Rural Investing Leverage Analysis

[Aaron Carter]

Looking for some guidance. I am 26, in a town of approximately 19,000, currently have one duplex as well as my primary residence with a mother-in-law detached apartment that I rent out. For a total of three rental units all of which I completely renovated myself. The cash flow on these properties completely cover the mortgage and utilities on my primary residence. My wife stays home with our 9 month old daughter so we rely solely on my income as an RN for all other expenses.

I spoke with my banker and I have approximately $35,000 that I can pull out of HELOC while still remaining under the 80% LTV for all of my properties. I have no other debt than my real estate investments. However, I have very little cash on hand.

I have been tossing around the idea of doing a flip in my area to provide for an initial capital boost, as I have done very well in regards to the ARV of my two previous properties.

I have a lead for purchasing a 3/2 manufactured home built in 2007 very close to where I live for $60,000 that is not currently listed, comps in the area are between $80,000 and $95,000. Taxes are $950 a year, I believe that I could rent it out for $875-$950 month. However, this would tie up most of my HELOC and I have no experience with manufactured homes.

I am concerned with the amount of leverage that I am using at this time but also don't want to feel stagnant. Should I flip, buy and hold the 3/2, or wait approximately one year for more cash reserves and find a better deal?