Refinance Old or Buy New Mobile Home

[Nandy B.]

Advice - Recommendations Option 1 or Option 2 for a mobile home.

I have a mobile was not well maintained and needs a complete remodel. 

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Option 1 - do the remodel for about $30K-$40K ( for a basic remodel ) but it has to come out of pocket right away.

PRO - $40K and I am done.

CON - take 3-6 months, have to spend money on hotels when i am in town to oversee glamping resort project, it's remodeling an old house so some of the things will re-appear as issues in a few years.

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Option 2 - sell this one for about 10K-15K and use the money as down payment to buy a new one for about 150K pay. The payment will be about $1500 and I can also put it on Airbnb to offset some of that liability ( can average about $2000/month with 40% occupancy).

PRO - i have a nice house right away, I can enjoy it, I don't have to worry about damages in the near future.

CON - i add more debt to my portfolio, in the end i pay over 300k principle and interest included.

CONTEXT

I am investing out of CA where I live. I got a great deal on a 24 acre farm (15% below asking price) that I'll be land hacking over 3 years into a homestead with an orchard for jams, jellies, and marmalade business and a glamping resort with tiny houses and glamping tents. It's zoned ag rural giving me flexibility on what I can build on my property.

For less than $500K I am getting the following 

• 2 Houses
• --3/2 mobile home - my family home 
• -- 4/2 Metal home - Airbnb 1: similar properties average $6K/month. 
•            2 separate garages ( one is ready to convert to extra master - has windows, insulation, and ready for paint)
• 1 Shop - 1,200 sq ft metal building with electric, plumbing, and water -
• 1 Shed with toilet - wellness spa ( I am licensed esthetician/massage therapy)
• 3 - 600 sq. ft. Dog Kennel Structures - convert to tiny houses for Airbnb 2, 3, 4 
• 2 Foundation Slabs for 2 more tiny homes
• Land
  
• • 24 acres - wooded - for 6-10 glamping tents
  • Pond
  • Fruit and Pecan Trees
• Location
  • Proximity to Parks and Lakes: 20-60 min away from 5 large attractions and visitors hot spots
  • Easy access Quiet/Serene: Close to main road but not on the main road

[Rachel H.]

@Nandy B. Regarding the mobile home, if the home is a complete remodel it may require more work than you're willing to do. When remodeling homes, a lot of times there are unknown issues uncovered during the process which was not known beforehand. It's best to figure these potential costs in, if going that route. 

Buying new is also an option. Though, you will need to do your due diligence when it comes to manufacturers and getting the home installed. I've heard a lot of issues come up with homeowners buying new mobile homes including the installation and condition of the homes when moved. Just something to keep in mind. 

When it comes down to it, it's best to go with the route you feel most comfortable with. If you're open to doing a complete remodel with the mobile home, you can go that route. Another option is to buy a slightly used mobile home and move it to your land. 

Hope that helps!