Home buying thread

Jysin · May 11, 2023

*edit

wrong thread

OU Ariakas · May 11, 2023

Daidraco said:
You could just use the equity on the house you're currently in for your next loan if your credit is in good standing. That also means you'll be between a 4.55 to 5.26% loan instead of the 7 something thats advertised (depending on term). Assuming you continue to make the same income - when that house is then paid off, you can use it again in full to purchase something else.

Suggestion:

Believe it or not, but seeking out a trailer park in a range you're comfortable with from your house - purchasing it and then having someone manage it for you is the best turn over Ive seen. I know this "sounds" trashy and more trouble than its worth, but its not and trailers are extremely easy to modify and work with. Since you're basically just supplying the "park", its plumbing, road, hook ups, etc. - A lot of it will never need more than a passing telephone call to the power company or similar.

(Using rent values from one of the trailer parks we own)
Look for something 35 plots at 250 minimum per, 8750/m, your full loan with insurance, taxes and all the BS that goes along with it will put you something around ~7500 on a million dollars. Putting aside that 1250 for repairs etc. So at worst, you're pocketing ~2500 a month in equity, at 4.55% and roughly 700 liquid, if you break down what you'll pocket from the savings account on an average year. (This is at the most current going rate as of this morning at 4.55% for excellent credit at 30 year.) Nevermind the "hope" that eventually interest rates will go back down and you can refinance and change nothing - pocketing even more.

This goes a step further in that, the purchase will also have trailers on the property that are included with the purchase. Even the most rough looking trailer can be restored, and done so cheaply. Which means you can then have the person that manages the trailer park for you, rent it out to someone else for ~600+ instead of 250.

Taking advantage of people - Or just business, your call-

People will get a Title 1 loan on their mobile home and put it on your lot. Lease has to be at minimum, 3 years. I can go through all the details if you want, but long story short, you'll end up with a chunk of money from a lease break for one reason or another. Another side of this is that its so expensive to move and install or the opposite, that at times.. you'll end up seizing the trailer altogether. Now you have another rental trailer instead of a rental plot. Our oldest trailer park, out of 44 plots, we only received 3 in that purchase in 2011. We own 19 of them now. Some of which are 20-30k dollar trailers (as insane as that is.)

How many do you own and can we talk? We are looking for differentiated types of real estate investing and this sounds like something that we would be interested in.

Daidraco · May 11, 2023

OU Ariakas said:
How many do you own and can we talk? We are looking for differentiated types of real estate investing and this sounds like something that we would be interested in.

(Im not a real estate agent or a financial planner.)
As a family, we own four. Im not sure what questions I could help you with, as everything is dependent upon the area you buy one in. The ideal purchase is an existing trailer park, even if its a shitty one, because its more likely than not been established before laws and regulation changes that would prohibit (either outright, or actively discourage) the creation of new ones. Electric, Water, VDOT, Tax Assessment, and even the USPS will all try to screw you into paying for services that they are required to do themselves. All four of them have their own manager that watches over the park in trade for their own trailer and rent. They are typically your Jim Lahey's that are retired and social security pays them ~1240+ a month. At least thats the ones we've had the best luck with.

Kiroy · May 11, 2023

In norcal they building full on 1000 home developments and choosing not to sell a single one, all rentals. They call it build to rent. They claim it's somehow less risk but entire neighborhoods are going to be trashed in a half decade. Even good renters don't care like owners do. I really look forward to driving through these things in a few years.

Sanrith Descartes · May 11, 2023

Kiroy said:
In norcal they building full on 1000 home developments and choosing not to sell a single one, all rentals. They call it build to rent.

Gravel · May 11, 2023

Kiroy said:
In norcal they building full on 1000 home developments and choosing not to sell a single one, all rentals. They call it build to rent. They claim it's somehow less risk but entire neighborhoods are going to be trashed in a half decade. Even good renters don't care like owners do. I really look forward to driving through these things in a few years.

Meanwhile the house across the street from us had renters for the last year or so, and they decided they wanted to rent it out as a short term rental (we're close to the beach).

We have a very small HoA ($150? a year), and all the neighbors around me put the kibosh on it. I hate HoA's in practice, but in this case, it's the entire reason for having one. Just enough teeth to prevent your neighborhood from going to shit, but not enough power to make everyone's life hell.

moonarchia · May 12, 2023

Welp, signing my life away in 4 hours. This is fine. Everything is fine.

Gravel said:
Meanwhile the house across the street from us had renters for the last year or so, and they decided they wanted to rent it out as a short term rental (we're close to the beach).

We have a very small HoA ($150? a year), and all the neighbors around me put the kibosh on it. I hate HoA's in practice, but in this case, it's the entire reason for having one. Just enough teeth to prevent your neighborhood from going to shit, but not enough power to make everyone's life hell.

The libertarian in me always bristles at HOAs. Especially in cases like this. They should be allowed to rent their home out if they want to. And if they do anything that shits the neighborhood up you should be allowed to put a lien on their house for that.

Jysin · May 12, 2023

Problem with these beach rentals that is anything other than FL or near a large city, is they mint in the summer, but then sit mostly empty in the winter. Get enough of these rental properties (hi AirBNB landlords) and it decimates the local area out of season. Those properties sit empty and the local businesses suffer with ghost town like populations. Big swing highs in the summer and awful places to live out of season.

moonarchia · May 12, 2023

As someone who grew up in a tourist trap on I-70 in CO I understand the seasonal stuff, but if they are paying their taxes (and you are making sure they pay the non-residential rate) the rest sorts itself out.

Sanrith Descartes · May 12, 2023

Having the contract sent to me for a new construction house in Central Florida. About 30% complete. 2k+ sq feet on 1/3rd of an acre.

Fogel · May 12, 2023

Sanrith Descartes said:
Having the contract sent to me for a new construction house in Central Florida. About 30% complete. 2k+ sq feet on 1/3rd of an acre.

Nice, what part of central Florida?

Sanrith Descartes · May 12, 2023

Fogel said:
Nice, what part of central Florida?

North of Tampa

Gravel · May 12, 2023

Guess you convinced the wife that she didn't need the ocean?

I think I mentioned before that my in-laws had some land there. Although we went there to check it out last year before my father-in-law died (I think he wanted to make sure his wife knew where it was and to get it all sorted out) and it wasn't exactly in the best neighborhood.

That said, that area is pretty in a different way, like the Crystal River State Park area.

Sanrith Descartes · May 12, 2023

Gravel said:
Guess you convinced the wife that she didn't need the ocean?

I think I mentioned before that my in-laws had some land there. Although we went there to check it out last year before my father-in-law died (I think he wanted to make sure his wife knew where it was and to get it all sorted out) and it wasn't exactly in the best neighborhood.

That said, that area is pretty in a different way, like the Crystal River State Park area.

Yeah the ocean convo finally went the right way. The amount of house we are getting for the money is too good to pass up. My daughter looked up the census data and said "We are moving to the whitest place in America". My response... "Really?, I had no idea."

Caligula_The_Cat · May 12, 2023

Sanrith Descartes said:
Yeah the ocean convo finally went the right way. The amount of house we are getting for the money is too good to pass up. My daughter looked up the census data and said "We are moving to the whitest place in America". My response... "Really?, I had no idea."

Yeah, Pasco County is great bang for your buck.

Jysin · May 12, 2023

Sanrith Descartes said:
Yeah the ocean convo finally went the right way. The amount of house we are getting for the money is too good to pass up. My daughter looked up the census data and said "We are moving to the whitest place in America". My response... "Really?, I had no idea."

You're basically moving to where my mom and brother live. I visit on occasion. Can grab a brew when I am stateside and you're all settled.

Fogel · May 12, 2023

Same here, for what it cost to buy a house in St. Augustine, I could get the same house for half the money AND no HoA fees just by moving inland a bit, and I'm still just a 30 minute drive from the beach if I want to go. Also, the houses there are literally stacked on top of each other to the point you could pass your neighbors sugar through the kitchen windows, and the traffic is getting back. Where I'm at its so quiet and empty, very relaxing.

Gravel · May 12, 2023

Fogel said:
Where I'm at its so quiet and empty, very relaxing.

For now.

We chose where we're at because it's really got nothing touristy to do outside of the beach. But it's exploding like fucking crazy lately. We're already thinking we're going to have to leave within a decade.

We used to visit the in-laws in Orange Beach, AL, and it was a quiet town. Probably like Destin 30-40 years ago. Now it's insane. Orange Beach and Gulf Shores are responsible for something crazy like 80% of all of Alabama's revenue.

Lanx · May 12, 2023

Sanrith Descartes said:
Yeah the ocean convo finally went the right way. The amount of house we are getting for the money is too good to pass up. My daughter looked up the census data and said "We are moving to the whitest place in America". My response... "Really?, I had no idea."

i heard no matter where you buy a house in fl now, you need to buy flood insurance (unless you just buy it outright)

Sanrith Descartes · May 12, 2023

Lanx said:
i heard no matter where you buy a house in fl now, you need to buy flood insurance (unless you just buy it outright)

If you are outside a Zone 1 flood area, flood insurance is pretty dirt cheap. Its number one use is broken water heater or overflowing tub/toilet. Its so cheap there should be zero reason to not have it on every home.

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