All Forum Posts by: Zac Starr

I know Mobile homes and based on your situation and knowing how they hold up to ware and tear I would strongly advise selling now and collect your profits.

A value of 180K with rent at $1350 is a loser long term. Get out now before the property starts to eat you alive.

Sell, pay off your bad debts, pull a HELOC on your primary and get all your cash out in the market earning it's keep. You should have about 200K to work with that should be earning you 10% all day long. Invested with minimum down multi units or a apartment complex.

Your present rental income, adjusting for expenses, is earning only slightly more than 4% on your total available equity of 200K (after paying off all bad debt).

In your situation with a house hold income of 100K you do not really need more money or the hassle of real estate. You could simply take your equity, left after paying off all debts and park it in a moderately aggressive investment fund and still earn 8% to 10% returns (over the long term).

This is it here :

6180 Chimney Dr Sun Valley Nv 89433

I listed it FSBO on Zillow and craigslist

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Originally posted by @Jeff Ronningen:

Zac,

What would Dave Ramsey say? Asking half serious, half sarcasm. Why do you have $30K credit card debt and $22K auto loan? Is $1270 a month on $180K a good return? Assuming you could net $170K on sale, your return with keeping the land/mobile home is effectively less than 10%, probably more like 7-8%. Could you send invest those funds in other rental property at higher cash-on-cash return? I don’t like the shell game with credit card debt. It works until it doesn’t, and you don’t get to decide when. Getting rid of the car loans gives you a raise each month. The other thing to consider is if you pay the stuff off, will you just run it up again? Make sure you have an airtight plan to not let that happen. It might make sense to sell, pay debts, reinvest in other property at higher return. You would increase what’s coming in each month and reduce what’s going out.

See that's what I'm thinking. If I do cash out at $170k, I could pay my 30k debt off and my two cars. That would free up a total $850/mo. Plus I wouldn't have any responsibility of being a landlord or any maintenance expenses.

If I kept the rental, I get $1270 /mo. But $1270 minus the debt payment and the car payments I'm at $420. Plus the stress of being a landlord and the expenses.

Doesn't it make sense to sell? Wouldn't I be getting more cash flow after pay the cars and debt off? Or is that not the correct way of looking at it?

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Originally posted by @Cynthia Hartley:

Hi Zach,

I presume you have a salary and your sole source of income is not the mobile home.

My first question is do you have another credit card onto which you could transfer the $30K in existing debt at 0% or even 1% or 2%. If so, I would a balance transfer and keep the mobile home and collecting rent. Setup your bank accounts so that the rent is automatically deposited to a bank account each month and the credit card is automatically paid from that bank account each month - whether the bank pays the card or the card pulls from the bank, whichever will allow you to pay more than the minimum. From the current rent set aside a certain amount each month for those capital expenditures that you mentioned - roof, water heater, furnace, AC, etc. - and put the balance, less the PM fee to the credit card. You should have the card paid off in 3 years. If you make additional payments to the card from your salary even better.

If you do not have a card to which you could transfer the $30K balance and the interest rate is going to go up into the double digits, which may make you feel uncomfortable, then sell the land and mobile home. If you sell it for $180K, you will walk away with $170K more or less (closing costs, etc.). Then pay off the $30K, which leaves you with $140K. Put away $30K in an emergency fund, which leaves you with $110K. Pay whatever amount you feel comfortable with towards the principal on your house and use the rest to invest in another property.

That said, get advice with someone who is knowledgeable about 1031 exchanges. They could give you better advice as to what to do with the $170K so that you minimize or eliminate capital gains tax.

I personally would go with option #1 as I don't believe in selling property, especially one that is generating cash flow.

Good luck. Let me know how it turns out.

Between my wife and I we make roughly 100k a year. As far as the 0% ending, it will jump up to 20%. I could balance transfer for a 3% fee onto another card at 10.99%. I could also pull 30k equity out of this property/refi and be lestvwith a second mortgage balance of 30k/4% and pay the debt off that way. I know a refi will cost money and I'm not sure this is the best option. Last option is my wife is completely debt free, she could find a credit card offer at 15mo/0% zero balance fee and transfer the balance over to that card. But we will be in the same predicament again in 15 months after the 0% ends again.

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I have a 1972 1500sq ft Mobil home on a 0.4 acre lot. I own both free and clear and am currently collecting $1350/no rent ($1270 after PM fee).

My concern is , I have a credit card that has a $30,000 balance with the 0% ending in a few months. I'd like to keep this rental for the cash flow but I'm also concerned with long term durability being the mobil is so old. It is in good shape, but things like the roof/water heater/furnace/ AC going out would be just more money added onto my credit card debt. (I don't have much savings). The market is currently on the high end right and I am entertaining selling this land/Mobil for $180,000. I purchased this Mobil/lot last year for $75,000. I also have a 2003 1300sq ft real property home (primary residence) that I owe $170,000 but it's value is $260,000. I own two cars with balances of $7000/$15,000.

My mind is spinning and which direction to take and was hoping someone could set me on the right path!

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Originally posted by @Tom Gimer:

Use a basic real estate purchase and sale agreement and add one extra section which references the mobile home conveying. I would check with your accountant regarding allocation of the purchase price between the real and personal property.

A Deed (for the land) and a Bill of Sale (for the mobile home) will be signed at closing. I agree that a title company should be able to handle this.

Would you happen to know which purchase agreement would work for me?

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Is that nessesary? I was going to sign contract agreement and then push everything over to the title company.

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I have a cash buyer for a 1972 mobil home that has not been converted to real property on a 0.4 acre piece of property. I am selling only the land and the mobil home will be included with the sale. What sales contract/agreement do I use? I am in the state of Nevada. We are not using real estate agents.

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I own a rental outright that's worth $180. I purchased it last year for $75k. I thought I would owe like $20k in capital gains bit I spoke to a CPA and was surprised it was only gonna be like $8k. I'm in the same boat as you right now.. sell or keep... I'm pretty sure I'm gonna sell and move on from being a landlord. Pay off some debt and my cars and put the rest in something that pays interest.

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Hello, first post here. I live in Nevada and I currently own a 1972 pre-HUD double wide Mobil home that is on 0.4 acres. This Mobil home is NOT on a foundation. Both Mobil home and land is owned by me free and clear. The Mobil home is currently occupied by a renter with their lease ending July 31 2018. I made the decision to sell the Mobil home and property. I did some research and found recent sold comps as well as recently listed comps. After researching a bit on this forum I decided that I felt comfortable enough to sell FSBO. So I listed my house on Zillow,Trulia and Craigslist. I've had a lot of interest and just recently someone wanting to make a offer. So here are the steps I believe that I need to take.

1. List and find buyer

2. Buyer makes offer and I accept

3.Being that buyer does not have a real estate agent, I will provide contract that buyer and I both sign with a notary.

4. Title company collects contract and $1000 escrow check from buyer and gives buyer a receipt.

5. Title company completes the rest of the transaction.

My questions are:

1. Being this is a pre-hud /no foundation Mobil home, this will a cash sale. I'm selling the land only and "throwing in" the Mobil home with the land sale. What contract do I Provide? I want to make sure im protected AFTER the transaction is complete. Do you think its a good idea to sell only the land and throw in the Mobil home for free like I'm doing?

2. Your thoughts on the steps above to compete my sale. Is this the correct procedure?

Thank you!

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All Forum Posts by: Zac Starr

Zac Starr has started 3 posts and replied 9 times.

Post: Keep Renting or cash out? HELP

Post: Keep Renting or cash out? HELP

Post: Keep Renting or cash out? HELP

Post: Keep Renting or cash out? HELP

Post: Please suggest a sales agreement

Post: Please suggest a sales agreement

Post: Please suggest a sales agreement

Post: Sell My Rental or Not?

Post: FSBO Mobil/land contract question