As title says, my father passed away. cancer sucks. Mom currently has no debt except the home mortgage ($110,000) and her car ($11,000). After home and car is paid off she’ll have around $80,000 cash.
She plans to get back into working part time ($800/month). This puts her at around $2500/month. monthly expenses revolve around $1,200. This leaves her at around $1,300/month to do whatever.
Going forward on this thread, let’s say she pays off the house and car leaving her at $80,000 cash.
Couple options: 1. My mom is looking to move to a smaller home. Our house needs major renovations (foundation and interior is mostly torn apart). Expect around $30,000 put down for renovations. This leaves her at $80,000-30,000 = $50,000.
Let’s say she decides to sell the house at ~$300,000 (zillow states homes in my neighborhood are worth this much). Now she has $300,000 in her pocket. Ideally a decent 1 or 2 BR in Dallas is around $200,000. After all housing expenses (she’s exempt from property tax) I’d expect her to have around $80,000 in her savings given she purchases a $200,000 home. How should we go about minimizing renovation cost and selling and buying a new home?
Option 2 Renovate the house ($80,000 - $30,000 renovation cost)What should she do with the $50,000? She has $14,000 in her Roth IRA which I’ve helped her with. She lives an extremely frugal life and when she stops workin and receives my father’s SS her monthly income should jump to $2,000/month.
Also, we expect to receive the life insurance money in a couple months so we are trying to plan in advance.
Sorry for the long post but trying to figure out the best long term solution.
Submitted August 09, 2018 at 07:32PM by putnanpiglet https://ift.tt/2vuIlqC
