

Each trailer pays $230/month in lease for the land. (month to month lease)

Lot Size: 12,632 sqft.

Current Owner: Corporation/Trust

Trailers are excluded from the sale (owned by others)

Two water/sewer taps are included in sale (valued $13,600 each)

Here is what I am thinking:

Option 1:

Let current tenants stay and increase lot rent for both trailers.

Option 2:

Ask both tenants to leave, buy new trailers and rent them out. 

Option3:

Ask both tenants to leave, built (2) tiny homes on the lot - rent out homes. We have tiny homes currently in our town that are less than 700 sqft renting for $1,500/month. Will need to see how much they cost to built - Anyone ever built one of those?

I would greatly appreciate any advise or feedback since this deal is a little different than your standard duplex. Thanks BP Community in advance for your input!

Marvin