It’s a Land Play - Posted by Tony Colella
Posted by Tony Colella on July 14, 2007 at 15:09:15:
As my friend Daphne Lowe might quickly point out, this is a land play type deal.
From a land/home perspective you are using the cash cow single wide to rent and pay for the land while the land itself appreciates.
You might hold it for years like this and make a nice cash flow from it. What would it rent for as is and what if you made a doll house out of it?
Seems to me that in most any rental area the rent would pay back the $2,500 for the land/home in little time.
From there you are looking to sell the land in a variety of scenarios. Your market will be stick built buyers, not mobile home folks.
You want to market the lot to folks who want to build in an established neighborhood. Small builders like these kind of lots quite well.
You may even look to sell to a neighbor who would love to get rid of that trashy “trailer” eye sore. You could even owner finance the sale to continue the income stream for years to come and reduce the tax bite. This may be another reason to rent it for a few years first.
Due diligence as usual is necessary and mentioned here. Other than also checking deed restrictions, the others have hit on the hot topics but be sure to do all due diligence as usual.