$100k what to do? Pay down mortgage or use for renovations?

Correction house is worth around $450k

Assuming you are planning to stay in your house, I would invest in upgrading it but also not use all of the 100k for it. Maybe 30-40k. Try to do a lot yourself. Youtube is your friend. Get an IKEA kitchen they are way better than any midgrade stuff you get from most kitchen outfitters.

The rest I would invest.

For the $500 offseting your mortgage, is that cashflow impactful?

Part of me says just dump the 100k into an sp500 fund.

Similar but different. We did a refi on our house and took out about $100k which we put back into the house. Upgraded countertops, counters, and cabinets, replaced crappy "manufactured wood" flooring with wood grain tile, upgraded appliances, replaced a door in the garage, upgraded the front door and storm door, installed a paver pathway around the house and expanded the patio area next to the deck with pavers then expanded the driveway / parking area with a concrete pad. Previously, the expanded parking area was gravel and tended to sprout weeds during the summer.

I think that it was a good investment. IMO, it brought our place up to par with the rest of the houses in the neighborhood. As for DIY, it would have taken me 5 years to do all of it myself.

Pretty simple. Pay off car. Do up to $25K in renovations. Pay off $25K. Hold the rest for the $500 per month mortgage payments or emergency.

not an official wrote:

Pretty simple. Pay off car. Do up to $25K in renovations. Pay off $25K. Hold the rest for the $500 per month mortgage payments or emergency.

Id do all this except the "Pay off 25k".

Any SP500 fund will net you more $ than the 3.x% interest you are attempting to avoid on the mortgage. Literally no incentive to pay off a home unless its a full payoff and you shed your mortgage entirely.

Mortgages are for suckers. No offense intended, just facts.

If you can afford the payments, I wouldn't payoff either car or mortgage loans early with such low interest rates.

For renovations, would you be getting a return on that investment by increasing the resale value of your house? Or will you be overvaluing your house compared to neighborhood/comps? That being said, if you can afford it and want to put money into renovations because it will make your life easier, house more comfortable, and/or make you happy, then those are good reasons too. Doesn't have to be a purely monetary decision.

All of that being said, I would probably do something like $25-50k invest and $50-75k into renovations.

Even with the 401K, consider contributing to a ROTH IRA. No one's ever said they have too much retirement $$. $6K annual limit... but you actually can contribute up to April 15th the following year. So now, you can still contribute $12K. By the time you retire, it will probably be a year's worth of money.

This advice from me may surprise some people, but given your still youthful age, given that you seem satisfied with the amount in your 401k currently, and all the other things you said, if I were in your shoes, I would do this:

1) Use the money for the renovations. I wouldn't even put a limit on the amount spent on the renovations other than no more than about the $100,000 you are going to net from the rental sale.

2) I don't much care about the $13,000 you owe on a 2016 car. I assume through normal payment that that will be gone relatively soon. I would just go with that. If you WANT to pay it off, fine by me, but I don't think you NEED to.

3) 13 more years on the mortgage is not really all that much longer. Assuming you don't refinance, you'll own the house outright by your mid 50s. That's pretty good.

JohnJoe wrote:

Selling rental property and will be netting $100k. Question is what should we do with the money?

Any thoughts? Best to pay down mortgage and car or hold back money for renovations? Or any other options I’m missing?

You buy the dip in the crypto market because institutional money + inflation + international reliance will cause prices to rise. Put $30K in bitcoin and sell it when it hits $65K (which happened twice in 2021). Put another $40K in ethereum. And with the remaining $30K you should diversify into some alt coins and dapps. Chainlink, Avalanche, Polygon, Polkadot, Solana are looking like good ideas with momentum. And, since you have the $$, you should throw a few bucks here or there into ludicrous memecoins like Dogecoin, Baby Dogecoin, Shiba Inu, Doge Token, DogeFi, DogeSwap, etc.

By the end of the year, you should have enough to knock out even more than $100k off your mortgage.

- /s/ Vitalik Buterin

I would not be in a rush to pay off a mortgage with a 2.65 rate.

Personally, I would pay off the car. It is a slightly tougher call.

If you are good with your 401(k) and continue to contribute to it to a bare minimum of 10% of your salary, I would do the renovations if you plan to live in the home for a long time. It is nice to be able to live in a nice house. We did renovations last summer and I am glad we did them even though it was a pain while going through it.

I am not sure what you mean by restack the loan. I would be hesitant to take out a loan with a higher rate.

Restacking the loan means they just recalculate the monthly payment after paying a lump some. Term stays the same but monthly P&I payment would drop accordingly. Currently it’s about $1830 if I pay off $100k it would drop to about $1100 per month

I also say invest the cash in an etf, hold enough in a 0-risk account to meet unexpected expenses. Or, you could beat 4% ror by renovating and improving the value of your house. Like someone else said, is the $500 loss of income going impact your quality of life? You said you have a strong 401k so I assume this will just decrease how much quarantined income you can save. You were making 6k/100k or 6% from the property so good move on selling at that price

Easy . Inflation the way it is. Renovations.

Steve The Addict OFFICIAL -----^^^^^ wrote:

Mortgages are for suckers. No offense intended, just facts.

Totally Wrong.

Cryptoshtcoins are for suckers. Your job is then (or will be) to find a greater fool to sell the worthless tokens to before the ship sinks

Education for Steve the Addict:

Mortgages at low fixed rate debt are great since money is cheap. Plenty of rental property owners have them even if they have the money to pay them off