Author Topic: What to do w/ rent money?  (Read 1993 times)

Doaner19

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What to do w/ rent money?
« on: August 17, 2014, 11:35:59 PM »
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 ďforever home,Ē but itís very safe, and I figure more equity can never hurt. Iím not upside down either.

2) Park in cash. I have a good cash account, so I donít need more for a rainy day fund, but I could hold it here till the market makes itís inevitable 10% drop.

3) Dump it into my non deferred retirement account right away. This money wonít be used till I stop working, but I sure as hell wonít be working till Iím 60. Iím hoping 50 at the latest. Iím 42 now.

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

marty998

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Re: What to do w/ rent money?
« Reply #1 on: August 18, 2014, 03:44:10 AM »
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

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Re: What to do w/ rent money?
« Reply #2 on: August 18, 2014, 07:53:19 AM »
3 is the best choice financially Good luck.

minimustache1985

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Re: What to do w/ rent money?
« Reply #3 on: August 18, 2014, 10:45:51 AM »
#3 unless you have PMI, then #1.

Doaner19

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Re: What to do w/ rent money?
« Reply #4 on: August 22, 2014, 12:12:35 AM »
Thx for the replies.