For anyone taking the time to bother with me, I want to offer you my most sincere thanks right up front. EDIT: I'll be here in front of the computer most of the day working on my homework so I will respond as quickly as possible to anyone who needs more info (Thanks, AutoModerator!)
Me
- 47 year old college professor in South FL up for tenure this year (started this career late in life in 2015)
- Single, no wife, kids, or any family at all (why I'm here - I have no support system, no help at all, and don't want to share this with my colleagues at work)
My Situation
- Both parents died last year and their terminal diseases depleted most of our finances and my inheritance over the past five years - we didn't have much due to my brother wiping out most everything we had before he died about 10 years ago (theft, rehabs, bail, lawyers... eventually he OD'd but not without destroying our collective finances first)
- Worst lawyer in the world screwed up my parents' wills so both parents' estates had to go through probate that cost me $5k to a much better lawyer
- Probate resolved this week and I sign papers next week to inherit both their primary residence and the house I live in (they inherited the house I've been living in when my brother died and it's just been in their name ever since - probably not smart, I know, but here I am)
The Houses
- Their residence: 100% paid off and probably worth $140k - $180k but it's a bit of a fixer upper and I don't think I want to put any money or effort into it because honestly it's just way too sad for me when I go over there and I want to get rid of it ASAP so maybe just $120k. This is one of the things I most need help with. How do I go about getting honest guidance here? Also, they had just borrowed $20k to put on a new roof and I've been paying that loan ($250/month) since they died and I don't know if that debt transfers to me. I'm just not clear but the lawyer might clear that up for me next week.
- My residence: I estimate the worth at $130k - $160k but there is a mortgage ($45k at $600/month) and a second mortgage ($20k at $220/month due to hurricane damage and insufficient insurance years ago).
My (probably unreasonable) Dreams
- 1-2 years: own a much newer home than I'm in and near my campus
- 2-4 years: buy a small second home (cabin) in, for example, upstate NY or VT, etc (away from the summer heat in FL when I'm not teaching so I can work on music, writing, and research)
- At least semi-retire (teach as an adjunct online?) at age 65 (2035) after 20 years in my position
My Assets
- Net income of $625/week (Gross $45k/yr)
- Parents car I'm going to sell (~$1800)
- I'm in the State of FL retirement plan for the past two years but not putting in near enough, I'm sure. I want to change that.
- ~ $3.5k in savings (been trying to recover but these past five years wiped us out)
- My car is in good shape, 100% paid for, and insurance is only about $350/year
- If I had the time and energy I could have an estate sale that might make me $3k - $5k but we didn't have many possessions as a family
- I have about a $55k credit line across several cards with zero balances
- I once loaned some friends in need virtually all of my savings and they've been paying me back about $800/month and now only owe me about $2.5k.
My Liabilities
- $15k @ 6.99% - One credit card (Had it at zero a few years back but then parents got sick)
- $4.5k - My mom's credit card debt (Bank of America) filed against the estate during probate
- $130k - Student Loan (B.S. and M.S., paying $300/month and am on track to receive Public Service Loan Forgiveness in another 7 years)
- $18k - Estimated cost of school over the next 3 years to finish a PhD which I'm half way through and need to complete for work
- $350/month (Utilities - cable, internet, electric, water, sewer)
- $20k Home Improvement loan on my parents' house I'm about to inherit that I think I might have to repay - not sure
- $45k ($600/month) mortgage payment on my residence
- $21k ($220/month) Home Improvement Loan on my residence
My Guess at a Plan
- Sell the parents' car and collect the rest of the debt from my friends giving me about $5k for a total of about $8.5k in savings.
- Sell the parents' home ASAP and hope for $140k
- Pay mom's credit card and home improvement loan leaving me with $115k from the home sale
- Pay off my credit card debt leaving me with $100k from the home sale
- Pay off my Home Improvement Loan from the hurricanes leaving me with about $80k from the home sale
What next?
Pay off my $45k mortgage leaving me with $35k from the home sale and then start saving like crazy? Or should I refinance (I calculate at this point I should be well in the "Excellent" range for my TransUnion and Equifax scores so I should be able to get a much lower rate than it is now - probably half) so I can sell this home, take out the $100k equity, and move into the home I want? I really just don't want to do the wrong thing and screw this up.
ANY advice is appreciated.
Time to do my homework.
Thanks, reddit.
Submitted November 11, 2017 at 10:26AM by PM_ME_KASIE_HUNT http://ift.tt/2ytrkNi
