No. of Recommendations: 4
One more question that I forgot to ask. Are there any taxes that will be due on the $125k? If so, those taxes need to be set aside first, before you start spending money on anything else.

- 20k emergency fund

Is $20k enough for an e-fund? How many months of expenses will $20k cover - including the investment property expenses?

that leaves 75k
- 2k to refi to make the property cash positive -- which right now is netting me like 2-3% .. after I hada horrible tenant that leveled it..and I had to do a complete remodel

and invest 73K .. or seriously AJ .. just pay it off..


Well, I'm not sure what you mean by refinancing to make the property cash positive, when you say in the next phrase that it's netting you 2% - 3%. Are you counting tax benefits as part of a 'net positive'? If so, you are essentially investing in the property every month, as you are cash flow negative. Is that the investment you want to make? Do you want to refinance, and have some positive cash flow each month? Do you want to pay it off and have a higher positive cash flow each month?

You really need to decide what you want to do.

If you can have an investment property that has positive cash flow, AND you want to continue to be a landlord, then you need to decide if the additional cash flow you would get by paying off the property instead of refinancing is the investment that you want to make, or if you would rather invest in something else.

If you don't want to be a landlord, then you need to sell it.

Whatever you decide, I would strongly suggest an 'investment' that requires you to put cash into it each month isn't really an 'investment' - it's an expense.

Widowed @45 :(

Sorry for your troubles. If his death was recent, after paying off the retirement loan and the credit cards, it might be better to just put the rest of the money away someplace safe (a CD, a savings account, etc.) and figure out what you want to do with your life before spending the money in a way that you may regret in a few months.

AJ
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement