Updated 7 days ago on . Most recent reply
Advice on current setup
Hello folks! I am completely new to rentals and do not have any role models to look to for guidance. I've watched quite a few videos and understand the basics, but I'd love to hear some advice on how to make the best decision here. I own a 20 acre property just south of Huntsville, Alabama. In the photo, you can see the house I just built that we live in on the northwest corner. Going down south from there, is my old house I have tenants moving into next month. The mortgage rate is $881 a month and it is being rented for $1350 as a 3 bed 1 bath. My ultimate question is I have another acre of road frontage that can be utilized. I have plenty of equity in the new and old house I could use to initiate the next phase, but I'm not sure what to do. I owner built my current home and am not too keen on building something right after I finished, but considered the idea of maybe two used trailers to start cash flowing? The land is mortgaged to the house so attaining a partial release for the one acre to mortgage a new build would be difficult. Because of that I was considering a couple of used trailers or tiny homes since i could fund it completely with equity or a heloc. If all of this sounds crazy or a terrible idea, I am also open to criticism! haha. I've attached a map to help. Maybe down the road when the land is paid off sell the trailers and throw up a duplex or two?
New house's value is 525k with a 325k mortgage at 6.6%
Old house's value is 323k with a 130k mortgage at 3.125% (I miss those days)
