Looking for some opinions on what you would do?
A friend of mine owns a home in eastern Massachusetts in a desirable area, commutable to Boston with good schools. He owes roughly $260k on a mortgage and the house is worth about $350k. He was recently offered a job in Nashville and is going to be relocating.
He is trying to decide between the following options:
1 - Sell house in MA and use majority of proceeds to pay off high interest debt.
2 - Rent out house in MA which would cash flow approximately $300 per month after mortgage is paid.
The debt load is credit card debt and fairly significant. Any thoughts or ideas are appreciated thanks!
If he has significant credit card debt, I would sell and pay off the high-interest debt. Chances are the interest rate on credit card debt is significantly higher than any return he can get on an income property. Once the debt is paid off, he should have disposable cash to save for a downpayment on another property.