Any rental experts?

[Buckmaster7600]

When I was building my house a few years ago I bought a mobile home on 1/2 acre to live in while building. The home was not livable when I bought it so I got the lot for very cheap. I gutted the place  to the studs and rebuilt everything and added 2 additions to make it livable for my daughter and I. 
 

I have been renting it for 2 years now, I’ve had 2 tenants and both have been great. I’m making 850$ a month after expenses plus another  200$ for a storage barn that is on the property that I rent separately. 
 

The current renter of the barn made me a cash offer to buy the property. The offer is definitely fair and more than I would have asked if I put it on the market today. 
 

I haven’t thought about selling it and really don’t need the money right now and I like the extra monthly income, but the other part I’m thinking is next time something goes wrong I’m going to be kicking myself for not dumping it when I had the chance. 
 

Anyone else have a rental property and any advice?

[2BuckBizCT]

I wouldn’t want to be that kind of landlord. I say take the cash and invest elsewhere to make your monthly income

[mowin]

What's your gut feeling?  Go with that.  

Don't think there's a downside either way. 

[Buckmaster7600]

The other thing I’ll add is that the property borders my family farm. The lot doesn’t have any sentimental value to me but it’s close to home and part of me wants to keep it in case my daughter ever wants to live here. I have other land that could be subdivided to build on later but this would be the easiest option if it ever happened.

[ZAG]

7 minutes ago, Buckmaster7600 said:

The other thing I’ll add is that the property borders my family farm. The lot doesn’t have any sentimental value to me but it’s close to home and part of me wants to keep it in case my daughter ever wants to live here. I have other land that could be subdivided to build on later but this would be the easiest option if it ever happened.

Sounds like a keeper!

[IM Hooked]

Depends on how much you will make on the sale, and how old you are. Don’t forget about capital gains taxes when you sell. If you are still young I would take the monthly rent,plus it’s close to your property.

[mowin]

24 minutes ago, Buckmaster7600 said:

The other thing I’ll add is that the property borders my family farm. The lot doesn’t have any sentimental value to me but it’s close to home and part of me wants to keep it in case my daughter ever wants to live here. I have other land that could be subdivided to build on later but this would be the easiest option if it ever happened.

To me, that makes all the difference. Keep it.  Land isn't getting cheaper.

How old is the mobile home, and is it in good condition?  

[Buckmaster7600]

43 minutes ago, IM Hooked said:

Depends on how much you will make on the sale, and how old you are. Don’t forget about capital gains taxes when you sell. If you are still young I would take the monthly rent,plus it’s close to your property.

I would more than triple my my investment with the sale. I’m 35 my finance lady told me there’s ways to mitigate the capital gains. But we didn’t get into it to deep. 
 

 

[grampy]

If you are fine the way it is now. No need to change anything. At only 35, you'll have ample time to decide when or if to sell. And still make a tidy sum down the road. Let it ride.

[Spaceman Spiff]

Keep it. Land is the best investment, they aren’t making anymore of it…. If you have any inkling of your daughter living there keep it. You will regret it, plus it’s a border property. I vote keep. 

[Spaceman Spiff]

Just now, Spaceman Spiff said:

Keep it. Land is the best investment, they aren’t making anymore of it…. If you have any inkling of your daughter living there keep it. You will regret it, plus it’s a border property. I vote keep. 

 

[IM Hooked]

At 35 years old take that monthly rent and work on getting another rental.

[Buckmaster7600]

58 minutes ago, IM Hooked said:

At 35 years old take that monthly rent and work on getting another rental.

I don’t see me getting into any other rentals. The setup I have now is minimal work, I’m not responsible for mowing or snow removal. Heat and water are the only things I have to worry about. My goal in life is to limit stress adding rentals would go against that.

[phade]

1 hour ago, Buckmaster7600 said:

I don’t see me getting into any other rentals. The setup I have now is minimal work, I’m not responsible for mowing or snow removal. Heat and water are the only things I have to worry about. My goal in life is to limit stress adding rentals would go against that.

You have two totally ends of the spectrum in your responses. Not saying that’s bad but I can understand your dilemma because of it. On one hand you have an attachment to the property to a degree for future use and relation to the family farm. The other is you won’t buy more rentals and you like not having to manage it. That to me tells me you’re  a bit lucky nothing has gone wrong to create a headache to deal with - which WILL happen at some point.

While a lot have said to keep it, I may suggest to get rid of it. 3x ROI on sale plus what you’ve made on rental thus far? Take that money and reinvest it. You maybe be able to 1031 it, or invest it into another vehicle for passive income. 3X investment is a major cashout in and of itself. You should be able to find something else for your daughter if you see fit. And you’ve pulled off a miracle - being a landlord and having had nothing go bad during that time.

My answer would be different if you were getting other rentals or enjoy the landlord aspect. Find another passive way to use that money IMO.

Edited May 14, 2023 by phade

[2BuckBizCT]

13 hours ago, Buckmaster7600 said:

I would more than triple my my investment with the sale. I’m 35 my finance lady told me there’s ways to mitigate the capital gains. But we didn’t get into it to deep. 
 

 

It was unlivable and you gutted it all. All those expenses on home improvements are the write offs to use against the sale gains