What to do w/ rent money?

[Doaner19]

Just took in a tenant and that means an extra $550 monthly in my pocket. Wondering what I should do w/ it?

1) Put towards payoff of house. I owe $165k. Not sure this is my “forever home,” but it’s very safe, and I figure more equity can never hurt. I’m not upside down either.

2) Park in cash. I have a good cash account, so I don’t need more for a rainy day fund, but I could hold it here till the market makes it’s inevitable 10% drop.

3) Dump it into my non deferred retirement account right away. This money won’t be used till I stop working, but I sure as hell won’t be working till I’m 60. I’m hoping 50 at the latest. I’m 42 now.

Other than the house, I have no debt. Feedback is appreciated.

[marty998]

Tax sheltered retirement account is best for someone your age. You could also use it to help fund the purchase of another property.

Or else you can blow it on booze, drugs and hookers. Any leftover after that you can waste.

(With apologies to George Best).

[Wesmon]

3 is the best choice financially Good luck.

[minimustache1985]

#3 unless you have PMI, then #1.

[Doaner19]

Thx for the replies.