Inherited my dad's home.....what should I do?

[Luka Doncic]

So here's the deal my great loving dad passed away a few years ago and I inherited a home that is completely paid off with no mortgage. It's a pretty big home coming in at 2800sf and I am single and no kids. I am currently working full-time in a professional industry and I make decent money with no mortgage and no car payment. Not very much bills.

I am living in this house right now and have become quite tired of living there due to the reminder of my father.

The question is......should I cash out on this home with has a value of well over 500k and use that as a down payment on a bigger luxury home?

Keep it since it has value and rent it? Renting it would give me an extra 2k a month which puts my boosts my income.

This is a weird predicament since my real life friends' opinions vary. Some say I should cash out and rent a home. Some say rent and get a small apartment.

Cashing out....rent a condo and buy a Ferrari? Joking.

Your opinions are considered. Thanks in advance.

[glidedrxlr22]

I say rent the home. You'll get extra income. Your house will most likely increase in value. Cash out later, retire and pay all cash for a home.

[~primetime~]

Sell and buy a sky rise loft/condo which is much more fitting for a bachelor w/o kids

or rent it out and do that...although that takes work, but if you have no family you probably have the time needed.

Single male only need 2 bedrooms really...master bed and an office...then a huge living area/kitchen...when I was a bachelor I had one and absolutely loved it. Only downside was a pricey HOA fee, mine was $500/month but they can get much higher depending on the building.

[Shogon]

What drives you in life?

These two above me are telling you that renting the home is an option, but unless you are super money driven, you shouldn't do that.

And you shouldn't do that for two reasons... renters **** shit up and way way more importantly... debt sucks.

And it sounds like if you rent it out, you're going to be renting an apartment or buying another place and going into debt.

DEBT SUCKS.

BILLS SUCK.

DEBT SUCKS.

BILLS SUCK.

DEBT SUCKS.

BILLS SUCK.


If you are unhappy where you are at, I certainly understand that, but you should sell the place and move on. Sell it and use it to buy something comparable or scale down even. DO NOT GO FURTHER INTO DEBT. DEBT SUCKS. DEBT SUCKS. DEBT SUCKS. DEBT SUCKS.

You never know when shit could go south, and being out of debt is the best way to ensure a noose isn't around your neck waiting for you to drop. DEBT SUCKS. YOU'RE ALREADY SOMEWHAT/MOSTLY FREE FROM THE SYSTEM. DON'T GO BACK INTO IT. DEBT SUCKS.

Besides, if you are leaving to escape it, renting out is not going to let you escape it. You're still going to have to pay the taxes and you're still going to have to go over there when shit breaks. You will still be reminded of your dad. Granted, every once in a while isn't the same as on the daily, but... DEBT SUCKS. DEBT SUCKS! IT SUCKS! ALL THESE PEOPLE POSTING ARE DEBT SLAVES.

[warriorfan]

If you are renting I hear Loney knows of a potential tenant...

In all seriousness though I would say if you were staying in the area then rent it... but shogun has a point, it’s counterproductive if you are trying to get away from that baggage. Just sell it.

[n00bie]

Renting out a home is a horrible investment imo. You should only be renting out condos.

This is what I would do. Sell for 500k. Put a downpayment on a condo to live in. Let's say that's 100k.

You have 400k left. Put down payments on 4 condos and rent out the 4 condos. You may not have a huge positive monthly cash flow, but you'll be building up your assets.

Also, dont forget. A big positive cash flow isnt the best thing as it will go into your annual income which means you'll get taxed more.

What you should be doing is having a very small positive cash flow on your investments until you retire. The key is you want to stay below the next tax bracket. Higher bracket of income = higher taxes.

In summary, sell your home and get 5 condos. Live in 1, rent out 4.

[Rolando]

Keep in mind that there may be some kind of Financial Crisis coming up in the very near future. If you have no debts that's excellent.

[Meticode]

Renting out seems like a big ass hassle. You have to meet with a ton of people, hope you picked the right one that won't f*ck you over. Then when they move you have to do it all over again.

[starface]

Rent it on Airbnb.

I have experience in this field and I am willing to provide assistance as a consultant. I can lend the equity of my own account as a five-star host and my plethora of great reviews to your operation.

In fact, I’ll even apply a “Friends and Family and ISH Posters” discount to the normal cost of my services.

:cheers:

[Lebron23]

Turn it into a bar or restaurant.

[kabar]

Sell it, buy a duplex near a military base(you can go to their command if they're not paying rent, dirty, etc), live in one side and rent out the other. Use the rest on a down payment for when the real estate market dips and you'll be profit a couple hundred grand in a couple years if you play your cards correctly.

[AlternativeAcc.]

Sell it.

Invest half in the stock market. Use the rest to pay off any debt you have and put a down payment on another home, buy a nice car

Now you've got assets and if you pick good stocks you'll have a great return without the hassle of renting homes out.

[Derka]

Not sure where you live but interest rates right now are driving buyers to overpay for homes. I'd sell it, pay off any personal debts and then invest the rest. Stick your money in a conservative mutual fund with modest annual growth.

[Draz]

Renters will **** it up

[KennyPowers]

Can I have it?

[Hittin_Shots]

What drives you in life?

These two above me are telling you that renting the home is an option, but unless you are super money driven, you shouldn't do that.

And you shouldn't do that for two reasons... renters **** shit up and way way more importantly... debt sucks.

And it sounds like if you rent it out, you're going to be renting an apartment or buying another place and going into debt.

DEBT SUCKS.

BILLS SUCK.

DEBT SUCKS.

BILLS SUCK.

DEBT SUCKS.

BILLS SUCK.


If you are unhappy where you are at, I certainly understand that, but you should sell the place and move on. Sell it and use it to buy something comparable or scale down even. DO NOT GO FURTHER INTO DEBT. DEBT SUCKS. DEBT SUCKS. DEBT SUCKS. DEBT SUCKS.

You never know when shit could go south, and being out of debt is the best way to ensure a noose isn't around your neck waiting for you to drop. DEBT SUCKS. YOU'RE ALREADY SOMEWHAT/MOSTLY FREE FROM THE SYSTEM. DON'T GO BACK INTO IT. DEBT SUCKS.

Besides, if you are leaving to escape it, renting out is not going to let you escape it. You're still going to have to pay the taxes and you're still going to have to go over there when shit breaks. You will still be reminded of your dad. Granted, every once in a while isn't the same as on the daily, but... DEBT SUCKS. DEBT SUCKS! IT SUCKS! ALL THESE PEOPLE POSTING ARE DEBT SLAVES.

He said the houses mortgage is paid off, where is this debt u keep going on about coming from?

[Hittin_Shots]

Renting out a home is a horrible investment imo. You should only be renting out condos.

This is what I would do. Sell for 500k. Put a downpayment on a condo to live in. Let's say that's 100k.

You have 400k left. Put down payments on 4 condos and rent out the 4 condos. You may not have a huge positive monthly cash flow, but you'll be building up your assets.

Also, dont forget. A big positive cash flow isnt the best thing as it will go into your annual income which means you'll get taxed more.

What you should be doing is having a very small positive cash flow on your investments until you retire. The key is you want to stay below the next tax bracket. Higher bracket of income = higher taxes.

In summary, sell your home and get 5 condos. Live in 1, rent out 4.

Do you think once you hit a higher bracket all your income is taxed at that rate or something?

[Hittin_Shots]

Sell it, buy a duplex near a military base(you can go to their command if they're not paying rent, dirty, etc), live in one side and rent out the other. Use the rest on a down payment for when the real estate market dips and you'll be profit a couple hundred grand in a couple years if you play your cards correctly.

I'm not sure about systems in US but in Aus their are military rent schemes you can get involved in. The rent rate is a bit lower but they guarantee the house condition will be maintained.

[Axe]

Can I have it?
:roll:

[Shogon]

He said the houses mortgage is paid off, where is this debt u keep going on about coming from?

It's almost as if you didn't actually bother to read my post.

[Phoenix]

How old are you OP? I would sell. Just taking that 2k a month rental idea, 12 months of that gives you 24k a year. It will take 21 years of consistently renting to earn what you can sell it for right now and walk away with. That's not accounting for all the bullshit of dealing with tenants plus you being responsible for the maintenance of the property. If you can get 500k RIGHT NOW out of that house, do it. Invest that shit over the next 25 years or so. If you're gainfully employed now, see if you can rent somewhere inexpensive, minimize your bills, save what you can. That, or buy a cheap condo not exceeding 100k and be mindful of whatever taxes/condo fees are payable and weigh that against a rental budget including utilities. I'd echo Shoguns sentiments about debt, so either pay that condo outright with cash, or put down like 50% and then do a short term mortgage on low interest to pay it off via your salary, so you'd have 450k to invest. You have the opportunity to invest for retirement AND own something that you aren't a renter for life. This is all theory on your COL though, I don't know if 100k condo is feasible where you live and if so in what area.

Don't do anything stupid if you sell like buy a Ferrari or some bullshit that's only gonna depreciate. Most people in life are never going to see half a million in their accounts, many won't even earn that much if you live your life as a minimum wage earner. This is a golden opportunity, don't f.uck it up. I agree with

[Jasper]

I say rent the home. You'll get extra income. Your house will most likely increase in value. Cash out later, retire and pay all cash for a home.

absolutely !!!!!!!!!!!!!! Make sure contract protects you and your property...
Over 2500 SQF should get a nice income to you for tax's and revenue.
Buy a smaller home with the rental money ... so your mortgage payment is covered by the rent.
When the little house is paid for - sell both or keep one of them.
Maybe over that time you will find a wife like I did,,, and settle down.

[SATAN]

Sell the house, put the money on black.