Rent, Owner Finance or Sell

4 Replies

Hello, picked up a nice single wide mobile home on almost two acres for $35K cash a couple of

months ago and after ~$5K in updating and minor repairs, I'm in at about ~$40K.  I could sell for $95-$110K and double my money; however, my main goal is cash flow and I'm really thinking of adding this property to my rentals, but also considering owner financing.  Thoughts??

In my opinion owner financing is a good idea for tax purposes and that will easily double or even triple your money depending on the interest you charge. Also, that takes out the PM experience.

@Dan Galvan what are your goals? If your goal is a steady stream of income, then renting or maybe owner financing would be worth it. What is your best case scenario for owner financing - 5% on your money? Think about what your goals are and go from there. If you could sell it, take that money and reinvest in something larger that could give you a 10% return, I would suggest doing that. 

I might be tempted to seller finance that one. For me, I buy for appreciation and cash flow. Since this is a manufactured home, you're not likely going to get the long term appreciation, you could get cash flow via seller financing and avoid some of the headache. If you need the money and are okay with whatever tax impact of selling, you could, but you'd want to be sure you could replace it with an equally cash flowing asset.