Bang for buck on rental, Double wide or stick built (9%, price)

[marmac]

Originally Posted by annerk

Taxes ahve nothing to do with real estate appraisals. Two very different animals.

tax appraisers use sales of comparable property in setting evaluations,also

Evidently double wides on land must have a --history--of selling at a good price or my neighbor wouldn't have his appraised value set that high.

[marmac]

Originally Posted by Tony1790

Howdy,

I have some land that I've been unable to sell. I'm thinking about putting a few mobiles on it to generate some positive income.

Choices:

New 1036 sqft 3 bed, 2 ba dbl wide for $43,000, likely rent for $695

or build a small stick built 2 bed, 1 ba for $37,000, likely rent for $575

I could also get a new single wide for $27,000 rent for $595.

I also thought about used, but by the time you pay to have it moved, not too much cheaper than new?

$37,000 sounds quite low for a stck built 2 bed,1 ba

Thoughts? Trailer or stick built? The land is one piece and whatever is put on there will need to be sold as one piece when it's time to sell.

Tony

$37,000 sounds quite low for a --stick built 2 bed, 1 ba.

[plaidmom]

I'm not quite sure how to phrase this, but I think you also need to consider the type of tenant you will attract with each structure.

For $125 less per month, I'd prefer to rent to a single person, or perhaps a couple with one child. I think they live a lot "easier" (less wear and tear/dammage) on a piece of property than, say a large family, or even mult-families trying to squeeze into a 3/2.

Just something else to consider. Good luck.

[annerk]

Originally Posted by marmac

taxes are based on an appraiser's valuation of a property.

You defenitely can attend a meeting to protest if you think the appraiser's valuation is --more-- than the market value.

Taxes are based on a tax assessors assessment. An assessment and an appraisal are not the same thing.

[Tony1790]

Originally Posted by marmac

$37,000 sounds quite low for a --stick built 2 bed, 1 ba.

That's $65 sqft for 576 sqft house (24x24) The double wide is twice as big for not much due it being $42 sqft.

Pro for the house is smaller sqft = smaller family. Con for house is small sqft = smaller rents.

Pro for the trailer is bigger sqft = bigger rent and can be moved off the property is someone deems it to be no longer needed.

Tony

[Tony1790]

Originally Posted by annerk

Taxes are based on a tax assessors assessment. An assessment and an appraisal are not the same thing.

I live in a old double wide right now on half acre with attached garage, it appraised at purchase for $95,000. land value was about $10,000.

Tax appraisal was about $58,000 from the county.

Here is double wide is on a perm foundation, it appreciates in value just like anything else. I agree a house would go up more.

Tony

[Tony1790]

Originally Posted by plaidmom

I'm not quite sure how to phrase this, but I think you also need to consider the type of tenant you will attract with each structure.

For $125 less per month, I'd prefer to rent to a single person, or perhaps a couple with one child. I think they live a lot "easier" (less wear and tear/dammage) on a piece of property than, say a large family, or even mult-families trying to squeeze into a 3/2.

Just something else to consider. Good luck.

Good points, thanks

[beckycat]

Originally Posted by annerk

Ten years from not the stick built home will have appreciated by 25% or more. The double wide will have depreciated by half. Twenty years from now the stick built will have appreciated by 50% or more. The double wide will be worth 1/4 what you paid for it. Thirty years from now the stick built will have appreciated and be worth at least double what you paid for it. You'll have to pay someone to haul the doublewide off. Food for thought.

Definately a good point! I'd give you more rep, but it won't let me. Stick built all the way!

[DMenscha]

Originally Posted by marmac

My neighbor bought 5 acres of land, put a new double wide, breezeway, attatched garage and keeps his place immaculate.

Today, he could get twice what he has invested and that increase is not coming solely from that 5 acre parcel.

And yes, he is taxed quire steeply as the appraised assersor's valuation on his property ( land and double wide included) have soared.

If you can find a lender that will finance this kind of property for under 9% let us know.

[marmac]

Originally Posted by Tony1790

That's $65 sqft for 576 sqft house (24x24) The double wide is twice as big for not much due it being $42 sqft.

Pro for the house is smaller sqft = smaller family. Con for house is small sqft = smaller rents.

Pro for the trailer is bigger sqft = bigger rent and can be moved off the property is someone deems it to be no longer needed.

Tony

576 sqft house ?????????

How blazin small would the rooms be( you stated 2bd,1 ba) ?

Many migrant workers get housing furnished that has more sq ft.