Trade Ins and resident wanting to upgrade

I was wondering how owners handle when residents want upgrade from an old/small mobile to bigger/newer mobile.

For example, the park has a nice 3bed 2bath vinyl/single home that is fully rehabbed with new flooring and paint which in my market goes 14-17K on payments with $1000-1500 down. A resident wants to give the park his old home for the down payment and make payments. The old home typically needs $3000 in rehab and might sell for 7K.

I have not done this kind of trade in before, I normally tell the residents to try to sell their home for cash and then do transaction with the park. The residents never have been able to sell because: cash buyers are hard to find and the homes need work. I have lost a least one good tenant because I was unwilling to do the trade.

The problems as I see them are: 1) I’m basically trading a good home for a old home that needs work. 2) I don’t want to lose a resident to another housing option because they outgrown their home or want to upgrade. 3) Each time I do this instead of getting $1000-1500 I have to put out $3000 in rehab $ in exchange for payments 4) In my market, the 15k newer is generally easier to sell than the older one at $7000.

I searching for a solution that retains good tenants but is structured in a way that works for financially.

Thanks for your input!

Looking at the situation as a opportunity to increase profits.
Finding a new tenant for the 15K home will net you a better quality tenant as opposed to the lower quality tenant you now have trading up. Don’t view the possibility of a tenant leaving as losing a good tenant, tenants come and go, find a better one.
The tenant wanting to upgrade has a choice sell and upgrade, stay where they are or leave and abandon the home.
If they stay where they are it’s a plus for you as you get a better tenant in the more expensive home and keep the old tenant, if they sell and up grade you have no work and no lost rent and if they leave you get a free home to make a profit on.
I see no downside to saying no to a existing tenant wanting to upgrading but I only view the business from the perspective of how can I make more money with as little effort on my part as possible. I would defiantly take the risk of saying no and see what shakes out.