Author Topic: investment help  (Read 267 times)

kbear

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investment help
« on: February 08, 2020, 04:11:37 PM »
Hello, so I asked a question of you all years ago and your advice really helped us out and put us on the right track - Thank you! I'm back for more help.
Our youngest goes off to university this August and our oldest is a freshman in college, so soon to be empty nesters.
We are wondering what our best option is:

1 - sell our house that is paid off (could sell for around $240,000 and invest $), move into a studio apt( cost around $950/mth) and focus for 3-4 yrs on paying college ( we did prepaid for tuition, but not for housing/food) and rounding out our nest egg.
 
2 - stay in our house that is paid off, but we pay around 7500/yr for tax/HOA/insur. This seems like best option because cost $625/mth, but you have higher bills because of size of house, lawn costs and we will need a new AC unit in next couple years. Biggest concern is lost opportunity cost from having the money wrapped up in a paid off house.

We will not be staying in this area once I quit work in 3-4 yrs. We plan on buying a camper van and traveling for as long as we are enjoying it - we are big hiker/out door people.
We have nest egg of about million and a half, with 1 million in vtsax, $240000 house and rest in cash( yes, yes I know :( ).
If we sell house, we worry about throwing all that $ into the longest bull market in history, when we are so close to retirement.
Any suggestions would be appreciated. Do we have too much in VTSAX? Any recommendations of where to put our extra $?
We thought about leasing the house, but feel taxes are high, lots of building going on in Houston suburbs- appreciation has been pretty much nil for last 3 yrs. we would be able to get probably around $1600 - $1800 a month if we rented, but again taxes, so net profit would be around $11700/yr and that's with no issues and full occupancy - feels like we can do better - right?
Any advice would be appreciated.
Thank you

Lucky13

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  • Location: Seattle, WA
Re: investment help
« Reply #1 on: February 08, 2020, 04:35:44 PM »
You may want to think of "rent out the house" as your option #3, and get more info on that scenario. For example, you mentioned appreciation is nil, what about rents? If rents are increasing, might not be a bad option. Might also be useful to have that as a home address or backup home when you are doing the camper van nomad thing... maybe people from the RV community would be able to speak to the pros/cons of renting out your house vs. selling when you go on the road.