What to do now

[Russ Mclaughlin]

Hi everyone, i am looking for peoples .02 cents here.

The property i currently have is just shy of an acre.

On one half of the property there is a new house just completed. It is a 3bd 3 bath 2 story home with a 3 bay garage on the lower floor. Roughly 2200 sq feet.

On the other half of the property there is an older 3 bd 1 bath house, circa 1970. Along with a Small 500 Sq foot bachelor cabin. Also on that side of the property is a 400sq foot shop.

Now my question is should i subdivide the two property's and sell off the older side and i would keep and live in the newer house. Or should i hold onto it for 5 years and at that time look at the options again.

Here are my cost break downs.

Purchased for 452,000 with 40,000 down in november of last year.

5 year fixed rate mortgage at 3.09%

We rent out the older home for 1150, and usually rent out the cabin and shop together for 500.

Both sides of the property have their own drive ways, all the homes have their own septic, and power.

The new house gets water from a well that is on the new side of the property.

The older homes get water from a local water company, or they are plumbed into the well.

Subdivision cost would not be astronomically high, due to most of the connections being done, 10,000 to 20,000 budget for the subdivision.

Property is valued at 515,000, if i kept it and put some work into the older homes and did some landscaping a few separate realtor's said we would be in the low 600,000 mark.

Would you keep the whole property and after five years move out of the new house and rent it out with the others, and use the excess to help cover the cost of a new property.

Or get rid of half of it right away, deal with the mortgage cost's of refinancing so early in the mortgage. IF this route was gone down we would sell the older side of the property in the 230,000 range. Leaving roughly 180,000 mortgage on the new side of the property with a possible value of 300-325,00.

I guess its a long term gain or short term gain.

Me im 29 years old, the town has a low vacancy rate around 1 0r 2 percent and i plan to be in the area for at least five years.

What do you think?

Thanks

Russ