Question for Tony Corella - Posted by lenny

Posted by Tony B Tony on August 06, 2007 at 14:59:56:

Tony Corolla maybe? Tony Chinchilla? Tony Collecta? Tony Co-dependant?

Heck, let’s just call him plain ol’ Tony!

Question for Tony Corella - Posted by lenny

Posted by lenny on July 26, 2007 at 20:24:27:

Tony, need your expert opinion. I have a 1985 DW Palm Harbor on my quarter acre lot. I paid 15K for mobile including moving 3 years ago. Have rented out 3 years at 650 month. Great tenant wants to buy mobile home for 10K.I am thinking of selling depreciating mobile and she will rent lot for 450 monthly. I will give her a 5 year lease at that price. She is getting a good price on mobile, she is happy. I keep land, no hassel. Even if I stay at 450 monthly for ten years I can live with it. My total investment in land/jmobile is 32K. I have other rentals (L/H) and it this works out might offer them a similar deal. What is your opinion. I am happy with the no hasssel rent them the lot (good enough). I have a son who is my partner who is young enough to wait for the land to really appreciate (not that is hasn’t). I am in Florida and it only can go up. My horizon is 20 plus (son would be 49). We are a buy and hold guy like you. Plus the rental (l/h) gets us thru any tempory soft market. Value your opinion and thanks for all the good info here.

Re: Question for Tony Who? - Posted by Tony Colella

Posted by Tony Colella on July 27, 2007 at 06:37:20:

The decision is a personal one. There is no right or wrong, it simply is whatever feels and works best for you.

Consider any tax ramifications such as recapture of depreciation so that you can truly compare apples to apples.

I would also want to know just how difficult it would be to evict in your area if the tenants stops paying. In many areas this would also require the removal of the home which can get expensive.

The price the tenant is paying seems very, very low. Tyically they should expect to atleast retail or more for the easy terms you are providing. I would not want to sell it for less than I paid, including the move 3 years ago. Stretch the payments out if necessary to make it work out.

I would stick with month to month so as not to tie your hands down the road and better control the tenancy. This way you can react quicker to problems that may develop and your son may be able to better take advantage of “higher and best uses” for the property if the land itself appreciates to that degree or becomes valuable for commercial, single family, duplex etc.

Again, no right and wrong. The best we can do is to look long term, consider all the factors including taxes and then compare apples to apples. The value is only relevant to the owner.

Tony Colella