Inheriting some money need advice!

5 Replies

Hello, I am completely new to all of this as I am now starting to research and gain more interest and insight on real estate investment. I am inheriting $100,000 very soon and not sure how to proceed . I do own a SFH that I bought as a foreclosure 8 years ago and I am currently renting it out and gaining $700 a month from that alone right now. I did move back with my mother in the meantime to save up some money and buy a second home for my two-year-old daughter and I. So with the $100,000 that I am receiving I was thinking of putting 50,000 towards my first home to pay it off in 5 years which will give me $1,900 a month clean and take the other 50,000 as a down payment for my second new home not sure if this is a wise move any advice will help, thank you.

Chariss, it would be tough to say exactly what is the best move without understanding exactly how much you have in the bank vs current mortgage (balance & rate) on the SFH, earning potential / daily job etc. The rent vs buy calculation in your area (where are you?) matters as well- and whether or not you can stay with your mother easily. I say live with your mother as long as you can, pay off some of the first home if you're at a high leverage point, and then analyze whether or not it makes sense to buy vs. rent, whether you will be staying there for at least 5-10 years etc, whether your requirements will change e.g. wife in the picture? future wife? - don't need to tell us, just a consideration for more space if someone is joining you and your daughter, or perhaps future kids. If things are tight, renting is always a safe choice $$-wise, because of the price of flexibility.

Your plan doesn't sound bad- but there is no best plan for everyone.

Thanks Justin for the fast response, a little more info to answer your post, I currently have $20,000 in the bank(savings), single mom no future plans as far as needing more space for now. The current balance on my 1st SFH is $105,000 @ 4.5 IR living in Miami (tough market right now). Earning $80k/yearly (job) Current situation is not tight, just looking forward in making a move already :) My plan was to do what I posted previously but someone had told me that I was crazy to not invest that money instead, so I'm trying to see different options

Hey @Chariss Hernandez

Personally I feel you should invest all of it with a reserve funds set aside. With 100k you can put down on two condos that are cash flowing in Miami. I’m not a big condos fan but because you have a daughter and full time job I feel they’re more suitable as maintenance is one less large concern.

I am still finding sub 200k condos with $150+ cash flow in decent areas of Miami (Kendall, sweetwater, miami springs) so it’s out there! Just have to be diligent.

Feel free to reach out with any questions, happy investing!

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