Mobile home purchases in Eastern NC

[Shane Waller]

I have two doublewide mobile homes purchased one for 24k rent it for 650. Have been for three years . Tax value says 80k. Thought about selling in the near future to purchase some others? Should I hold or sale? I also have anther that I rent for 650 with 450 mortgage. Same location as other both have there own land 1 acre each. ?? Just wanting to try something different getting stirred up a little lately.

[Bob E.]

Why would you be concerned about writing the note on it but OK with renting them?  If you write the note correctly you can always resell it but it gets you out of taxes and maintenance.

Another option might be to borrow a small amount against the one you won free and clear and use that to buy a third, if you have enough cash to get that one free and clear then borrow against that to buy the forth etc. 

My advisee would be to, if you can, keep your loan duration at 10 years and under so you are building equity faster, then in 10 years you start to get the full CF again and that can be a really nice thing when your tenants buy the property outright for you.  (a 35k loan at 5% for 10 years will run you $371.23 a month 25k loan would be $265.16)