Sell or rent trailer house

[Ben D.]

Hey everyone. I recently bought a foreclosed mobile home for $27000 with .5 acres of land. I leveraged a line of credit paying about 7 or 8 percent interest to buy the whole thing. The question is whether I want to do a quick sell and get 23k after taxes and paying back the line of credit. 

Or keep it and rent for about 700-800 monthly after property management fees. Renting it will take about 8 years to repay the line of credit and gain what i would earn selling right now.

Selling seems the obvious answer but I appreciate any feedback.

[Marc C.]

Here is one way I'm proposing to do financing for homes. I am waiting for the resident experts to come in and crap all over it. 

1. I set up a financing company, "Joe's Mortgage, LLC."
2. I fund the LLC/lender with the amount needed for the loan.
3. My other LLC, "Joe's Mobiles, LLC," buys a home in zip code 88888
4. The LLC/lender approaches my favorite mortgage broker, Mrs. Smith, with a special offer: "We will finance used mobile home transactions in zip code 88888 at 9% with 10% down."
5. I advertise for a buyer for my home, I say, "financing available through third party," but I don't disclose the terms. Maybe I disclose a range: "Purchase price $30,000. Terms: 8-12% interest, down payment 5-10%, payment $500-$800, depending on buyer credit."
6. I find an interested buyer, and I send them to Mrs. Smith.
7. Mrs. Smith sits down with Mr. and Mrs. Buyer, checks their credit and income, etc., then says, "I have only one lender who will loan on used mobiles in zip code 88888. Let me check with them."
8. Mrs. Smith sends a proposal to the LLC/lender: "We have a buyer who has qualified for a loan if the monthly payment is $500 per month." She forwards the buyer's qualification package to the LLC/lender.
9. The LLC/lender agrees to do the loan.
10. The purchase is closed, now with a 3rd party lender, NOT the seller acting as lender.

I just don't know how this could be "seller" financing. Different entities, perhaps with different partners in them.