Mobile Homes

[Jabri Carter]

are they good investments? Would they be easy to rent out? Would turning it into a rental prop. Be a good idea. Any suggestion? Anyone know the average price of them?

[Ed Emmons]

I would say I specialize in trailers and it is my first choice for these reasons. First and foremost, I own the trailer park where they sit. If you have to pay lot rent and you are trying to sub-rent, they become risky. I had one situation where one of my companies owned the trailer and another owned the park. After 2 1/2 years the park made quite a bit more money. At the time lot rent was $250 and rent was $575. The owner of the trailer broke even because of vacancy, repairs, etc.

If you own the park they are a gold mine. I have rented and sold units in my park. They won't lose value if you buy right. Much will depend on codes where you live as to what is allowed. About 10 yrs ago I took in about 40 trailers from an out of state park that was closing. All the units were about 25-30 years old. All of them cost me $3000 or less each delivered. I brought them up to 2006 hud code which involved egress Windows, hard wired smokes, gfci receptacles and a coule other things. I also put R-6.5 insulation on exterior, vinyl sided them and replaced all windows.  These are in Mane. I have about $6000 each into them . I still own all of them and have rented them for $500 - $600 per month. Do the math and it is hard to beat the return.

I never buy for pride of ownership as real estate is my only income. I want Cashflow. I was dong a lot of owner financing but with Dodd Frank I need to reevaluate. That was great because I usually tripled my initial investment and still got lent rent in addition. Many times people walked away, lost their down payment and I resold unit. 

For rental a trailer is nothing but a box on wheels. If they are supported correctly and the outside is done right , (good roof, vinyl sided, thermal windows in cold areas) the inside can be reasonably nice for not a lot of money.