Stay With Mobile Home or sell an move Up?

Question

Is it better to get out of the mobile and move into a more secure investment or should I stay with the mobile that provides a nice return on investment?

If I sell, I could use that money to buy a home in a more rural area of Florida. I can buy a home for 140K, put 40K down, have a 100K mortgage for about $ 730 a month and rent it out for about $ 1K.

I have the opportunity to profit about 49K If I sell.

My mobile in Fort Lauderdale, Fl. I also own the land. Real estate in Ft. Lauderdale is expensive and the area is well developed.

I received an offer for a cash deal for 60K.

Mobiles in Florida are hard to finance and insure.

I own a mobile home investment. Bought it for 52K and owe 11K on it. I get 1K a month in rent and pay $ 300 a month for the mortgage. In 4 years it will be paid off free and clear.

New here and I come with a dilemma.

Thomas S. · Answer

The problem with the mobile, as you state, you can not get financing to pull out your dead equity. You have about 40K that has died and gone to hell.

For that reason I would sell since it is the only way you will ever be able to improve your investments.

If you can buy a home for $140K and only put the absolute minimum down you will maximise your returns. 20% down is only 28K. The rest of your cash is reserves until you save up enough for another property.

I would jump at the 60K.