Keep as Rentals for Sell Owner Finance - Mobile Homes on Land

[Dan Galvan]

Hello, What would you do?

I have a rural 1.5 acre lot that I divided into 3 lots about 9 years ago.  

Lot 1: 2000 3/2 Mobile Home: Monthly Rent $1000

Lot 2: 2007 2/1 Mobile Home: Monthly Rent $875

Lot 3: Vacant Lot: Monthly Rent $250

Total Rent: $2,215 minus Taxes/Insurance of ~$200 Monthly or $2400 Annually = ~$2015 Monthly Profit/Cash Flow.

Total Initial Investment: ~$75K

Situation: I own this property free/clear but I have been considering selling it to invest into a vacant 7 acre riverfront property that I also own free/clear.  I'm thinking about turning that riverfront property into an RV Park or Cabin/Yurt Air BND Getaway.  A neighbor to the subject 1.5 acre property wants to buy it and I'm considering an owner finance deal.  My issue is that I'm having a problem valuating the property.  The 2 mobile home are older, but in great condition, and not in need of any repairs.  These homes are never vacant and there is a high demand for rentals in this area.  I do own 4 other rentals in this area free/clear and my goal is cashflow, but feel I can grow my cashflow by reinvesting into my 7 acre property.

1. Would you keep the property and just continue to rent it and enjoy the cashflow?

2. How would I determine the value of this property if I decided to owner finance it to a neighbor?

Any other thoughts?

Thank you in advance,

Dan