A person sold a home earning a "good" amount of profit, but undecided about paying off another home with a low balance. The "low balance" home needs gutting/refurbishing. Should the person pay home out in full and refurbish or buy another home? And, is it wise to pay a home off while waiting to retire in 1-3 years? Thanks!
2007-09-01 08:55:16 · 2 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
If you are getting ready to retire the best course is to keep your expenses to a minimum. Is the fixer a rental unit? If so it may be wise to bring it to rental standards. At least new paint and flooring. refurbished bath and kitchen if possible. A refinance is generally the best way to do this but if you have recently had a large influx of cash through your prior sale it might be wise to use these funds and the write off for your taxes. I always dislike giving recommendations without having all your information but minimize your expenses and taxes if at all possible.
2007-09-01 09:17:26 · answer #1 · answered by Traveler 7 · 0⤊ 0⤋
It's not a good idea to have a ton of equity in a piece of real estate. I'd take out a line of credit on the second home and fix it up.
2007-09-01 16:09:56 · answer #2 · answered by Suzy 5 · 0⤊ 0⤋