Big financial decision I want to be smart and need real advice.

[Bennyboy]

Renting is fine if you can make it a full time job so you can manage, maintain, etc. This means multiple properties usually. Any less is just a hassle.

I’d take the money and run.

 

[DADI03]

I'd rent it out

 

[WallsGa]

Do you want to be a landlord ?

No, you do not want to be a landlord, and it’s not worth paying someone to manage your properties unless you have 5 or so all bringing in income.

Put most of it towards your new mortgage and put everything you can in your 401k. You could retire mid 50’s and live well.

Also, I’m a sommelier not a financial advisor. Hit me up with wine questions tho.

 

[GeauxLSU]

An overwhelming sell sell sell. I think I will follow this advice.

There is no 'right' answer and there is no way to know after the fact if you made the right decision.
I've been a landlord for 20 years, most of that for just one property. I've only had one nightmare but I was prepared. Having just one now, mortgage free, I am extra picky about who my tenants are. Or maybe I've just been lucky.
In any case, do whatever you need to do to maximize your net worth as quickly as possible. As has been pointed out, interest rates very well may never be lower in our lifetimes. A mortgage free rental home is not a horrible thing. I wouldn't mind having a few more. Now, I don't want them so bad I'm actually doing anything to make that happen mind you.

 

[optimist]

So I am building a new house that will be ready in just a month or so. I have a house on 4.5 acres that I only owe 100k it's worth if sold is about 250k.

Am I better off selling my house and throwing my equity at the new house. Or should I hold onto my current house and rent it out?

To be clear I can afford both mortgages but dont want to carry 2 because who does? I am only 31 and want to make a smart financial decision that could impact my future the best. When it comes to money risks I tend to error on the side of caution and take what I can now. But it 10 or more years my current/future rental house could be worth 300k+ and be paid off. Even if the market tanks again it will always he worth more then I owe.

What say you ODT keep and rent or sell and have a tiny new mortgage?

It's sad that a young man has to think like a old man.....instead of living.....Get out of debt.That's concrete...not like one's 401k's which is left to the unknown

 

[The Old Jaybird]

Another thought.....can you sell the house, but retain 3-4 acres of the land for future sale or use by you as a homesite "down the road"? Something to consider. You know the "lay of your land" better than anyone else here on ODT, maybe this plan is just not feasible.

 

[Gimli2]

What are your long term goals? If it’s wealth, keep it and rent it out. At the very least you will (hopefully) have an appreciating asset. If your long term goal is independence, sell it.

 

[Psilloh1]

Wish I could get 8 percent on cash

You Have never been able to. You can in the stock market or etf’s especially since we are down 23% from the highs.. I think the markets have more to give.

 

[InTune]

You cant never have been able to. You can in the stock market or etf’s especially since we are down 23% from the highs.. I think the markets have more to give.

Forgot to add risk free

 

[Psilloh1]

Forgot to add risk free

You can’t use Risk free and 8% annual return in the same sentence...