Is your next best investment hiding in plain sight—right off the frontage road? Whether you’re an out-of-state investor, a local looking to diversify, or just real estate-curious, this breakdown compares two radically different opportunities in the Boise–Meridian market: a $600,000 single-family home and a $300,000 five-unit trailer park. In this blog, we’ll walk you through cost of capital, rehab expenses, cash flow vs. appreciation strategies, napkin ROI math, and tax benefits specific to Idaho. You’ll get side-by-side insights on real properties to help decide what offers better returns in today’s market—a turnkey home or a sweat-equity goldmine. Let’s get into the numbers.
🎧 You can watch Josh cover this more in detail in the video below 👇🏻
Is Boise’s Next Best Investment a $600K House or a $300K Trailer Park?
When you hear “investment property,” your mind might go straight to a polished single-family home in Meridian or a new build in Kuna. But what if I told you that a beat-up trailer park might actually outperform that dream home?
This isn’t theory—it’s napkin math. We’re comparing two real listings in the Treasure Valley:
- A $600,000 single-family home
- A $300,000 five-unit trailer park needing major repairs
Both are available. Both are viable. But only one makes sense when you factor in cost of capital, rehab expenses, net operating income, and tax advantages.
Let’s break it down.
1 – Cost of Capital: The Financing Realities in Boise
Q: What’s the hardest part of financing a trailer park versus a single-family home near Boise?
A: Trailer parks are often cash-only or require hard money loans. Banks hesitate with mobile homes—especially if they’re not on permanent foundations. In contrast, single-family homes can qualify for conventional, FHA, or VA loans.
Here’s how it stacks up:
- Trailer Park: $300,000 price tag, but financing options are limited. Expect to put down 100% or find a private/hard money lender. Balloon payments and steep rates are common.
- Single-Family Home: Use FHA (3.5% down), VA (0% down), or conventional (5%–20% down). These programs make entry more manageable, especially for house hackers or first-time buyers.
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2 – Rehab & Lease-Up: Sweat Equity vs. Turnkey Ease
Q: How much work is needed to lease up these properties in Meridian?
A: A lot, if you’re buying the trailer park. Expect $200,000–$250,000 in rehab costs. We’re talking broken windows, collapsing decks, overgrown trees, and interiors needing full gut jobs. The single-family home? Move-in ready.
Let’s quantify:
- Trailer Park: $80K in labor costs alone (unless you DIY). You could bring total rehab costs down to $120K or even $100K with thriftier sourcing and sweat equity.
- Single-Family Home: Possibly just blinds or cosmetic updates. That’s it.
🛠️ Investing sweat equity could dramatically shift your ROI. More on that below.
3 – ROI on a Napkin: 4.9% vs. 9.4% Return
Q: How can a simple ROI calculation help decide which investment to pursue?
A: Divide your annual income by your total investment. Simple. Let’s crunch the numbers.
| Property Type | Total Cost | Annual Rent | ROI |
| Single-Family Home | $600,000 | $28,800 | ~4.9% |
| 5-Unit Trailer Park | $500,000 | $48,000 | ~9.4% |
The trailer park nearly doubles the return.
Even before factoring expenses, it’s clear which property wins on raw cash flow. But what happens when we account for real-world costs?
4 – Actual Cash Flow: NOI, Cap Rates, and Sweat Equity Upside
Q: What’s the real-world profit after expenses?
A: The trailer park still comes out ahead, even when managed professionally.
Here’s the breakdown:
- Gross Rent: ~$57,600/year (fully leased)
- Vacancy (8%): -$4,600
- Operating Costs: -$11,000 (taxes, insurance, utilities, management)
- Net Operating Income (NOI): ~$37,000
Cap Rate: ~7.4%
If you do the rehab yourself and reduce the all-in cost to ~$430,000, your cash-on-cash return jumps to 8.6%, with monthly income of ~$820.
By contrast, the single-family home—when financed with 20% down—shows a negative cash flow of ~$823/month, even before taxes and insurance.
5 – Tax Perks: How Each Property Affects Your Tax Bill
Q: Which property provides better tax advantages in Idaho?
A: Depends on your strategy.
- Single-Family Home: If you live in it first, you could qualify for the capital gains exclusion—up to $250K (single) or $500K (married) tax-free after two years.
- Trailer Park: Treated as personal property. That means accelerated depreciation—a massive benefit if you’re a real estate professional or high-income earner.
So, if you need to offset income, the trailer park could reduce your taxable income significantly.
6 – Location, Exit Strategy & Long-Term Flexibility
Q: How does location impact long-term flexibility?
A: Big time.
- Trailer Park: Sits on a frontage road near commercial zones. Potential to convert to car storage or lease to neighboring businesses—especially auto repair shops already overflowing nearby.
- Single-Family Home: Zoned strictly residential. You’re limited to one tenant or possibly room rentals.
That kind of flexibility in use—and exit options—makes the trailer park much more than a basic rental play. It’s a strategic land position.
Ready to Take the Next Step?
Whether you’re thinking of relocating, buying your first home, or just staying informed on the Idaho housing market, we’ve got everything you need to make confident moves.
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10 Most Googled Questions About Boise Rental Investments
- What’s better for building cash flow near Boise: trailer park or single-family?
A: The trailer park yields nearly double the return, with diversified rent streams. - Can I finance a 5-unit trailer park in Meridian?
A: Not easily. You’ll likely need cash or a hard-money lender. - How much should I budget for trailer rehab in Idaho?
A: Anywhere from $100K–$250K, depending on whether you DIY or hire it out. - How do I calculate ROI on Boise rentals?
A: Divide annual rent by total cost. Aim for at least 7–8% for cash flow plays. - Can I Airbnb a single-family home in Meridian?
A: Regulations vary. Most neighborhoods don’t favor short-term rentals right now. - What are typical down payments on Idaho investment properties?
A: Expect 15–25% down for investment financing; 3.5% if buying as a primary. - Do trailer parks offer better depreciation for taxes?
A: Yes. Accelerated depreciation on trailers + improvements offers major savings. - Is commercial zoning better for future value?
A: Yes. Commercial frontage adds flexibility and exit potential. - What’s a good cap rate for Boise rental properties?
A: 6%–8% is considered strong in this market. - Which property wins in a downturn?
A: The trailer park—with lower rent thresholds and multiple tenants—is generally more resilient.
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