Dave Ramsey (2:05)

Those houses that are Airbnb are paid for.

Caller (2:09)

Well, one is a guest house on our property. So, I mean, it just kind of is absorbed into what we own. Our house.

Dave Ramsey (2:16)

Gotcha.

Caller (2:18)

One is paid for. We just finished paying it off last year. And one has 40,000 left on it.

Dave Ramsey (2:24)

Okay. All right. Pay the 40,000 off immediately. You probably got. You probably got that in checking.

Caller (2:33)

We will in a few months.

Dave Ramsey (2:35)

Yeah, be done. Be done with it. All right. Now then, you're making 150 on Airbnbs. What's the profit on the mobile home park after bills are paid?

Caller (2:46)

After bills are paid? About five grand. Now, that includes we're reinvesting into the park and upgrading it. So sometimes we've got a slush of 5,000, sometimes we use it all.

Dave Ramsey (3:02)

Five grand a month or $60,000 a year. You're making nothing on this. Why, why in the world you have a $650,000 mortgage on something that's only making 60 grand? That's horrible.

Caller (3:17)

It's. Again, it's because we're putting.

Dave Ramsey (3:20)

How much are you putting back into it? Well, 200, 300,000.

Caller (3:25)

It has.

Dave Ramsey (3:27)

No, the thing ought to be cash flowing like a bandit. Yes, mobile home parks print money.

Caller (3:36)

True. Now it's, it's not a big one. There's only 13 mobile homes and it also has a four bedroom house on it. Somebody left that in absolute.

Dave Ramsey (3:48)

Okay, you're something screwed up about your numbers, honey. I don't care. Still something screwed up about your numbers. You don't have a $650,000 mortgage on a mobile home park. That makes 60 grand. That does not make sense. It should. It literally should be making 300 grand. Okay, something's wrong. Are your rents off or you know what?

Caller (4:09)

Well, as a mobile home park, some. Yes, some of our rents are pretty low. I mean, it's low income housing.

Dave Ramsey (4:14)

I know that. I said, are they not? But you're not charging. It's a, it's a trailer. Of course. It's lower income housing.

Caller (4:20)

You know what? Half of them, half of them we have redone and the rents are keeping up with the local economy. The other half.

Dave Ramsey (4:31)

Okay, here's what I want you to do, because I can't figure it out on the radio here, okay? But I, I own several hundred million dollars worth of real estate and I've looked at, I've owned mobile homes, I've owned parks in the past, not in. I don't own anything like that right now, but I know the numbers on these things. So here's what I want you to do. If you did not own this mobile home park, I want you to back up and ask yourself this tonight and run the numbers and you and your husband look at the numbers and you said, I've got the opportunity to buy this and go $650,000 in debt to buy this, and I'm going to make $60,000 a year after doing that. Would you buy it again? The answer should be no to that question, by the way. But if there's other things that you and I aren't connecting on where this money's going inside this thing, which you seem to be alluding to, and there's a lot of money, I think missing in this conversation. You need to look at this and say, you know, do I need to not be doing a bunch of this stuff and instead paying down this mortgage because the stinking thing's gonna reset and I want you to pay it off. That's what I was working towards. I don't want you to pay it down. I want you to pay it off. And if you're making 300 instead of 60, you could do that before it resets in two years by plowing it all into the mortgage instead of into improvements in the mobile home park. And that's what I think should be happening. But I'm, but I'm missing some money here because you can't find it in our conversation and it might not be there, but I think it should be. You should not have 650 invested in mobile homes that are going down in value and then only be cash flowing 60k. That sucks. If that's what's happening, you should sell that. If you can get someone else to buy it, you should sell it and get rid of it because that's a horrible ROI in that situation. Horrendously bad investment. But if you're making three or 400 on the thing somewhere in there, there's something I'm missing in these numbers then. And you can get this, get rid of this mortgage before it resets with the Airbnb money piled on there too. And I think you might be able to do that. Instead of fixing up the sidewalks or some kind of crap in the mobile home park, let's get rid of the mortgage and then we'll go back and do our improvements on the property, our capital improvements once we're debt free and we've got real cash flow that I think you might have this stuff out older. That's what I think is happening. But if you really our $650,000 in debt on depreciating losing value mobile homes and your only cash flowing 60, you got a really bad deal and you need to get out of it if you can. It sucks as an investment. Mobile home parks generally aren't that bad. They generally are cash money. Because I talked Georgia and I talked to a lady earlier this week, Ken, the Investing Essentials event. She had no on the air here. She had 750 tenants. And of those, I think 60 of them or 70 of them were in mobile homes that she paid 20 grand apiece for. And she was making bank. Yeah, yeah. I mean she was printing money off of that. And so that, that's what normally occurs. And so I think there's too many improvements here. She's alluded to that. She couldn't give a specific sound. Too many redwood decks. Yeah. Or something. I don't know what you're doing putting. Giving them all a hot tub. I don't know what we're doing, but it's like, I don't know what's happening, but something's got to change. Anyway, that. That's the thing. So mobile homes, for those of you that are looking for something to live in, never do that because they go down in value. It's a car you sleep in financially. That's what it amounts to. And if your parade of homes is going down the highway, you might be a redneck. I'm just saying so seriously. And I love it. I'm not picking on you if you live in a mobile home, I'm telling you, don't buy one to live in. They go down in value. Houses up in value. The place where you sleep should be going up in value. That's what you ought to purchase. If you're going to do an investment like she does, however or the lady we talked to, she got 20 grand a piece in them and the things are cash flowing. She's breaking even every 20 seconds on those things and she can buy another. And if they in five years are worth zero, she buys another 20,000 and throws it on the pile. And you know, that's a different thing. You're cash flowing on a depreciating asset there. But that makes. And that actually can make business sense. It's a pain in the butt to operate them, but it can actually make ROI business sense. So. Wow. It's an interesting discussion, Andrea. Thank you for involving us in it. I'm sorry I wasn't more thorough, but that gives you some things to chew on and for y'all to think about. Create your free everydollar budget today. The simplest way to budget for your life.