Sell or hold when trying to grow?

Question

Hello, have a doublewide house that is paid off currently worth $230k and renting at $1600 per month. The cash flow is nice but it is difficult to find a lender that will do a HELOC or even conventional financing to grow.

I’m considerIng selling this property and seeking opinions on how to best use the cash.
I could purchase a duplex for ~$250k and $1000 per side increasing my gross revenue by $400. Then HELOC this property.

There is 3 duplex’s for sale at $235k I could put 20% down on each and buy all three.

Considering buying land in town and building 2 modular duplexes or triplexes to avoid sprinkler systems. Most expensive option but should create the most equity.

Or purchase a larger multifamily ~$1M

Not considering BRRR at this time.

William Thompson · Answer

Congrats on having that doublewide paid off—that’s a great position to be in. The challenge you’re running into with financing is common; lenders are often hesitant on manufactured homes. Selling and redeploying the equity could give you much more flexibility.

The duplex route can make sense, especially since you’d be trading into properties that appraise more traditionally and allow for HELOCs or cash-out refis down the road. On the other hand, going bigger into a multifamily or new construction can create more equity and scalability, but you’ll want to weigh the management intensity and capital outlay against your current goals.

A lot of investors I work with find success by asking: Do I want more immediate cash flow with flexibility (duplexes), or long-term appreciation/equity growth (larger multifamily or builds)? Lining that up with your financing options and risk tolerance is where the right answer usually becomes clear.

Phoenix Mao · Answer

In similar boat, would be curious about other's recommendation too!