Monday, December 24, 2018

rent to buy 2 of 3


RENT TO BUY 2
It used to be that if you “rented to buy” ( if you made payments on a mobile home and parked it on a rental lot ), you were getting the worst of both worlds.  You were stuck in debt and stuck with escalating rental costs. And you couldn’t control if the land owner sold the land under you to sell to a developer.  Then you were stuck with a mobile home that wasn’t worth the cost of moving, IF you could find another lot.  And you had to pay to maintain the low quality home, a further insult.
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But let us quickly review the other options.  Somehow you must come up with 10% down on a home, which is overpriced, which never seems to be able to be sold easy or quick enough if you need to move to find another job.  Or, you pay just as much if not more to rent a home or apartment, and you never see anything in return but grief as the idiots upstairs play rap with lyrics like “Kill Whitey” and keep you awake.  Remember that cop that just got busted for killing an  apartment neighbor?  Comeuppance, sure, but who can’t relate?
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Myself, I simply cannot condone the insane costs of housing.  You cannot convince me that a gum and glue piece of crap house is worth a quarter of a million dollars.  And if you move to another part of the country where they go for $150k, you are paid less, if you can find a job, so you have gained very little.  And I STILL think $150k is too much.  The bankers might claim you can afford that, but of course they would.  I wouldn’t pay more than twice my salary. Certainly not five times. 
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The last time I took out a loan, it was twenty percent down and I then owed six months wages on it.  The only problem was that the lot rent equaled the mobile home loan.  But it was far less of a problem than renting an apartment, and it was one seventh the cost of buying on land.  It wasn’t a long term solution, but it was the cheapest at the time.  Then I abandoned any equity or investment to leave the area, so it would have been cheaper in toto to rent an apartment.  I would have lost out equally either way.
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But at least I had options.  With a house, I would have been stuck.  With an apartment I would have had zero investment to lower the cost of exercising other options.  Okay, now, I understand with a house there COULD have been an investment to cash in.  But with a home you lose one very important option, and that that you cannot just walk away.  The cost is too high to ever do that.  With a used mobile home or apartment, it is a cost you can reasonably absorb as a loss.  Never so a house.
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I never thought a mobile home was a good investment.  They are made by drunk retards from Chinese materials.  BUT!  At least they depreciate like a car.  Houses, unless in a completely blighted area, do not.  And so here is where you ask yourself WHY.  Why do you need your shelter to appreciate in value?  Well, it is because you need MORE next time to buy another house if you need to move.  But if you just stick with mobile homes, and only buy used, you can use the depreciation as a positive aspect ( unless it is on land that will appreciate ).
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A rented lot mobile home can easily have affordable prices.  But those on a piece of property still see home like appreciation even if the shelter itself is worthless.  So, it isn’t the rental that screws you on mobile homes as much as it is unrealistic land values.  I used to advocate just living in an RV rather than a mobile, as they were far better quality and far cheaper, but that isn’t necessarily the case anymore.  RV’s are now made so much worse and so much more expensive, it isn’t as cut and dried as it used to be.
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You CAN move an RV dozens of times.  If you try that with a mobile home you’ll leave chunks of it behind you on the road.  And it is a specialty mover for a mobile, whereas anyone can tow an RV.  The only thing is, the RV will suffer from unseen water damage in the walls and everything from the walls to any furniture is very shoddy.  I can’t even guess if it is all that repairable like it used to be.  I do know a $50k price tag assures you of ZERO quality, from boots on ground reporting.
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Wouldn’t it be cheaper just to buy a beat to crap mobile home for $5k, then move and sell it for $3k, all the time paying a mere 25% premium in lot rent over the RV?  Of course, if you bought a pre-2005 RV ( 90’s would be better, IF you could find a lot to rent ), even if you overpaid for it slightly, you could in theory keep your costs at the lowest possible level. IF you can live in an RV.  Some wives will refuse.  But some wives want an apartment or house, so you are screwed anyway. 
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I do think you should abandon all thoughts of home ownership, unless you build it yourself.  It you keep your greed and neediness under control and build a much smaller house, you can do so for under the cost of even a very used mobile home.  Even building under that expectation of a very small house, you could opt for a very cheap cabin.  Anyone can afford that, and it is cheaper and cozier than any RV.  But that could be your fallback plan.  First you must have affordable shelter by your job, then work towards that cabin.
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Tomorrow I’ll finish this up.  The whole context is to achieve the cheapest rent and then the cheapest shelter, but always factoring in anticipated economic contractions.  If you can’t see a house being viable in thirty years, and you know you won’t have a job long term for rent, what combination of renting and buying do you need to follow?  Obviously, the cheapest rent as you save for the cheapest paid off shelter.  Easy enough, it is just picking the best options at the best time.  I won’t even mention junk land, again.
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Anyone can move to junk land ( listings here ) tomorrow,  with a few hundred dollars.  A down payment ( of course, that assumes a job awaits you ) and gas money.  Then live out of the car as you build your cabin from a dome ( click here-fastener kit ) covered in ferrocement ( materials and ratios click here ).  Lemon squeezey.  This is what I advocate.  For you, this series is for more conventional structures and living arrangements.  Same bat channel tomorrow.
( .Y. )
( today's related link here )
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note: free books.  Zombies series here.  Shorter than normal, but it looks interesting.  The collapse from an elite's POV here.  One dude saving the world here.  
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43 comments:

  1. It seems a lot of people today are just not smart enough to buy a home. In the last 20 years or so I have not known anybody that rented a home full time except for my son, who I believe is an idiot for doing so. In the past 15 years he has moved 5 times and believes he probably will again. If done properly, buying and selling a home can be done very quickly, and money made on the deal each time. But like I said, a lot of people aren't smart enough.

    It's not really possible to build an adequate home yourself these days and for a number of reasons. These are not my reasons, but reasons other people have contrived. In my opinion, if you own the something you should be able to do with it as you see fit.

    The best advice I can offer is that when dealing with anything that costs more money than you are willing to lose, you need to hire an attorney. Even if you are a genius, and even if you have bought and sold lots of expensive things. Times, and rules change, and at such a rate it is impossible for the lay person to keep up. Lawyers keep up because it is their job, plus when you contract an attorney they are legally obligated to perform. Also, if lawyer 1 believes his work will be checked by lawyer 2, he will perform better. I'm not saying to hire 2 lawyers. Perception is everything. Life is hard, but life being stupid is even harder. Nobody is an expert at everything. Failure is not a 100% bad thing cause it is a powerful learning experience for those hungry to learn.

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    1. "and money made on the deal each time". Ah...2008? You are basically correct, it is just that I believe that the Always Profitable cannot last forever. Historically food has always been the major expense, not housing. That is recent, and a function of the financial elite. Feed them all cheap carbon fuel foods, see them overpopulate, charge the crap out of everything else but food to profit. And food is next.

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    2. I got lucky in 2008. I sold my home 1 week before the crash. I had a nice couple that wanted to buy but only after their home sold. They had a lot of offers but nothing that met their price. I offered to take 10K of my price if they would take 10K off theirs. Their home sold in less than a week, and mine a few days later. Dodged a bullet as I could have ended up with 2 houses!

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    3. I moved up here just a few months prior to the crash. With that I tripled down on preps. Because nobody gets that lucky twice!

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  2. cant tell if this is posting to you or not.. just delete any duplicates :)

    James,
    Just a quick thought exercise her:

    possible options could include buying that used RV and parking it on the junk land... BUT you have to build a pole barn over it! This gives you some normality for the reluctant spouse, and it protects the inferior construction from weather wear. Additionally, a simple frame wall barn with large windows does not have to be insulated, just stopping the wind from hitting the RV makes massive differences - and the large windows on the barn let the light in. Heck you could even use an old 55 gallon barrel wood stove in the barn to help mitigate the temperatures.

    In summer the barn roof keeps the sun off the RV roof (major destructive force) and large barn doors can be opened for a breeze.

    A lot of remote parcels may not allow housing. or maybe you want a little stealth. nobody looks twice at a barn.

    In some parts of Oregon I have seen mobile homes put on bricks, then had an entire frame built around them with rooms added on.

    Of course there is the ultimate solution in my book.. move to a boat. Better construction and easier to move away from neighbors. Around here you pay at marinas by the foot for your boat. Anchor away from the marina, live aboard and have a 12' dinghy (small boat) that you pay to moor at the marina - this usually gives you access to a place to park the evil car if needed, garbage disposal, water supplies, sewer disposal and even showers! all at minimal cost. Move the boat around occasionally (and if you use a sailboat you can often move with no fuel cost!) so you don't show up on anyone's radar. Keep it clean and you won't even be noticed.

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    1. If I liked the jungle, I've always thought a houseboat on the interior rivers of Florida would be sweet.

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    2. If you're going to build a pole barn why not finish it out and live in it and skip the expense of all the RV stuff? I helped a guy do this earlier this year and I know 2 other people that are doing it right now. If you have the ability to build, do it!

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    3. To my way of thinking, the pole barn allows at first just a roof. Then add sides as funds permit. Then add on more whatever. The point is to have a rent free house while you build.

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    4. I'll give you a little bit of design/engineering education for free. Roofs are heavy and must be supported, in this case, by poles, hence, pole barns. Poles carrying heavy stuff like roofs must be supported by foundations with reinforcing. What I just described are all of the structural aspects of the pole barn, and the most expensive parts.

      Since the poles, that are holding up the roof, are the structural aspects of the walls the in-fill material, what most people think of as walls in a normal building, are non structural and relatively cheap. If the poles are on 8' centers, for example, 1/2" plywood can be nailed to them. Ta-Daaaa let there be walls.

      If cost shifting is the plan, then purchasing the RV first and then building the roof, is the long and most expensive way to do it.

      FWIW, there are companies out there that specialize in pole barn construction. They build them fast. Very fast. They can put up the poles, roof, and walls big enough for a standard RV in 3 or 4 days, and the cost of a pole barn is way under normal house construction. A friend had a 60'x80' built turn key for $60k. That's 4800 sf for $60k or about $12.5 per sf. Therefore, a pole barn big enough for an RV, say, 20' x 40' (800sf), by the numbers, would cost about $10k. Just guessing, the materials (no labor) for a 20'x80' pole barn would be about $5k. Pole barns are typically pressure treated lumber because they are exposed to the elements and therefore most expensive than untreated.

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    5. You live in the RV for free, save money, then buy the roof, etc. Now, this USED to be a viable strategy, because RV's were better and cheaper. Having a covered RV you had "free" appliances and furniture. Already paid for. You're looking at a cheap house. And that is fine. But I'm talking about much cheaper shelter. For lower wage earners, a cash on barrelhead strategy. Building a cabin to be turned into a shed later, as you save cash, is now smarter than getting an RV, true. But you are living in the RV in town so you get a two-fer.

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  3. Bison,
    Nice hair.

    re:
    Living full-time in a Recreation Vehicle designed and engineered for occasional weekend trips

    No.

    Travel in a vehicle is the equivalent of:
    an earthquake, during
    a hurricane, during
    a riot.

    Every RV has a leaking roof.
    Every RV has water damage in the ceiling and walls. Spongy floors?

    I am an esteemed 'Senior Member' on IRV2, a massive forum dedicated to sharing tidbits about mobile living.

    Despite all the evidence to run screaming for the hills, innocents consistently invest their life-savings and their retirement in 'Chinese crap assembled by drunk tards'.

    Then, instantly or a few trips later == usually instantly == they whine about those devious RV manufacturers and dealers and salespeople. Are some RVers too myopic to recognize a pattern as obvious as... here, I'll offer an example:
    In Eugene Oregon, we have a local branch outlet of the vehicle re-sale auction called 'Copart'. Insurers dump their wrecks and burns here so optimists can bid in the hopes of re-building the wreck / burn to use or turn a profit.

    Every day, Copart has dozens of new and newish RVs in various degrees of Ruth Bader Ginsberg.

    Criminy.

    [shakes head] In my opinion, the 99% deserve everything they get.

    More to follow.

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    1. Of course, in defense of the 99%, it IS Eugene Oregon. :)

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    2. "Every RV has a leaking roof."

      I've seen a guy on TV cut the bottom out of a small boat and then patch it with that Flex Seal stuff and drive it out on the ocean. Why can't the top of the RV be the bottom of that boat with Flex Seal all over it?

      Then there's those travel trailers that are made out of 1 or 2 pieces of fiberglass and 100% waterproof. All wood that "might" become wet must be designed in such a way that it is easily and inexpensively replaceable.

      The thing that turned me off the most about RV's is the thing I read that stated the innards of the RV are installed before the walls and roof are installed because they act as structural members allowing the walls and roof to be made thinner, lighter, cheaper. None for me, thanx.

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    3. They have a really affordable white gooey coat for mobile home roofs. It cost me one five gallon bucket for the entire roof. That is perfect for an RV. But somehow on the RV, water always seems to get in those skylight/vents. Although my biggest damage is leaking side windows. They are either short term shelters, or if cheap enough, BTN shelters. Nothing more ( PS-my 90's deluxe model RV always leaks somewhere. My 80's low end unit never has-knock on wood! )

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    4. re:
      RV integrated-structure

      Just north of Eugene Oregon is Coburg, former-home to BillionBuxBus converters such as Monaco and CountryCoach.

      The RV frames were moved around the facility by a single mid-range forklift; the droop on a forty-footer exceeds five feet. The weight of an RV frame? A few empty soda-pop cans and a mummified raccoon balances that scale nicely.

      Here is the picture:
      I stand next to the frame.
      The forklift raises it even with my chin.
      Frequent sparks from dragging tips delight the drunk tards to no end.

      At Eugene's Copart vehicle auction 'salvage pool', a BillionBuxBus requires two massive forklifts to move. It's not the weight == although they can go >40,000# == a burn or wreck or roll eliminates any structural integrity in the walls and roof.

      At the salvage pool, I climbed around a BillionBuxBus after the driver maneuvered across a parking-lot parking-space concrete anti-go-past, about 6" high and 4' long. The walls and roof were accordions... but the 14,386c.f. side-by-side triple-size fridge-freezer water-fountain with space for decades of left-overs? That looked brand-spanking new.

      One of my hobbies is walking wrecking yards. In addition to Copart, Eugene has Anderson heavy-truck dismantling. The difference between any RV of any MSRP and any semi of any vintage boggles my mind. Every semi has tons of recyclable parts; every RV has a stove and maybe a genset. And maybe a pair of matching powered recliners dressed in casino fabric.

      Nothing on an RV can be recycled. They are only good for tossing in a hole to help level a property. I exaggerate. Not really.

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    5. If your enemy neighbor is stealing your firewood, get a bunch from an RV scrap yard, let him steal that and the toxic smoke should kill him. See? Everything has a use.:) But, seriously, thanks for the comments. Folks need to know what they are getting into-pros and cons.

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  4. re:
    Concrete dome

    Decades ago, I saw a system of inflating a yuge formed 'balloon', then spraying a type of concrete over it to make a structure. The source was probably MotherEarthNews.

    I still think this's a good idea for a stand-still home or business.

    However, how many folks are following the FREE advice puppy-milled over at ,Rawles,? "Stock your larder with tons of redundancies. Five tons is three tons is none tons is tons of 'you are toast'."? I have no problem with advertising revenue, except if the products / services violate recognized reality. Go other James, go!

    Talk about 'Chinese crap assembled by drunk tards'! [That delightful phrase works for advice as well as physical possessions.]

    Locked into defending a fixed location is... well, the definition of 'insane' in expecting different results from identical acts.

    It could work. And I could suddenly be 24 again and irresistibly-yummy to the folks of my chosen potential bedmates. And every body all agrees sharing me is so much much better, and we all live lustily ever after.

    Bison, as I understand your recent posts, you list two choices:
    Get tied to Real Estate with a house, or
    Get partially-tied to Read Estate with an RV or mobile home.

    I suggest you might want to investigate living on a boat. Oh, I can hear the scoffs from here. But, wait, there's more!

    An aspect of Normalcy Bias requires working within limited constructs while hoping to achieve unlimited change. Yes, change only happens after one individual creates one idea, then experiments with that idea.

    Do a simple comparison:
    *** Sea Gypsy Tribes versus Yellowstone super-duper volcano.
    *** The much-touted Powers That Be versus self-reliance.
    *** Drought famine pestilence versus bountiful abundance from the sea and shores.
    *** Pirates? Whack 'em, take their stuff. (not intended as advice, for amusement purposes only)
    *** Meddlesome bureaucrats? Permanent Travelers, Permanent Vacation.
    *** Chaos? Disorder? Anarchy? Yes! A double helping! Sign me up!

    The founders' Declaration Of Independence parchments we all revere... is this still achievable? Is it merely a footnote in a textbook at a government agents' school? Operated by the government agents for the benefit of government agents?

    I don't have answers to "life's persistent questions". I am merely a humble investigator with insatiable curiosity.

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    Replies
    1. I have no problem agreeing with "boat BOV" advice. It has a lot going for it. One just needs caution discounting by a bit the optimism, and inserting some healthy pessimism. For instance "bountiful" may no longer be a given. Overfishing, Fukishima, etc. Research some of the massive carcass wash-ups on the Cali coast. That sort of thing. Just like with relocating on land, beware of advice that is decades old.

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    2. "...living on a boat..."
      ========================

      Yes, nothing like suspending your whole life over top of a hostile environment whose sole existence is to kill you. There's a reason we have legs absent flippers on the ends.

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    3. I suppose in this case you are rolling the dice with Jaws, rather than zombies. Six of one, half dozen of the other?

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  5. Merry Christmas from down under fellow minions.

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    1. Don't forget Happy Festivus. There's going to be some serious Airing Of Grievances around here! :)

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    2. Hey Dingo, cause you guys are "down under" do you hang the christmas tree from the ceiling and therefore put the presents on top of the tree? I always wondered that. LOL

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    3. Speaking of RV roofs leaking. Why can't you treat the roof like the hull of a boat? Sandblast the whole roof with crushed walnut shells, the apply the resin and cloth as if to a boat hull? I helped someone do a home made wood boat a long time ago and he ran the resin and cloth way up of the sides of the deck and down into the inside maybe 6". His point was to not let the water have any place to intrude. On the RV the resin/cloth could be run down the walls maybe 6" or a foot so there is no way water could ever get to the roof. As far as vent openings go, remove the vent and cover the opening with the resin/cloth and after it cures cut an X in the middle and reinstall the vent with new silicone gasjket material. Same with the windows. Boats is waterproof, I'd think an RV could be too.

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    4. An RV is "frugal proof" only anymore, if you don't get an old one. My guess on quality is that rich people buy boats but never RV's. Build the boats proper so your luxury crows is satisfied. And screw over the guy who worked his whole life because he is a one time customer. Of course, I'm bitter about classism so just ignore me on this holiday.

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  6. You can often find older mobile homes for the price of hauling them off, or not much more than that. But you have to be careful, because in many areas, mobiles older than 10 years are not permit-able (They certainly are not in Commiefornia, but I have a feeling that it’s not only Commiefornia).

    I had some leaks in the roof of my old RV. I got some of that leak stopper, along with some of the fabric that they sell to be used with it, and I haven’t had a leak since. It’s kind of a bitch to use though, because as you apply it, it pulls it up from surrounding areas (hard to explain, but it’s a little tricky to use, but not too bad).

    https://www.amazon.com/Leak-Stopper-Rubberized-Exterior-Interior/dp/B002MBT1AK

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    1. I've seen those free mobile homes on craigslist. Priced axles, hubs, brakes, wheels and tires lately? I have, for a trailer I was going to build last year. I ended up buying a whole trailer for a little more than those parts. Those parts I mentioned are usually shot on those free mobile homes. It may need to be registered too before it can get on the road. Everything is getting way too expensive for the average person. Before too long all anyone will be able to do is blob out on the couch and watch the toob and wait for that gov't check.

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    2. My state sells two week moving permits, for those unregistered "permanent park" vehicles. I don't know if that applies to mobiles, but I would imagine they do.

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  7. Replies
    1. Sorry about that. I guess I didn’t even look at the price prior to posting that link. But yes, something is not right there. I paid closer to what it costs in the link below, but it wasn’t even that much; say around $10. My guess is that it is no longer being produced, and in typical unethical fashion, some A-hole Amazon vendor decided to jack the price up to hurricane disaster prices. Which kind of surprises me, because it’s not like it’s a unique solution to a specific problem. Bastards!

      https://www.amazon.com/Gardner-Gibson-29OZ-CLR-Leak-Stopper/dp/B000W67GQ8/ref=sr_1_3?ie=UTF8&qid=1545696989&sr=8-3&keywords=leak+stopper

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    2. On the other hand, if you were silly enough to buy it at that price...:)

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  8. 1. Merry Christmas.
    2. Our house has, over the last 10 years, decreased in likely sale price. Thankfully, it didn't cost that much in the first place. Mayberry is the cheapest place to live, but finding good jobs is hard . . .

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    1. Sad that you must live in the hood to find a job. DeplorableLand is much better.

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    2. Oh, no! I live in Mayberry, Deplorable Central. We don't lock our cars, and only lock the front door when we remember to. If you dropped a $20, a kid who saw you drop it would chase after you to give it back (this happened to me).

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  9. Link for the boss

    https://www.youtube.com/watch?v=cRpGtpKXYQU

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  10. Ah, me likely Enfield Porn. Thank you.

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  11. "If your enemy neighbor is stealing your firewood, get a bunch from an RV scrap yard, let him steal that and the toxic smoke should kill him. See? Everything has a use.:)"



    Funny story. When I visited the ghost town of Bodie near Mono Lake (Clint Eastwood’s movie, high plains drifter was filmed by Mono Lake) there was a volunteer guide, and he told a story. Being high desert, it would get very cold there, and the towns residents brought in firewood from Yosemite, across barges over Mono Lake. So firewood theft would occur on occasion. One town resident got so fed up from the thefts, that he either found, or hollowed out a log, and filled it with gun powder. Later that day he heard an explosion, and looked out and saw the chimney and roof of one of his neighbors homes blown off :D

    Also knew a guy in the military whose cigarettes were being stolen. He did the same thing as the log guy above, and the cigarette theft stopped. And that my friends is why you should never put another man’s fag in your mouth :D

    Knew a firemen that used to make a protein shake to bring to work everyday. Well, some fat guy that worked there would drink the shake when he wasn’t around. So the next day, he made the shake and took a picture of it with his wang dipped in it. Later that same day, he tossed the photo out on the lunch table so that the fat dude could see it, and the fat dude barfed all over the table :D

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  12. re:
    Leaks

    I use rattle-can seam-sealer. "As seen on TV!"

    I cut a section of aluminum window-screen to bridge the gap. I lay a first coat, press in the screen, then spray to embed and cover.

    But, of course, holes in roofs == RV air conditioners! == are a spectacularly-bad idea, and worse in practice. Weight conjoined with gravity always deforms the best of intentions.

    Good grief. The RV forum IRV2 has many many how-to segments of repairing / replacing rotted roof frames. Why bother... every RV is disposable.

    Repairing an RV is the equivalent of wrapping duct-tape around the Cheerios cereal box after the cats use it for 'spray' practice. And you get approximately the same longevity. RV structural integrity never existed in the first place, so if this's your goal, add another layer of duct-tape. I'm kidding; for creating rigidity in an RV, add popsicle-sticks.

    Or maybe move the whole shooting-match into a massive freezer. Then, after the soaked ceiling walls floor freeze solid, you have your rigidity. [dusts hands in satisfaction]

    Wood boats? Cored fiberglass boats? Carbon fiber boats? Those boat forums also share many many segments about repair. Water intrusion is a given, unless you are in Elko east of the Sahara mountains. Or the Sierra desert in Libya.

    But where is the fun in that!

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    1. I had a good experience with a 70's trailer when I lived on the west coast ( lots and lots of rain ). My 60's cab-over is still standing although with a lot of damage. I really think when it was made determines quality. Or I should say, those FEW that retained quality before they all went to crap.

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  13. Thin-skin fiberglas trailer like Casita and Burro seem light AND sturdy,like an eggshell, until you see one that had a tree fall through it. No leaks until the tree. Everyone thinking of buying a new-anything-with-wheels needs to go to where old broken ones are scrapped/stripped. Your estimate of value will go from "about $4500 used" to "About $300 used, if I can inspect it really well", otherwise a tarp seems like good value.
    +1 on commercial vehicles: made of good stuff to last. RV's are the very worst stuff, 4x as bad as any boat thing, assembled by stoned morons using an air-powered staple gun instead of a ruler to make parts match.
    Disagree that there are no salvageable parts in an RV/trailer. Little sinks, small water heater, small propane furnace, small refer that can run on 12v or 120v or propane, small 4burner stove/oven combo, propane tanks, water tanks, grey & black water tanks,battery, light fixtures, windows, hatches, doors (inside and outside). The frame and wheels are usually okay.

    pdxr13

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  14. If all else fails, as bad as RV's are, if affordable at least they are far better than living in a tent.

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    Replies
    1. Hexayurt with some trailer bits like windows. Very cheap, almost free except for land, and if a person wants to pour a concrete basement-foundation.

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