Guy Miller
Active 11 months agoForum Replies Created
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Posts
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Hello Ayesha,
Thank you for your response!
I have owned the smaller mobile home park for 18 years. I have depreciated it through the years, so it would taxed upon selling.
I have owned the larger mobile home park for 8 years.
As far as I know, the 1031 exchange is only for acquiring a new property, unless I am mistaken.
The cost benefit of putting the mortgage on the smaller park would only be that the interest rate would drop by slightly over 1%.
Selling park owned homes is a good idea…And will be a good strategy as I near retirement and don’t need the cash flow and PITA factor.
There are not enough park owned homes to currently pay off the mortgage.
Good thoughts…Thank you Ayesha!Hello Jackie,
Thank you for your response.
I would prefer to have the larger park paid off instead of having the smaller park paid off (twice the income).
The thought was to fully leverage the small park (that currently has no mortgage) to pay off the larger park. That way, if I did lose the smaller park, the larger park is free and clear, and my income would not be impacted as much.The “financial friend” may be the simpler solution in the event that rents are not getting paid (due to the virus impact). When times get rough, hopefully those “financial friends” will not be too scarce.
