I am looking for some advice on the best thing to do with $90,000. Here's my situation:
1. Sold a property now have $90,000 in bank.
2. Still own one single family rental with a mortgage of $77,000 currently rented for $1100/month.
3. Own the house we live in with about $50,000 equity, owe $164,000 mortgage.
3. 34 year old medical student in 3rd year (Class of 2020)
4. Family man with four boys under 7 years old, wife is home maker.
Should I pay off the rental property?
Do I keep the money in the bank and use it for living expenses over the next 6-7 years of my training?
Take the money and invest in stocks, bonds or annuities?
Other ideas?
My challenge is limited time with the demands of medical school and family. We are living in the third foreclosure that I have rehabbed. I just do not have time to work on another property. What are my options?
It depends on what you want to do there are many people on BP who advocate what I consider to be a house of cards with borrowing everything you can to maximize mathematical return. In your situation I'd either save it or pay off the rental mortgage to increase your monthly cash flow.
Thanks for your input. I am leaning in the direction of paying off my rental, at the same time I recognize the opportunity to reinvest in new properties. Would hate to be kicking myself later for a missed opportunity.