Posted by Ali on July 05, 2011 at 09:55:57:
Also, is there anything I should be wary about? Can this be a liability for me?
I have a trailer. What do I do now? - Posted by Ali
Posted by Ali on July 05, 2011 at 09:53:11:
Hi,
Someone is giving me a trailer for free if I get it off their land. How can I use this as an investment?
I live far away out of state. Should I have it shipped to a nearby park? Do I pay to rent the land and in turn a tenant pays me for the home?
Please advise me on how to turn this into an investment. Thanks a lot in advance.
It depends - Posted by Dr. B. (OH)
Posted by Dr. B. (OH) on July 05, 2011 at 21:27:24:
Ali, describe the trailer, how far it is from you, and the demand for used trailers in that area.
Steve
Re: I have a trailer. What do I do now? - Posted by Bill Jacobsen
Posted by Bill Jacobsen on July 05, 2011 at 19:52:13:
The first assumption is that the trailer is habitable. If it is not, you will have to spend some money making it that way.
I would locate a park that will accept rentals and has empty pads that it wishes to fill. An alternative would be to sell to the park. If not selling to park, negotiate for no pad rent until the trailer is rented or sold. If you rent out, negotiate to have park manager manage your home for a fee.
You should be able to rent for $200 per month above pad rent. I would estimate your cost of moving to be in the $2,000 to $3,000 range. Your ongoing expenses would be 30% to 50%. If selling, try to make payments to be at or slightly above rental rates. Payments should on go 3 to 5 years. I uses 9.9% interest with principle about twice my costs.
As you can see, I am talking about a low end trailer. If you have something else then you will structure it different. Also, in some areas pad rents are too high to make it profitable.
Good Luck.
Bill