Pay off debt or remodel a new rental unit?

[zombocom]

Originally Posted by kinkytoes

LOL What? Which unregulated, uninspected eden do you have rental property in? I'm being only mildly facetious. Please tell me where this is true.

I think he was pointing out that a place doesn't have to be fancy to be rented... As long as it's clean and habitable (utilities, structurally sound, no health hazards), you're good to go.

[james777]

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In general, the $750/month income (rent) is a better use of the money (I am assuming there are no additional costs of renting that unit over and above what you already pay, such as taxes, etc)

What I would do is the remodel and get that unit on the rental market within 30 days. Take the entire $750/month and add it to the $200 payment to the $10,000 @19% card. That will get that paid off in a bit more than a year. Then work to pay off your other credit card.

For the math of this question, take your yearly income of $9,000 ($750*12) and divide it by the cost to get that income, $15,000.......9000/15000 = 60% return

That is better than that awful 19% CC.

If you can find a way to refinance that 19% card, I would do that also. But, still, your best bet is getting that rental unit on the market.

Originally Posted by Butterfly4u

Vectoris,
Get that rental unit RENTED.
TIME IS MONET MAN.
This time next month, if you did it, you will be collecting
750.00 to HELP pay down the credit card debt.
You are getting zero now, right? You are paying
the cc debt now?
Next month you can add another 750.00 to that high interest
10k credit card. It'll be paid off in no time
Every single month you aren't collecting rents, is a negative.
Get out of negative, and collect the money ASAP.

I'm with the two posters above. Yes, you need to get rid of that credit card debt, but having been in your shoes before, I can tell you that the most important thing you need to do right now, like yesterday, is to get that rental unit fixed up and on the market. By keeping it boarded up you are destroying the value of your property and the surrounding properties, ruining your tenant's peace and quiet (not to mention peace of mind), and surely violating a few local housing codes. And the LAST thing you want or need is your tenants wanting out of their leases because of the thieves, and homeless people breaking into the adjacent unit. With the income from that unit you can pay off the credit cards and hopefully never have to carry a balance again. Please get moving; there is no time to waste!! Good luck.