We just signed a Lease Opt with a family moving into our home in a month.
The deal looks like this:
220k sale
1 year L Opt
4400 Opt Money
100 per month credit
Our Mortgage payment is 1385/mo.
We are renting it out for 1495/mo.
At the end of the year when they exercise their option it looks like this:
220k less 5600 (opt money and credits)
=214,400 sale price
We owe 165k on it and 12k on a Home Eq Line at 7.75% (prime +2).
That leaves about 37k after the sale.
We are buying a home to live in for 235k. We need to do a little work on it. We have a friend lending us 25k at 6% for 12 months. We only need about 10k for the work on the house.
We also have a Credit Card with 7800 balance at 7.9%.
And a car loan for 3500 at 6.75%.
And also the HE Line mentioned above.
Total cash on these debt payments is about 410 per month. We also are saving close to 300 per month for emergencies.
WHAT SHOULD I DO WITH THE 25K? We need the 10k for repairs, but I want to be WISE!!! I want to maximize the 15k leftover. I also have the goal of getting into RE Investing full time in the near future. I want to do the best thing with this money.
Any advice would be helpful.
Thanks,
DAK