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Dave Says: Mobile Home as an Investment Resource?

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Dear Dave,

I’ve got a mobile home that I still owe $28,000 on that I use as a rental property. It sits on an acre of land that’s worth about $10,000, and I paid that off a few years ago. I’m thinking about refinancing the mobile home and going from an interest rate of 11.25 percent down to eight percent. Do you think I should do this?

- Karen

Dear Karen,

I’d refinance the mobile home, but you’ve got a bigger issue here. Should you KEEP the mobile home? And the answer is no.

Right now you’ve got a big chunk of cash wrapped up in something that’s going down in value like a rock. I’d sell that thing in a heartbeat, Karen. Otherwise, you’re going to see $28,000 worth of mobile home turn into about $8,000 over the next few years. That’s not a good investment strategy.

- Dave

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About The Author


Dave Ramsey is America's trusted voice on money and business. He has authored five New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover, and EntreLeadership. His newest book, written with his daughter Rachel Cruze, is titled Smart Money, Smart Kids. The Dave Ramsey Show is heard by more than 8 million listeners each week on more than 500 radio stations.