Renting out mobile homes

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  #1  
Old 08-22-18, 09:22 AM
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Renting out mobile homes

My wife and I are looking into buying a nice older mobile home, putting it on our property, and renting it out. We already have two wells and can connect to one of them for water. Then we would have to get a new culvert put in and a septic tank. Does anyone have any other information as to what we would need? Or advice as to whether this is a good idea or not? Thanks
 
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  #2  
Old 08-22-18, 09:38 AM
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Whether it's a good idea is a whole can of worms but I will tell you that rental income is active income, not passive, so don't think you just sit back and collect money.
 
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Old 08-22-18, 09:46 AM
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First I would check your local zoning and ordinances. In some places only one domicile is permitted per property parcel.

From my experience renters are very hard on places. I don't have any trailers but I've helped friends work on theirs and they are not the most durable.
 
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Old 08-22-18, 09:53 AM
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The plus side of renting out a MH is it costs less to get started. Having the rental close by also helps you keep an eye on it although the downside is the renters also have easy access to you if they wish to bug you about every little thing. As PD stated your first step is to see if you are allowed to add a 2nd residence to your property.
 
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Old 08-22-18, 10:04 AM
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Adding that 2nd Septic Tank is just one component of a Waste Water Disposal System . . . . depending upon your jurisdiction, you may want to check on the requirements for an additional Leach Field and its required isolation distances from Property Lines, existing Wells (including your Neighbor's), and other Leach Fields.

What State are you in ?
 
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Old 08-22-18, 10:39 AM
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What State are you in ?
Washington County, Florida
 
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Old 08-22-18, 10:44 AM
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rental income is active income, not passive, so don't think you just sit back and collect money.
Yes, I realize, I will be fixing dripping faucets, stopped up sinks, breakers going bad, broken windows. leaks, air conditioner problems, wasp nests, late payments etc etc.
Just wondered, if it was worth it all.
 
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Old 08-22-18, 11:48 AM
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Talking to others it seems having one or two rentals works out about half the time. When you only have a couple rentals you tend to take a lot of things personally. "This tenant damaged my house...". The odds get better when you have enough properties to treat it as a business. Damages and repairs are just another expense to be accounted for and managed.
 
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Old 08-22-18, 01:18 PM
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Just wondered, if it was worth it all.
Only you can answer that and it will take a while before you know. Being a landlord is not for everyone. How much money do you think this will actually create for you?
 
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Old 08-22-18, 01:28 PM
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Only you can answer that and it will take a while before you know. Being a landlord is not for everyone. How much money do you think this will actually create for you?
I figure it would take 2 to 3 years just to pay off the investment. After that, maybe $650/month after taxes, insurance and maintenance. But I would eventually like to have at least 3 of these.
 
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Old 08-22-18, 01:37 PM
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Originally Posted by ibuiltthat
". . . I would eventually like to have at least 3 of these . . ."
Florida may require that you become a Licensed Mobile Home Park in order to do that on one parcel.
.
 
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Old 08-22-18, 04:05 PM
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Wow! Land of the free, home of the brave, regulated to death
 
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Old 08-22-18, 05:28 PM
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Strictly regulated and most regulations designed to protect the tenant, not the landlord.
 
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Old 08-23-18, 03:20 AM
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Florida is fairly strict when it comes to rental property. All working windows must have screens in good repair although your personal house doesn't have to have screens. That is just one of the fla rental regs I remember.
 
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Old 08-23-18, 04:28 AM
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Definitions play a role here . . . . such as at what number does a grouping of Mobile Homes constitute a Mobile Home Park requiring State Regulation ?

Here in Vermont, that number is only three (3); while other States may trigger their Park regulations at a higher (or maybe lower) number; but the normal Landlord and Tenant Statutes for single rental units still apply.

I think Florida defines a Mobile Home Park as Ten (10) or more Units but that may have changed; and which division of the government is responsible for supervising these regulations varies by jurisdiction.

You always want to do your research . . . . look before you leap !
 
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Old 08-23-18, 05:50 AM
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I think your estimate to clear $650 after insurance, taxes and maintenance is wildly optimistic. That seems very high for a trailer. I think you would be very, very lucky to get that just for rent. It might be different if you had a great location near an urban center or on the coast but for a inland, rural county that's a decent rent for a small home.
 
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Old 08-23-18, 11:58 AM
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It does. But if it was half that, say, $325/month you would be looking at about 4 to 6 years before paying off the investment. That wouldn't be worth considering for me.
Here is a mobile home for rent near us.
. https://www.zillow.com/homes/for_ren...44_rect/10_zm/
 
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Old 08-23-18, 12:24 PM
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That one appears to be located in a Mobile Home Park; any idea why it has been vacant for 384 days ?
 
  #19  
Old 08-24-18, 10:44 AM
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Ok, I went by the building department and got a few figures from them...
$25 for one application
$20 for the land use application
$70 for one permit
$350 for the driveway permit
$250 to get power connected
and they require licensed contractors for everything...

About $1000 to move and setup the mobile home
$600 for a power pole
$600 to connect the water
$5000 for the septic
About $2500 to put the culvert in
If I buy an older trailer for, say, $8000(plus about $560 in sales tax), I;m looking at about $18,725
Then I would need to put up a fence to separate the yard from my pasrtures and I'm looking at more expense.
If I charged $700/month for the rent, paid the extra insurance etc.that is probably going to knock $100/month off that So it will take 31 months of rent payments before I start making any money from my investment which will by then be depreciated by another 3 years. On top of that my property taxes will go up too and we haven't even gotten into the maintenance. I just don't know if it's worth it.
 
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Old 08-24-18, 02:05 PM
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Check with your local zoning and building inspections dept. Make sure they know you are wanting to install a old single wide mobile home and have the manufacture date. Even my rural county has pretty strict restrictions against old trailers. Old ones are grandfathered in where they are but they have to be brought up to current codes if they are moved. Part of that includes a masonry skirt which requires a footer and the tongue be removed. All of it adds up to a considerable expense that makes it unfeasible in almost all cases.
 
  #21  
Old 08-24-18, 02:35 PM
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Yeah, it just gets worse and worse. I don't think this would be a profitable venture.
 
  #22  
Old 08-24-18, 07:17 PM
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I worked for a guy with 63 residential units and 13,500 square feet of commercial space. The residential was most duplexes and four unit townhomes (the more units on the lot, the more profit possible, generally speaking). He had been in it for 15 years when I quit working for him and was still a couple years away from putting any money in his pocket. Depended on the unit, but the mortgage payment was 1/2 - 2/3 of the amount of rent collected on each unit each month.

Not the greatest town ever for rentals but he had a lot and this was a retirement plan, not something which was for short-term profit.
 
  #23  
Old 08-25-18, 06:13 AM
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Money can be made with rental properties. If you lived in the trailer (meaning it's already there and hooked-up) and just built a new house on the property for yourself I would say "yes" rent out your old trailer. To go buy an old trailer, move it and create all the infrastructure to support it is a very different story especially since it's your first rental. I'm not saying "don't do it". I just want to make sure you research it thoroughly before doing the work and spending the money.

Generally though I would recommend not getting into rentals by the method you described. The only things going for your plan is that you have space on your property and you can share the well.

Another thing to consider is how it affects the value of your property. In many areas a trailer negatively affects property value. Not every buyer shopping for a home will see a trailer rental on the property as a positive. And since the trailer is on your parcel and using your well you can't sell your rental separately.

If you want to get into rental property consider getting an older home or a trailer already on another lot. Then you'll have a free standing asset. If it turns out you don't like being a landlord or if you need money you can sell it. You don't have that flexibility if it's on your home's property.

Another thing to consider if you do want to go through with buying and moving a trailer onto your property is to parcel off the land for the trailer. You would have to drill a well for the trailer but it would give you a asset that could be sold on it's own if needed.
 
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