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Updated over 7 years ago,
What to sell when you have to sell something
Hi all, I have to raise enough money to fund a lawsuit. The lawsuit isn't a slam dunk, but if it works out, it would reverse a big loss caused by a forgery done by a real estate agent (who is no longer in real estate, thank goodness). Because it isn't a slam dunk, it's not the kind of thing a litigation lender would want to invest in, so I'm assuming I'm on my own.
There are two properties I can consider parting with, and they're very different. I think they'd take about the same length of time to sell, so that's not a factor.
One is a paid-for mobile home, nicely upgraded and maintained, on a big lot in a semi-rural area. My tenant pays the insurance and property tax and all the maintenance, so it's headache-free, but not very lucrative. My proceeds would be enough to meet my current needs.
The other is a co-owned duplex in a slowly up-and-coming part of Los Angeles, the rare duplex mainly single-family dwellings. This one is also headache-free, because my co-owner handles all the expenses. I'd be giving up $240 more in steady monthly income, but I'd net about $40K more than I would with the mobile home. I might not need it for the lawsuit, but I could pay off a tiny loan on another property with it and eliminate a $400/month loan payment 6 years early. (Or, I might need it for the lawsuit.)
The $40,000 difference in proceeds is working pretty hard for me in L.A., given that the property sends me $249 more per month than the semi-rural mobile home does. I'm inclined to sell the mobile home because of that.
On the touchy-feely level, I like the duplex and the neighborhood, whereas I wouldn't be sorry if I never saw the mobile and the town it's in again. If I had to move into one of them, I'd choose the duplex in a heartbeat. (Almost anyone would.)
Is there anything else to consider?