Author Topic: Renting Out House & Living in a travel Trailer!  (Read 7859 times)

malacca

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Renting Out House & Living in a travel Trailer!
« on: August 23, 2014, 06:39:12 PM »
We are sick of the cold weather and have decided to spend part of next winter in a warmer place. We are stuck in the north until December.

But that warmer place, San Diego, is expensive. So we decided to buy a travel trailer and live on the ocean.

Rent out our house = $2800 income.

Used 32 foot light weight trailer with 2 bedrooms (& two slides) = $15K.

Camping spot on the ocean = $800 a month including all utilities. Not a huge spot - but a spot.

Extra expenses - coin laundry, eat out a bit more, etc. = $250 a month but less than what we would pay in gas & electric in our house - so a wash.

Depreciation of travel trailer = $150 a month.

Extra beer & wine needed for sanity while living in a small place = $200 a month.

We will park - not move around (kids will be in school). We will travel in the summer (overseas) & put the trailer in storage. If it goes well we might try it again in the fall.

So we should be up at least 1.5K a month!

Still not sure on which travel trailer - but narrowed it down to the following:

1/2 ton towable. We probably will have a newer F-150 Crew with 11K towing capacity.

At least 32 feet.

Two bedrooms (not just bunks). Kids need a "spot" to play, etc.

Not a fifth wheel.

I was planning on buying one here in the north and dragging it out there - then my wife said I was an idiot and should just but it out there. She has her moments.

Bohemian or bust!





« Last Edit: June 25, 2018, 06:25:03 AM by malacca »

Exprezchef

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Re: Renting Out House & Living in a travel Trailer!
« Reply #1 on: August 24, 2014, 08:06:13 AM »
We have some good friends that do that and are very happy. We live in the San Diego area and they live in the Vancouver BC area. We met a number of years ago on a cruise and even though they are a few years older than us, we have a lot in common and have remained friends ever since. They come down to San Diego around November and stay in a very nice paid-for 5th wheel trailer at Campland on the Bay in San Diego until March or April then head back up to Canada. The trailer stays in storage down here and they pay a guy a few hundred bucks to haul it out of storage and put it into their reserved spot in the campground. They live what most would describe as a Mustachian lifestyle and were both able to retire early. They sold the truck that was no longer needed to haul around the trailer and only have one car that is driven down from Canada. Due to the close proximity of the campground to grocery shopping, they are able to ride bikes most everywhere close. The house in Canada has long since been paid for so it remains empty and a neighbor keeps an eye on it for them while they are gone. They are avid cruisers and use their southern California location as a base for budget travel. They choose to spend their retirement income on "life experiences" and not the big house and fancy cars. It works very well for them.

madgeylou

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Re: Renting Out House & Living in a travel Trailer!
« Reply #2 on: August 24, 2014, 08:20:10 AM »
our plan is to do the same. we are looking at buying either a property or a house with a few acres of land in northern california, oregon, washington state, or colorado, and living in an airstream while we either build a house (if we buy land) or rent the house out (if we buy a house).

probably don't want to do this forever, but a few years of this will turbocharge our FI funds and leave us with an income-producing property in the end. that's the goal anyway! my husband and i found that we really don't mind a small space at all as long as there is beauty outside.

malacca

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Re: Renting Out House & Living in a travel Trailer!
« Reply #3 on: August 24, 2014, 09:13:44 AM »
Exprezchef - wow, sounds like your friends plan is very similar. Of course we have 2 young kids in the mix - one in first grade.

I am debating having a truck or hiring someone to move the trailer. I amy still need a truck as I may move the trailer up to Silicon Valley for the summer as a company has been asking me to do some work.


Bob W

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Re: Renting Out House & Living in a travel Trailer!
« Reply #4 on: August 24, 2014, 03:24:21 PM »
Sounds like a plan.  Negotiate hard on the trailer.  They generally are hard to sell.  Go way below book value.   IMO. Buy at destination.  Might find one at the park. 

Dicey

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Re: Renting Out House & Living in a travel Trailer!
« Reply #5 on: August 24, 2014, 04:08:41 PM »
I have an aunt who used to do something like this. She had an old travel trailer and she kept it stored in Pismo Beach (Central Coast of CA). Whenever she wanted some beach/golf time, she'd reserve a spot at the State Park and her storage place would pull the trailer to her spot and set it up for her. When she was done, they'd haul it back until next time. I'll bet the thing was over thirty years old. Since she wasn't hauling it long distances it worked great for her.

Willbrewer

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Re: Renting Out House & Living in a travel Trailer!
« Reply #6 on: August 24, 2014, 08:36:39 PM »
I've done something similar to what you are planning, malacca. I bought a travel trailer and truck in 2010, (both paid-off now) and left the Kansas winters behind. I spent a couple of years snowbirding and seeing the USA, coast to coast, north to south. I had three houses that I finally sold, last one in Dec, 2013.

My passive income took a hit, so I relocated to the Pacific Northwest, where I'd lived before and where my sons live, and got a full time job. I'm living in a nice RV park that charges $425 monthly lot rent- typical expenses- all utilities included but electric.

With no mortgage, no debt, full time income from a job and enough passive income to pay all my living expenses, I'm in good shape financially and enjoying a frugal existence. I've been able to save every penny of my job income, plus some extra, since I started the job in May.

After owning three houses at the same time (all were fixer-uppers), I really enjoy NOT having the noose of real property ownership around my neck- that's my perspective at this time. And if my boss pisses me off too much, I can quit, hook up to my truck, and drive down to the Quartzsite AZ desert again for another winter, where $180 pays for 7 months (Sept 15 - April 15) of long term camping, water, trash and dump stations included. No electric though, but that's why I have a generator.

Good luck achieving your goal. Sounds like a great plan.

malacca

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Re: Renting Out House & Living in a travel Trailer!
« Reply #7 on: August 24, 2014, 10:33:58 PM »
livingthedream - nice little blog. Nothing can replace those memories. Golden.

Bob Werner - thanks for the encouragement. I figured the market was something along those lines. It seems people buy new and then don't need the trailer anymore and expect to get back most of what they paid. I just couldn't imagine buying new. I figure 3 to 5 years old at 50 cent on the dollar. I probably will sell whatever I buy in a year or two. If I overpay I will also be stuck like many others.

Willbrewer - Rentals do get old. I had SF homes but it was too hard to maintain so many units. I now have fully furnished condos and town homes - easy to maintain and I get a better clientele. I hired a lady to manage them when I leave. She is not a real estate agent and I pay her $20 an hour. So far has worked well. I have a handyman on call but haven't actually called him yet - no need.

I have driven by Quartzsite many times. I always wondered why people were living there / what type of people. Might have to stop in one day.

Great that you can keep your freedom - very important.

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Re: Renting Out House & Living in a travel Trailer!
« Reply #8 on: August 25, 2014, 05:44:26 AM »
Dont want to be negative but your kids are going to really get made fun of for living in a camper.

Willbrewer

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Re: Renting Out House & Living in a travel Trailer!
« Reply #9 on: March 24, 2016, 10:26:36 AM »
livingthedream - nice little blog. Nothing can replace those memories. Golden.

Bob Werner - thanks for the encouragement. I figured the market was something along those lines. It seems people buy new and then don't need the trailer anymore and expect to get back most of what they paid. I just couldn't imagine buying new. I figure 3 to 5 years old at 50 cent on the dollar. I probably will sell whatever I buy in a year or two. If I overpay I will also be stuck like many others.

Willbrewer - Rentals do get old. I had SF homes but it was too hard to maintain so many units. I now have fully furnished condos and town homes - easy to maintain and I get a better clientele. I hired a lady to manage them when I leave. She is not a real estate agent and I pay her $20 an hour. So far has worked well. I have a handyman on call but haven't actually called him yet - no need.

I have driven by Quartzsite many times. I always wondered why people were living there / what type of people. Might have to stop in one day.

Great that you can keep your freedom - very important.

Wow, I know it's been a long time, but I did get tired of my job (actually it was too physically demanding for my old[er] body), so I ended up quitting after 5 months. I continued my stay at the RV park in WA until September, 2015. Drove on down to Quartzsite, stayed there for 5 months, and now I'm in Moab, UT.  I'll remain here until mid to late April, or until the weather in the NW begins to cooperate.

thek1d

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Re: Renting Out House & Living in a travel Trailer!
« Reply #10 on: March 24, 2016, 10:31:36 AM »
What are you doing with your belongings in your house while you rent it out? Renting as fully furnished? Is there a market for ST rentals in your area when the weather is at its worst?

Willbrewer

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Re: Renting Out House & Living in a travel Trailer!
« Reply #11 on: March 24, 2016, 10:50:05 AM »
Sold my houses, and my most prized possessions are in a storage unit.

Chavak

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Re: Renting Out House & Living in a travel Trailer!
« Reply #12 on: March 25, 2016, 11:47:38 AM »
We are sick of the cold weather and have decided to spend part of next winter in a warmer place. We are stuck in the north until December.
Rent out our house = $2800 income.

Is this something you plan to do year after year? If so, I would definitely check the IRS regulations about how many time you can rent out
your primary residence before you run into tax problems.


malacca

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Re: Renting Out House & Living in a travel Trailer!
« Reply #13 on: June 13, 2018, 09:38:01 AM »
Gosh, I never did follow up on this.

We had a great year living in an RV. We ended up with a 36 foot trailer and a good deal on an F-150 I bought cheaply in Canada.

We sold both for more than we paid after a year of use! So much for our depreciation schedule. How? I bought in October in MN. Some guy had bought a new travel trailer but realized his kids were too young. He didn't want to pay for it sitting another winter. So I got a deal. And when I sold it, it was prime season in Cali. So I made 4K off the deal. And my truck also sold for more than I paid.

Those are old memories as we are now overseas (typing this from Cambodia at the moment).

The financial figures we estimated were pretty correct.

We ended up inland rather than on the ocean - because the Mandarin school was better.

Lot rent was $800 a month. Spent another $100 on laundry, elec, and internet.

Kids went to LegoLand so many times the staff knew them of first name basis.

F-150 EcoBoost was MUCH better than I imagined. Towed that 36 foot beast with ease.

My kids miss our RV days. Best part was the great RV culture. Met many great people.

We will RV around Europe in the next 3 or 4 years.



Original Post:
We are sick of the cold weather and have decided to spend part of next winter in a warmer place. We are stuck in the north until December.

But that warmer place, San Diego, is expensive. So we decided to buy a travel trailer and live on the ocean.

Rent out our house = $2800 income.

Used 32 foot light weight trailer with 2 bedrooms (& two slides) = $15K.

Camping spot on the ocean = $800 a month including all utilities. Not a huge spot - but a spot.

Extra expenses - coin laundry, eat out a bit more, etc. = $250 a month but less than what we would pay in gas & electric in our house - so a wash.

Depreciation of travel trailer = $150 a month.

Extra beer & wine needed for sanity while living in a small place = $200 a month.

We will park - not move around (kids will be in school). We will travel in the summer (overseas) & put the trailer in storage. If it goes well we might try it again in the fall.

So we should be up at least 1.5K a month!

Still not sure on which travel trailer - but narrowed it down to the following:

1/2 ton towable. We probably will have a newer F-150 Crew with 11K towing capacity.

At least 32 feet.

Two bedrooms (not just bunks). Kids need a "spot" to play, etc.

Not a fifth wheel.

I was planning on buying one here in the north and dragging it out there - then my wife said I was an idiot and should just but it out there. She has her moments.

Bohemian or bust!
« Last Edit: June 13, 2018, 09:40:59 AM by malacca »

terran

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Re: Renting Out House & Living in a travel Trailer!
« Reply #14 on: June 13, 2018, 10:09:58 AM »
We are sick of the cold weather and have decided to spend part of next winter in a warmer place. We are stuck in the north until December.
Rent out our house = $2800 income.

Is this something you plan to do year after year? If so, I would definitely check the IRS regulations about how many time you can rent out
your primary residence before you run into tax problems.

You need to have lived there as your primary residence for 2 out of the past 5 years when you sell to get the primary residence capital gains exclusion. Even then I think you have to recapture depreciation from the time it was a rental.

Edit: Just realized this is a very old thread, so presumably the OP has figured this out if needed, but I'll leave it in case it's helpful to anyone else reading.
« Last Edit: June 13, 2018, 10:12:06 AM by terran »

Dicey

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Re: Renting Out House & Living in a travel Trailer!
« Reply #15 on: June 13, 2018, 10:31:10 AM »
Thanks for the update, @malacca! It sounds like you're leading a very interesting life. Tell us more, please!

malacca

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Re: Renting Out House & Living in a travel Trailer!
« Reply #16 on: June 25, 2018, 06:28:24 AM »
Yes, moved back into house for a year. Now out again. House is renting well so probably won't sell it. We may end up back in the US for this and that. House is cheap & cheerful in a great neighborhood with great schools.

We hope to RV though Europe at some point. But I am sure the vehicle will be much smaller.

letsdoit

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Re: Renting Out House & Living in a travel Trailer!
« Reply #17 on: June 25, 2018, 12:38:52 PM »
I've thought about RV in Europe long term.  of course, you'd have to buy there, I don't know if that would be more complicated.  and the 6 months Schengen visa deal, of course, unless one has residency