Need Advice About Selling Or Holding
In 1968 I purchased 5 acres from my parents, moved away and gradually (accidently) got into the rental business. A couple years ago a RE agent approached me and got me excited about selling at $169,000 (enough to come out with a little retirement money after fees, commission and lots of capital gains since we did so much work ourselves). I have two 14X70s mobile homes with 8x8 entries on front and rear doors, above average condition on the inside(one is 1970 3 bdrm 2 bath and the other is 1978 2 bdrm 1 bath and both have metal buiding two(plus)car garages with walk in and overhead doors with openers). The five acres is located about 20 miles east of Colorado Springs on paved highway near Ellicott and has lots of trees and shrubs. After listing with the realtor, she said there was no way I could sell the property for more than $150,00 and in the meantime my tenants got mad and moved out. Then the realtor said I won't be able to sell because lenders won't loan on mobiles not on a permanent foundation, and these are only tied down. I guess it was too much trouble to tell me this before I listed it and lost my tenants. So I decided to keep the rentals for about ten years until I retire then try to sell again and decide then on foundations or not. I hate to put foundations under homes that small and old and I'm not sure what complications it might cause. Also last year, since I live 110 miles away I had an emergency generating system(required ALL new electric service to homes and garages with seperate meters and sub-breaker boxes) installed which I never would have done that if I'd known it was going to cost me $25,000 before it was finished. But it will give me piece of mind when the Colorado blizzards start! If power is out for more than a couple days and I can't go there and keep things from freezing, I would have a ton of damage and loss of tenants. Anyway, I saw this forum and thought I'd see what good advice I may get on this. Rent now coming in is $575 for one and $600 for the other for a total gross of $1175. They pay utilities.
Thanks for any advice or ideas!
offer the tenants lease purchase.. collect a down raise the monlthy... research that avenue maybe?
I agree to lease purchase or offer financing and sell your note at closing. Your best bet is to sell it to the current tenants if that isnt an option be willing to take a secondary loan position so another investor can get it.
Good Luck,
Kyle