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Subject:  Re: Poll: Help me figure it out Date:  12/29/2013  12:45 PM
Author:  aj485 Number:  307622 of 312852

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.

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