What would you do with this property

Question

I currently have a property on a c/d area (I think). The property has alot going for it like it have un obstructed views of pikes peak and the property across the road backs national forest. The down side is it has a dilapidated double wide trailer (on a cinder block foundation) and its not in the best trailer park subdivision. I currently use the property to store a car and other property. There is a guy on the street my place is on that is willing to tear down the house and everything else for the scrap, I just have to pay for the dumpster. It will take him about a year or so to tear it down.

My options right now that I see are

1 Sell it as it is for about 35k

2 Rip down house and sell the property for about 45k

3 Rip down the house and put a used trailer and rent it Cost about 50k rent 750 or so not really sure

4 Rip down the house and put a used trailer and sell it Cost about 50k Sell price 100-125

5 Keep it as a place to escape from time to time

Jake Holmes · Answer

@Aaron Vergason Right now, no, But I plan on working on saving and building my credit so that next year I can get a loan.

Chris Carollo · Answer

A year to tear it down? That alone would lead me to any of the other options.

Jason Anderson · Answer

@Jake Holmes You could clear the lot and set it up for 1 or 2 rv sItes. Would be a minimal investment with very low maintenance.

Account Closed · Answer

the year to take it down could lead to violations for the trash etc. if you own it free and clear and it has not appreciated to where you think it will go yet . get someone else to take it for scrap and pay you for it wait for things to get better. you are holding it for a reason

Account Closed · Answer

option 1 is ok sell the trailer and contents to a stranger who will remove it and pay you for it. and rent out the lot to someone who has a trailer looking for a space . i met someone in tx who buys distressed lots at discount and then removes the old trailer and rents the lot out to someone who brings there own trailer. less stress

Jake Holmes · Answer

The past 2 tenants I have done a work for rent agreement with, NOTHING was done. While I learned alot it left the trailer unlivable. The trailer needs a complete rehab, It needed new shingles and because it was never done and my inability to get up there in the winter after eviction, there are holes in the roof, insulation falling through the ceiling ect. When I talk about no expenses I was talking outside of taxs and such so below 2k a year. The trailer is in an area that has been dubbed Tweeker Acres so no, no development is headed in its direction. The numbers to get a trailer up there are estimates. I really dont know how much it would be. There is currently a double wide up there that I would like to stick to the same size if I replace it.

Gerald Demers · Answer

I don't know the area but is the lot in the path of progress? Will it be worth more in the future? If yes, for about 15K you can pull the old trailer off and replace it with a used one and rent it out (you stated it had sentimental value so you would still own it). You said it's dilapidated...how dilapidated? Can you put someone in it that wants to fix it up and live in it. You can give him the trailer and he rents the lot from you. This way you still own the land but have no tenant headaches. If it doesn't work out, you can tell him to move and take the trailer with him (which he won't). You are back to where you started but had some rental income from when he was paying. The upside is that he fixes it up and lives there for a long time. Since you own the lot, you can control what he/she does with the lot such as demanding it is maintained. Make sure your agreement/contract with him spells out how he is to care for the lot. Gerald Demers

Karen O. · Answer

How are there no expenses? Not even taxes and insurance?Besides that, given the negative family history, I'd go for option 1 or 2. 2 if the removal can happen in less than a year and the taxes and insurance is less than $2k. Than use the $ for something else.

Aaron Vergason · Answer

@Jake Holmes do you have the 50k needed for option 3?That would get you started on the path of buy and hold. Could you get a private loan from family or friends?If not I'd get the 35k and do all the fancy things people do to boost credit like put some of that 35k into a bank and get a cash backed credit card to use and pay it off like the credit experts tell you to do.Also if you sell find out from a cpa if you need to save any of the money you get for taxes.

Jake Holmes · Answer

@Aaron Vergason I dont know. Im still learning. I know I would like to do buy and hold, Residential and maybe commercial (strip mall). beyond that Im not sure. Right now I have to work on my credit as its in the gutter because of medical bills so anything I would do wouldnt be right now