I received my inheritance from my Father who passed on Christmas day 2010. The first thing we did was pay off credit cards,which was not that much, maybe 3000, then bought a used car, (cash) for my Husband. The only debt that we have is our mortgage, the balance is 83000.00 It is a condo in fl. The housing market has killed my equity, and right now I went from 124000. in value down to less than 50,000. I was just laid off from a job I worked for 15 years, so now we are down to one income. My children are grown, and out of college, and on their own.My Husband has 1 child still living with the X which we are paying out 1000. a month for the next 3 years, then we are done with that.
My question is this...I have had this money in savings for almost 2 years now..we want to move to the beach, which is only 20 minutes east from us, and my husband works there so he is spending 300 a month in gas to and from. I have liquid cash of 260,000. right now. I am afraid of stocks, and investing in money market etc. I don't even want it in the bank, and I was thinking of paying off my current mortgage (83000.) and spending about the same amount in cash on a Townhome at the beach for about the same price paying cash, and renting out the one we are in now.
OR...
Renting out the one we are in now, and NOT paying it off, but spending about 150,000. on a house with little or NO hoa fees at the beach, and paying cash for it. This would still leave 100k in a savings acct, and I have about 28k in my 401.
I am thinking we would be saving the 300 he spends in gas to drive out there for work, and, what we rent our current condo for would pay for the dues and the mortgage. The mortgage payment is 613.oo and the Dues are 300 a month, if we rented this out , it would pay for itself for the next few years , then we could sell it and hopefully get our equity back.
I need some advise, and I hope that you can help me.