Trying to come up with a vague idea of a plan or at least a direction. We have a property; its been in the family for three generations and is worth about 2.6m. There is 500k in a mortgage that was taken out to support my grandparents.. I'm now saddled with paying for it. its a 15-year ARM and is now at 6% for the next 12 months resulting in a 5k a month payment. The property is being used as an Airbnb, it did fairly well till this last year. There were several months of nothing due to the weather, and then Airbnb shadow-banned us. So this year, it barely broke even. that said, we have listed the property, and hopefully, it will get the asking amount.
There is quite a bit of carry forward losses and stepped-up value that if I weren't to do a 1031, there would only be like 100k in cap gain taxes. So, buying property in a 1031 may not be the only or best option.
So here comes the dilemma: what to do with the funds if it does sell. My primary residence is taken care of by my other half. we want to move to something larger, but where the rates are, it doesn't make sense. I also need to find a home for my mother, as she lives on the property (two homes on the land).
a few thoughts that have come mind:
use this large chunk of money to create a fairly stable income... but what is the best strategy to do this. Buy a bunch of investment properties outside of California and grow a little rental book.
Is it better to buy a larger home, have casida and have a very small rental income from a single property? thinking to relocate to Arizona, but nothing set in stone. Or do the same in California, but that would eat up a majority if not all, of the proceeds.
To the necessary questions:
How old are you? What country do you live in? 35ish -- California, usa Are you employed/making income? How much? -- gainfully employed- about 100k - husband makes considerably more than I, I have the option not to work at all and raise the child. I don't hate this option. I could also start my own firm... What are your objectives with this money? (Buy a house? Retirement savings?) -- I don't know... see above What is your time horizon? Do you need this money next month? Next 20yrs? It depends on when this property sells. What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?) I'm somewhere in the middle, but depending on the ability to get out of the investment, I might be open to a bit more risk. What are you current holdings? (Do you already have exposure to specific funds and sectors? Any other assets?) I have about 10k in the stock market and some other investments. but this different Any big debts (including interest rate) or expenses? Mortgage on the property, 200k in law school student loans. But I don't necessarily want to pay off all the debts if there is a better opportunity to grow the money. And any other relevant financial information will be useful to give you a proper answer. I think I thought of everything but, feel free to ask questions.
Submitted November 16, 2023 at 02:42AM by psquared1155 https://ift.tt/T82hR1j
