Would like to purchase MH for cash and rent. There seems to be alot of them in my area. Anyone doing this in the bedroom comunities around Raleigh/Durham?
Newby, I have never worked with trailers personally.
I am thinking that you need to find out if the property is all one property and the trailers are separate. In other words are the taxes paid on the trailer separate from the taxes paid on the land? If so the owner should have titles on individual trailers. I assume you could sell them like cars.
Is the land divided up into lots? Are the taxes assets on the whole property, or each lot having its own assessment?
I think the trailers have titles on them and require ad valorem taxes paid on them.
You need to look at the market and see if there is still a demand for this type of living. If so that is good for this deal. You could start with the two lots and rent the lots out to someone that already owns their trailer.
I am surprised that all of the tenants have a 1-year lease in effect. Unless he had them all resign at the same time for the sale of the property. You might do a long walk around and interview some of the renters.
Newby,
Another thought, if you finance through the owner or through the bank you need to have it in the contract that you are just using the trailer rental lots as collateral, and not the trailers. This way you will be able to sell the trailers separately. If not you will not be able to separate the trailers from the loan. In other words you can not sell the trailers unless it was somehow in your loan contract that each trailer would represent a value and when sold money would have to be paid to reduce the principle of the loan without penalty, fines or fees.
Newby, I have never worked with trailers personally.
I am thinking that you need to find out if the property is all one property and the trailers are separate. In other words are the taxes paid on the trailer separate from the taxes paid on the land? If so the owner should have titles on individual trailers. I assume you could sell them like cars.
Is the land divided up into lots? Are the taxes assets on the whole property, or each lot having its own assessment?
I think the trailers have titles on them and require ad valorem taxes paid on them.
You need to look at the market and see if there is still a demand for this type of living. If so that is good for this deal. You could start with the two lots and rent the lots out to someone that already owns their trailer.
I am surprised that all of the tenants have a 1-year lease in effect. Unless he had them all resign at the same time for the sale of the property. You might do a long walk around and interview some of the renters.
Newby,
Another thought, if you finance through the owner or through the bank you need to have it in the contract that you are just using the trailer rental lots as collateral, and not the trailers. This way you will be able to sell the trailers separately. If not you will not be able to separate the trailers from the loan. In other words you can not sell the trailers unless it was somehow in your loan contract that each trailer would represent a value and when sold money would have to be paid to reduce the principle of the loan without penalty, fines or fees.