I'd go with the one I felt most comfortable in. I personally wouldn't sacrifice comfort and standard of living merely for "equity." Equity is important, I'm not downplaying that... but I don't think it should be the #1 deciding factor as others seem to think it is. Maybe... #2.
How fast are real estate values rising in that area? 20 miles to work? Let's just say $5 a day in gas... plus 45 minutes or so of your time each day going back and forth. So, it depends on how valuable your time is to you as well. Suppose you gain $5000 equity in the house in 2 years. That's at an expense of between 300 and 400 hours spent driving to and from work, and maybe 2500ish in gas. Is the trailer in a better neighborhood? Better schools or worse schools? Do you have to pay property taxes on the trailer? (a lot of places don't have property taxes on mobile homes.) While the equity in the trailer is certainly desireable, it really depends on how fast real estate prices are rising in that area as well as the other factors I mentioned. If it were in this area, where I am, I'm fairly certain that a $100,000 house this year won't be selling for much more than $100,000 in 5 years. You mentioned a large yard for the trailer - what about the house? Recreational facilities nearby? (parks, etc.)
Way too many things to consider than just equity. All things being equal, the house is by far a better decision, but, simply the 20 mile drive negates the "all things equal."
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