Advice for next step

[Michael Harris]

I got into a mobile home on 3 acres in suburb of Tulsa ok, the owner quit claimed deed to me and we signed a contract that I would rehab and sell at that time he gets $60,000. I am almost done with the rehab and I am considering a few options.

The comps on the property have been around 190k but I feel this property isn’t quite as good as the comps I could find so I’m running with the assumption of getting about 175k.

1. Sell house and buy a cheaper house all cash avoid the current high interest rate. Down side the houses in this price range are older and possibly not in best neighborhoods, more repairs possibly harder to find good renters.

2. Use proceeds as down payment on higher quality house maybe even new house, less repairs, can look I. Better areas. Will have high interest mortgage.

3. Refinance and rent the mobile out, already have tenants interested. Use refinance fund payout person I bought from and do either 1 or 2 above.

[Andrew Bosco]

I prefer holding a rental to mitigate capital gains taxes after a few years of holding. Just remember selling it quickly means you pay taxes on the property. Just ensure you get a good quality tenant in the rental. 

[Brendan Harrison]

Congrats on almost completing the rehab! Here’s a quick breakdown of your options:

Option 1: Sell and Buy Cheaper House with Cash

Pros: No mortgage, no interest payments.

Cons: Older homes, more repairs, possibly worse neighborhoods.

Option 2:Use Proceeds as Down Payment on Better House

Pros: Newer, fewer repairs, better neighborhoods.

Cons: High mortgage interest rates, higher monthly payments.

Option 3: Refinance and Rent Out Mobile Home

Pros: Rental income, keep property, can still buy another home.

Cons:Landlord responsibilities, high refinance interest rates, market fluctuations.

Consider market trends, rental demand, and your financial goals. Good Luck!

[Rachel H.]

@Michael Harris It would depend on what your goals are now, either cash flow through rentals or the immediate cash from the sale. 

Regarding renting the mobile home, it depends on your comfort level with the types of clientele the home attracts. If you get quality tenants who fit your criteria (it's different for everyone), it may be worth it to rent the home. If not, you may be better off selling and purchasing something else. 

Personally, I found out the hard way that it's the neighborhood that attracts a certain type of clientele. No matter what you do, you can't do anything to change that. So when buying and holding, you really have to be comfortable with the type of clientele the neighborhood attracts. Otherwise, it's best to sell and find another neighborhood that works with your personality. 

Hope that helps!