Input On Which House I Should Sell
Hello,
Right now my mom and i are trying to decide the best route for her to take for retirement. She currently has 2 homes. One house is worth $250k and is fully paid off. The other one, which she lives in right now is worth $450k, with a $330k remaining mortgage balance. She has about a $2500/month mortgage on that home. My mom wants to actually buy a small, brand new home fully paid off for, but right now the real estate in Las Vegas (where we live) is way too high. The home that my mom owns free and clear is a bit old, thats why she wants something newer for retirement. My mom is almost 50, so she isnt very old, but she is very concerned about retirement, and making the best possible move right now.
I suggested to my mom that she sell the $450K home, pocket about $100k from the equity, and move into the other home which is fully paid for. And the money she makes from work, she can save, save, and save and wait until the housing market cools down to find a home that is more affordable. SO basically, if she goes the way i suggested, she will: 1) make about $100k from equity in selling the $450k home 2)live rent free in the other home 3)be able to save more money because of no mortgage payments 4)be able to sell the home once she finds another one she likes, and having saved up the 100k, plus her Salary that shes been saving, plus the 250k from the free and clear home, she can buy something real nice....
Im really not sure what to do...my mind is a bit fogged right now. I would appreciate any help, on perhaps different scenarios, tax implications, etc..
Thanks Alot
The paid off house, is it rented now? Can it be rented? At what price? Likewise the levered house, is it rentable? At what price?