April 5, 2010

Any mobile home experts can explain this rent-buy ratio?

Beds: 1
Baths: 1
Sq. Ft.: 576
$/Sq. Ft.: $64
Lot Size: -
Property Type: Single-Family Home
Community: Brisbane
County: San Mateo
MLS#: 368217
Source: San Francisco MLS
Status: Active This listing is for sale and the sellers are accepting offers.
On Redfin: 4 days
MOBILE HOME attractive clean pleasant w/ newer appliances, near 101, airport, and near Brisbane school district.
image

Thanks to Burbed reader Jeff for this find.

OK all you finance and MBA types out there… what’s up with this? How can this be on sale for $37k, but rent for $775?

Shouldn’t it be the other way around? Rent for $37 a month, sell for $775k?

Any ideas?

Comments (19) -- Posted by: burbed @ 5:52 am

19 Responses to “Any mobile home experts can explain this rent-buy ratio?”

  1. aa Says:

    Yeah, what is the rent on the land on which one would park this turd?

  2. sonarrat Says:

    I think you’ve got it wrong. That $775 is probably the monthly space rent you have to pay. To be honest, not bad at all for a place that has 24-hour bus service to San Francisco.

  3. Alex Says:

    burbed, you brainfart communist, that’s for space rental.

  4. nomadic Says:

    That $775/mo probably gives you the lot space, water and electricity. Do you suppose they throw in cable?

  5. nomadic Says:

    Let me attempt to pre-empt RE’s cheerleading today:

    Contracts for the sale of existing homes rose sharply in February, possibly indicating a second surge of home sales due to the extended homebuyer tax credit, a widely watched industry report said Monday.

    In the single-biggest monthly rise since October 2001, the National Association of Realtors’ (NAR) Pending Home Sales Index rose 8.2% in February to 97.6 from a downwardly revised 90.2 in January. The increase surprised economists surveyed by Briefing.com, who were expecting a 1% decrease.

    http://money.cnn.com/2010/04/05/news/economy/pending_home_sales/

    Sounds good, yes? But wait, there’s more – our region gets the consolation prize:

    Home sales contracts fell 4.8% from month-to-month in the West, but still fared 14.6% better than last year in that region.

  6. WillowGlenner Says:

    I wonder if “Brisbane school district” is a selling point. I had a job once near brisbane, actually it was in those white buildings in SSF across the street right before you drive over the bay. There was NOTHING, I mean NOTHING in Brisbane but one tiny strip mall with a subway in it. A complete wasteland. But anyway speaking of investing, check out these in VALLEJO.

    $320K
    http://www.zillow.com/homedetails/5801-Cabernet-Dr-Vallejo-CA-94591/15678843_zpid/

    $210K (2100 sq feet and a 2/1?)
    http://www.zillow.com/homedetails/624-Alabama-St-Vallejo-CA-94590/82967309_zpid/

    $110K !!!
    http://www.zillow.com/homedetails/33-Frey-Pl-Vallejo-CA-94590/15652665_zpid/

  7. Zak Says:

    I have thought about investing in a trailer park. Here is one property that looks interesting:

    This is a new park completed in October 2009. The park has all new underground utilities and a state of the art sewage treatment plant. The lots are large and very desirable. The park is a 55 and older complex and the only one available in the entire area. It sites on 6.5 beautiful view acres with a river across the Hwy.

    The terms for this park are very good with a great return on your investment. With 25% down and a $10,000 recap on each trailer that moves in, it will only take about 10 years to own the park outright. Please feel free to e-mail or phone me for all of the details.

    $200,000 recap on price after move in making the net sale $900,000.

    Buyer will recap the $200,000 after the park is full.

    Around 1.1M for a trailer park with rent at $425 for 20 spaces seems a little high proced for me.

    1. What is all this recap?

    2. At the rate mentioned above, rent is around $100K per year. That is a return of 9% on investment. What is the down side here?

    3. Overall how do trailer parks compare to other investment properties. Currently none of them are doing that well outside the RBA but are trailer park better off that other investments?

  8. SEA Says:

    It seems that anytime the government is handing out cash, activity increases near the deadline. It’s not a question of whether or not activity was going to increase near the tax credit deadline, but rather, what happens after expiration.

    Are the unsold homes suddenly going to be worth an extra $6,500 or $8,000? Yes, Yes, I know that’s not much as contrasted to the typical Bay area sale.

    What is going to happen to sales and prices after June 30? If possible, the discussion should include what’s going to happen in Vegas, where houses can be purchased for $80,000 ($72,000 net if first-time home buyer). Are those Vegas homes suddenly going to be worth an extra 9% to 11%? (9% = 6.5/73.5 | 11% = 8/72)

    What I really don’t understand is why people buy $500k homes complain about the cost of a gallon of milk or gas.

  9. WillowGlenner Says:

    Zak, trailer park is ok- a good investment. The people that buy trailer parks (this is the PARK, the land not the trailer) tend to be people that want to make land investments in subsidizeable land locations, and they want some income coming in. Thats what I have noticed. So somebody wants to buy a plot of land, a few acres for example in an area with the right zoning, but they do not want just land due to no income to offset costs, they will buy a trailer park *if they can find one*. Longer term you can sell that park for high $$ to a RE developer to build homes or condos, and in the meantime you don’t have to do too much yourself. But all of this assumes the land is in a land locked area. I would be hesitant to buy a trailer park outside of San Jose or an outlier like Milpitas. thats as exurb as you should go, and even then, you need to check the viability of the land vs what is available there. A trailer park in Gilroy for example would not be worthwhile. There are some trailer parks on the east side of 101 around redwood city. Not sure if that is EPA or RWC or what, but those are probably GREAT investments.

  10. sonarrat Says:

    Those parks on E Bayshore are in Redwood City. There are also scads of trailer parks in Mountain View and Sunnyvale, mostly east of 101.

  11. madhaus Says:

    There’s a trailer park in Mountain View right at the 85 South entrance on Southbound El Camino Real. Location, location, location!

    nomadic, good pre-emption but not needed. Didn’t RE say he was taking another multi-timezone multi-country vacation this week due to break at the kids’ school? Ooops! Palo Alto school district is on break next week. Either his kids don’t go to school in Palo Alto or he’s yanking them out a week early because he values their education so highly.

  12. mike Says:

    Vintage at Lighthouse Point is a luxury tri-level residence community located at the heart of Lighthouse Point, Florida. Vintage firmly believes that regardless of price, size, or location, all buyers want their builder to deliver is value.  It is an ideal home for first time home buyers and the on-the-go professional that desires a maintenance free lifestyle.  The solidly built townhomes feature high impact windows and concrete block construction throughout. In addition to the high-quality construction you will enjoy the charming gated entry, heated swimming pool and hot tub. Call the sales center today at (954) 943-7754 for more information or visit the website of the newest luxury townhome community in South Florida at http://www.vintageatlighthousepoint.com.

  13. madhaus Says:

    Do we have to?

  14. Petsmart groomer Says:

    > Vintage at Lighthouse Point […]

    Can it be any better than Gables End? Call 650-988-9955 now!

  15. nomadic Says:

    Florida sucks. Humidity and old people galore. Why would anyone from California want to vacation there (unless they it’s an obligatory visit to family)?

  16. Petsmart groomer Says:

    > Florida sucks. Humidity and old people galore.

    Actually the old people are there to suck in the humidity. It would be much worse without the elderly.

  17. Real Estater Says:

    Hot off the press from CBS Money Watch:

    3 reasons why now is the best time to buy a home

    I truly believe that we’ll look back on these years as an optimal home buying opportunity.

  18. madEstater Says:

    Hot off the press from CBS Money Watch:

    3 reasons why now is the best time to buy a home

    Oh no! Should I buy at Vintage at Lighthouse Point, or at Gables End? I know! I’ll buy both!

  19. Real Estater Says:

    madEstater,

    Whatever happened to your plan to move to Palo Alto? Altaire is for sale now, by the way.


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