Wow, yell your head off why don't you. Sheesh! I come on here looking to read a nice, laid back post and get that.
j/k
j/k
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Why are lot rent fees so high?
- Thread starter redhat
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Man I found the ultimate bachelor pad a few years ago..
It was at a lake about 50 minutes north east of me. It was a trailer park on the channel of a lake, but it was a corner lot so 2 of the 4 sides had water front. Electric, water, (I assume sewer), mowing, and snow removal included in the $200 lot fee. Came with a decent little pontoon too, a shed and a 2 car car port. $10,000. Judging by the photos it was in an older person community with the well kept yards, nice boats and gardens.
It was at a lake about 50 minutes north east of me. It was a trailer park on the channel of a lake, but it was a corner lot so 2 of the 4 sides had water front. Electric, water, (I assume sewer), mowing, and snow removal included in the $200 lot fee. Came with a decent little pontoon too, a shed and a 2 car car port. $10,000. Judging by the photos it was in an older person community with the well kept yards, nice boats and gardens.
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Everyone's situation is different so that's why there are choices that one can make that will benefit them the most. With real estate prices going up 10% a month around here, my choices were limited. Sure I could have bought a 300k house but at my age it's not the most sensible idea and if I paid cash, I would be house rich and money poor. Not a good situation either.
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Originally Posted By: DdDd
Please tell me which planet allows renters to pay only what their actual costs are to the landlord. Or do you think you are entitled to place your home on somebody's land for free?
I'm not looking to live somewhere at cost to a landlord. I get it. I am figuring (perhaps a bit low) taxes for a 2-3 acre land and $150k in the same town. Which comes out to be around 4k a year. My point is that if that is paid by each tenant... in this case 200 trailers. That is $800,000 a year of income from that alone. I would be inclined to think that would cover operating expenses and insurance regulations. Perhaps not.
Still think its high and that money is made way before the price gets to that.
One of these communities is raking in $1.5 million a year from lot fees. I don't see value in what they do. Friend used to live in this community. They didn't do a thing whatsoever.
Please tell me which planet allows renters to pay only what their actual costs are to the landlord. Or do you think you are entitled to place your home on somebody's land for free?
I'm not looking to live somewhere at cost to a landlord. I get it. I am figuring (perhaps a bit low) taxes for a 2-3 acre land and $150k in the same town. Which comes out to be around 4k a year. My point is that if that is paid by each tenant... in this case 200 trailers. That is $800,000 a year of income from that alone. I would be inclined to think that would cover operating expenses and insurance regulations. Perhaps not.
Still think its high and that money is made way before the price gets to that.
One of these communities is raking in $1.5 million a year from lot fees. I don't see value in what they do. Friend used to live in this community. They didn't do a thing whatsoever.
Redhat has a point. The community I am in has 114 lots at $650 a month on average. Sounds like decent income but I don't know the outlays they have. I've recently moved in so I'm not up to speed. Maybe I should have asked but I was not sure how much the manager can disclose. The community has a clubhouse with activities and a pool though in our area the pool is used about 3-4 months of the year. That does sound extravagant.
Upkeep seems good. The park was clean compared to others we visited. Actually we saw rents up as high as $850 a month in other parks.
I wanted to be close to shopping and services including medical. This made our decision easy.
Upkeep seems good. The park was clean compared to others we visited. Actually we saw rents up as high as $850 a month in other parks.
I wanted to be close to shopping and services including medical. This made our decision easy.
i think the op needs to research the finance or appraisal term cap rate.
his calculation is an expectation is that cap rate should be 0% which makes about as much sense as a 0% loan.
if this were true, the op doesn't believe in interest or the time value of money which is an underlying principle of finance and economics. if interest should be 0%, one should just take out a loan for a billion dollars and just die before you had to pay it back
his calculation is an expectation is that cap rate should be 0% which makes about as much sense as a 0% loan.
if this were true, the op doesn't believe in interest or the time value of money which is an underlying principle of finance and economics. if interest should be 0%, one should just take out a loan for a billion dollars and just die before you had to pay it back
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Mobile homes are preying on the poor IMHO. Poorly constructed and if you cannot afford land you have preyed upon by greedy land lords.
Originally Posted By: IndyIan
Originally Posted By: Astro14
Originally Posted By: IndyIan
Can't you cherry pick a house on a nice street in a so-so neighborhood for $50-60k? Get one near a college and you could rent it yourself after you're done with it if you can't sell at a profit.
Seriously?
In what fantasy scenario can you buy a livable house for that price? You can't get the lot, much less the house, for that kind of money...
Spend a little time on Zillow...
I did, near D'youville college there's a few at 60 that would compare to a trailer home quite well IMO. I did some courses there and there are blocks that are very nice and some that aren't so good, but my car never got broken into so it can't be that bad. Good parks and some on the water nearby, seemed pretty good for a young couple IMHO.
If they are willing to investigate a trailer park, then I think a neighborhood like this is a pretty good option if they pick the right house.
Here's Grandma's house for 60k https://www.zillow.com/homes/for_sale/Bu...753_rect/14_zm/
Well, that is for sale for $60K, and while small, and with some serious issues, I would have to say that it's liveable.
So, I stand corrected.
When I looked on Zillow, everything I saw was an order of magnitude more...
To the OP - mobile homes are a trap. Stay far, far away.
I'm not convinced this $60K house is a good investment - looks like the appreciation is pretty flat, but it's far better than a mobile home.
Originally Posted By: Astro14
Originally Posted By: IndyIan
Can't you cherry pick a house on a nice street in a so-so neighborhood for $50-60k? Get one near a college and you could rent it yourself after you're done with it if you can't sell at a profit.
Seriously?
In what fantasy scenario can you buy a livable house for that price? You can't get the lot, much less the house, for that kind of money...
Spend a little time on Zillow...
I did, near D'youville college there's a few at 60 that would compare to a trailer home quite well IMO. I did some courses there and there are blocks that are very nice and some that aren't so good, but my car never got broken into so it can't be that bad. Good parks and some on the water nearby, seemed pretty good for a young couple IMHO.
If they are willing to investigate a trailer park, then I think a neighborhood like this is a pretty good option if they pick the right house.
Here's Grandma's house for 60k https://www.zillow.com/homes/for_sale/Bu...753_rect/14_zm/
Well, that is for sale for $60K, and while small, and with some serious issues, I would have to say that it's liveable.
So, I stand corrected.
When I looked on Zillow, everything I saw was an order of magnitude more...
To the OP - mobile homes are a trap. Stay far, far away.
I'm not convinced this $60K house is a good investment - looks like the appreciation is pretty flat, but it's far better than a mobile home.
Originally Posted By: IndyIan
Can't you cherry pick a house on a nice street in a so-so neighborhood for $50-60k? Get one near a college and you could rent it yourself after you're done with it if you can't sell at a profit.
Maybe in Detroit or Flint, MI.... but not in a normal city.
Can't you cherry pick a house on a nice street in a so-so neighborhood for $50-60k? Get one near a college and you could rent it yourself after you're done with it if you can't sell at a profit.
Maybe in Detroit or Flint, MI.... but not in a normal city.
Originally Posted By: Mr Nice
Originally Posted By: IndyIan
Can't you cherry pick a house on a nice street in a so-so neighborhood for $50-60k? Get one near a college and you could rent it yourself after you're done with it if you can't sell at a profit.
Maybe in Detroit or Flint, MI.... but not in a normal city.
I think Buffalo is pretty similar to Detroit, housing wise. It has a housing oversupply and sections of a few neighborhoods are returning to open fields. Some even within walking distance of the urban core, so if Buffalo ever turns around there could be opportunities there. There's actually some new suburban style houses built in these areas, without bars on the windows so it seems crime isn't too crazy either.
Originally Posted By: IndyIan
Can't you cherry pick a house on a nice street in a so-so neighborhood for $50-60k? Get one near a college and you could rent it yourself after you're done with it if you can't sell at a profit.
Maybe in Detroit or Flint, MI.... but not in a normal city.
I think Buffalo is pretty similar to Detroit, housing wise. It has a housing oversupply and sections of a few neighborhoods are returning to open fields. Some even within walking distance of the urban core, so if Buffalo ever turns around there could be opportunities there. There's actually some new suburban style houses built in these areas, without bars on the windows so it seems crime isn't too crazy either.
Well, there are inexpensive houses available in areas the more affluent would find scary.
They'd also find the houses quite dated and small.
Some of these urban and rural areas will gentrify in which case a savvy buyer with a good grasp of the map as well as local housing trends will make a killing in ten years or so.
Even absent this, the buyer will probably be ahead on housing costs relative to renting anything.
They'd also find the houses quite dated and small.
Some of these urban and rural areas will gentrify in which case a savvy buyer with a good grasp of the map as well as local housing trends will make a killing in ten years or so.
Even absent this, the buyer will probably be ahead on housing costs relative to renting anything.
Why? Because the lot could have been used to build something else as an opportunity cost, and they are not doing that, so they have to be compensated by charing you instead.
Right here trailer park close down all the time and occupants relocated to affordable housing and their prefab bought out, and they are still selling for $200k for the building, plus $1-2k a month on lot fee.
Right here trailer park close down all the time and occupants relocated to affordable housing and their prefab bought out, and they are still selling for $200k for the building, plus $1-2k a month on lot fee.
There used to be tons of sub $100k housing near Buffalo, NY.
I owned a few duplexes, purchased for under $50k each.
It is tough to get into anything livable for $100k now.
On top of that you pay some high property taxes.
Buffalo is a hot market for some reason, I can't figure it out myself, but I dumped all my properties up there a few years back.
The only way I can see making a trailer make sense is if you pay cash for the mobile home, and just pay the lot rent.
I have family down in florida that paid cash for a new trailer, and they pay $400/month lot rent.
But for that 400 they get a clubhouse with pool, and other 55+ amenities, so its nice for them.
All in all, a trailer is a loser on investment, but it is a roof over your head.
I owned a few duplexes, purchased for under $50k each.
It is tough to get into anything livable for $100k now.
On top of that you pay some high property taxes.
Buffalo is a hot market for some reason, I can't figure it out myself, but I dumped all my properties up there a few years back.
The only way I can see making a trailer make sense is if you pay cash for the mobile home, and just pay the lot rent.
I have family down in florida that paid cash for a new trailer, and they pay $400/month lot rent.
But for that 400 they get a clubhouse with pool, and other 55+ amenities, so its nice for them.
All in all, a trailer is a loser on investment, but it is a roof over your head.
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