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WHAT? You mean all of my friend's sons I have stored in my basement to do "work around the house" is illegal? How does all of the law abiding citizens get a clean house?!
What is your long-term plan for the rental home? Was it your primary but now that you are living with a SO, you are renting it out because you do not wish to sell it?
Yes exactly. All expenses are met by the tenants. Eventually it may be my retirement home when we no longer feel like caring for 1.25 acres
. Or it will be all income when I'm 70. I haven't refied because I pretty much got laughed at by every lender due to low value and the heloc I guess. Its a conventional loan and didn't qualify for any handouts either. Plus my employment status was variable during the recession. I'm just happy I have great tenants right now.
Very funny. I sold the car forr 1k, he bought it as a first car for his son. And he's really tricking it out nice and caring for it. I hated selling it, owned it 11 years.
Without earned income, you cannot contribute to an IRA.
I have earned income from my job in 2015. Don't I still have time to contribute for 2015? Also I earn income on my craft sales. And 2016 is hardly going to be a zero income year. I'm transitioning to full-time self employment.
1) You get a GUARANTEED return of whatever you're saving on interest payments - looks like 6.25%. Not a bad fixed return.
2) With the money locked into the home equity, you won't be tempted to dip into it.
3) If something comes up and you absolutely need some $$$, you can go back into the HELOC.
Real estate is commission based, somewhat cyclical, and has the potential for months of high pay and a month or two of no pay in the same year.
Pay off the HELOC.
Pay off the car.
Put at least 3 months income in a savings account that is totally liquid and available if you need to cash flow a low/bad commission month (and replace it ASAP once the commissions start flowing again).
This (above three suggestions) will significantly lower your financial exposure/risk to market variations and allow you to get your new career firmly on track. Once you are an established producer and have an idea of what type of income you can consistently produce, use the balance of the money you inherited to jump on undervalued properties for sale (become an investor, not just an agent/broker) - money is always best made on the FRONT END of a real estate deal.
Yes exactly. All expenses are met by the tenants. Eventually it may be my retirement home when we no longer feel like caring for 1.25 acres
. Or it will be all income when I'm 70. I haven't refied because I pretty much got laughed at by every lender due to low value and the heloc I guess. Its a conventional loan and didn't qualify for any handouts either. Plus my employment status was variable during the recession. I'm just happy I have great tenants right now.
In this case you should pay off (and close) the heloc and pay down the first mortgage just enough to refi on favorable terms.
1) You get a GUARANTEED return of whatever you're saving on interest payments - looks like 6.25%. Not a bad fixed return.
2) With the money locked into the home equity, you won't be tempted to dip into it.
3) If something comes up and you absolutely need some $$$, you can go back into the HELOC.
And actually, if he pays off the mortgage, since mortgage interest is front loaded, he will be saving/making more than 6.25 percent interest.
He says he's receiving rent that pays the mortgage. He can put that rent into a retirement account.
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