Keep for cash flow or flip?? Thoughts??

5 Replies

Hi all,

I'm a bit on the fence about a decision that needs to be made and would just like to hear some thoughts from the collective BP wisdom. For some context, my goal is to accumulate SFH to buy and hold long term. This is my first mobile home.

I rehabbed a mobile home (dble wide/manufactured home depending on where you're from) that I initially had been planning on keeping and renting just for the cash flow. It would cash flow very well. (potential 500/month) According to my realtor, it would also sell very well and I could really use the capitol. I'm getting hung up on the questions...do I keep it because it cash flows well and it fits my goals for buy and hold? or do i take the money and run because it's cash in hand now and I can't expect any appreciation on it? And go for a better property? Are there other angles I haven't thought of?

@Jeremy M.

Depends on what your plan is. Do you want to cash out and move to a bigger property?

Or get cash flow for several years? 

Having cash flow that covers your monthly overhead, makes you somewhat financially independent = don't HAVE to work for income.

So again, it depends on what your plan is.

Everyone has valid points, but does this Mobile home fit your Goal? 

My Primary Goal is Small Apartments 12-24 Units with a per Door/Unit Minimum I want, I doubt I would look at Single Family, Multi Family or anything lower than 12 Units for my Primary Goal unless it Cash Flows very well. Single Families could flip then use that Capital for my Primary Goal.

Will you be able to sell the Mobile Home in the future for the Price your looking at now for it?

Thanks guys, for the input. All are valid points. I've made the decision to see if I can meet my goal on net profit with the interested buyers if I sell. If not, I'll just keep it.