My mom may inherit $94k+.

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    Default My mom may inherit $94k+.

    My dad died in a tragic car accident on October 5th. He had a few insurance policies that my mom will inherit, which would be great because then she can pay off some debts. However, we won't get it for another month or two 'cause da process is slow as fk.

    I suggested that we should invest the money into a house and rent it out. It will probably be her current house, because she still owes money on it and she would lose money if she did a short sale. I also suggested that we should move into a smaller and cheaper home. I found one that was built in 1994 and it was perfect for what we needed, but not even a week later it sold and I'm sad. :/

    Look at dis beauty:













    There are more pictures, but you get the idea. It was perfect. It was only $128k too. That's a really good price for how amazing this house is.
    League of Legends IGN: Ellista

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    Damn may your dad rest in peace
    I love the south. If you dont like it then you can kiss my redneck ass.

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    Quote Originally Posted by imtired View Post
    Damn may your dad rest in peace
    Thank you.
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    Quote Originally Posted by TuxedoSam View Post
    Thank you.
    i hope you get over it. losing a fam member is something that hurts more then any thing else. i hope all gos well for you sam.
    I love the south. If you dont like it then you can kiss my redneck ass.

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    i inherited a couple thousand dollars when my dad died too. i haven't done anything with it yet, just saving it.

    good luck getting a house. owning a house and not having to pay rent/mortgage would be cool as shit

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    Quote Originally Posted by imtired View Post
    i hope you get over it. losing a fam member is something that hurts more then any thing else. i hope all gos well for you sam.
    Hmm, I don't think anyone gets "over" the death of someone they care about. Time just makes it easier.

    No one ever thinks this shit will happen to them, but it can and it does. There are tooons of people who have both parents that live into old age, but I'm not one of them. My mistake for assuming.

    Both of my parents experienced one of their parents dying when they were both around 20 too. It's like a curse!

    Thanks for caring. :>)

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    Quote Originally Posted by TheSkald View Post
    i inherited a couple thousand dollars when my dad died too. i haven't done anything with it yet, just saving it.

    good luck getting a house. owning a house and not having to pay rent/mortgage would be cool as shit
    Thanks!

    Yeah, it would be great to not have to worry about that. The plan is to find a house for around $130k or less, pay the down payment, and pay the mortgage every month. However, also have a second house that we rent out so after so many years the first house will be paid off and then profit thereafter.

    Spending all of it at once isn't a good idea. We will have a mortgage, but we will also have another method of income. Maybe purchase another home for super cheap to rent out too. Where I live, you can buy houses for around $20k - $50k. They're not pretty, but they're cheap enough to fix up and have them paid off within 3-7 years, depending on how much we charge, by renting them out.

    No matter what conclusion we come to, I am going to make sure my mom invests it to secure her future.

    As for me, I will be staying with her. I think she would fall apart if I moved out any time soon.
    League of Legends IGN: Ellista

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    Sorry for you loss. I lost my mother right before I turned 21.

    Have you thought about going the fixer-upper route? Flipping a house can be very profitable. I did it twice with my dad and me & my fiance are planning to do it for our first house too.
    Last edited by Phanein; 10-29-2014 at 10:01 PM.
    # ᴛ ʜ ᴇ ʏ ᴄ ᴀ ʟ ʟ ᴍ ᴇ ᴛ ʜ ᴇ s ᴏ ʀ ᴄ ᴇ ʀ ᴇ ʀ s ᴜ ᴘ ʀ ᴇ ᴍ ᴇ ʙ ᴇ ᴄ ᴀ ᴜ s ᴇ ɪ ' ᴍ s ᴏ s ᴛ ʀ ᴀ ɴ ɢ ᴇ.


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    Condolences, Sam. Sorry to hear that you lost your father.

    @house: Renting out a house you already own mitigates a major risk, so that's not too bad an idea.
    Last edited by Ronin; 10-29-2014 at 10:01 PM.

    Stay frosty.

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    Quote Originally Posted by Phanein View Post
    Sorry for you lose. I lost my mother right before I turned 21.

    Have you thought about going the fixer-upper route? Flipping a house can be very profitable. I did it twice with my dad and me & my fiance are planning to do it for our first house too.
    Thank you.

    That sucks, I'm sorry. It's too bad anyone has to go through losing someone before they've reached an elderly age. Yesterday marked the second year my grandma has been gone, and while it's sad, she was 91-years-old. She got to experience life to the fullest. My dad was only 55. His oldest grandchild will be 3 in November. She won't remember him at all. :/

    I did think about fixing and flipping, actually. That is definitely a possibility. However, I noticed the majority of the houses that are selling in my town are the 1990s+ models. My town consists of many 70-year-old+ homes. People really love the newer houses, as do I.

    But I'm sure if I could manage to spend less than $30k on a house and fix it up for maybe $20k-$40k, I could probably resell it for at least a $20k profit.

    What numbers have you come out with?

    - - - Updated - - -

    Quote Originally Posted by Ronin View Post
    Condolences, Sam. Sorry to hear that you lost your father.

    @house: Renting out a house you already own mitigates a major risk, so that's not too bad an idea.
    Thank you.

    Still a bit premature considering we have nothing yet, but hoping for the best.
    League of Legends IGN: Ellista

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    Quote Originally Posted by TuxedoSam View Post
    Thank you.

    Still a bit premature considering we have nothing yet, but hoping for the best.
    The thing is, you can "savely test the water" this way. If it's working out and it's for you, great, otherwise, just sell. In fact I am very weary when I hear of people doing things like that, because it's such a lottery. Not too long ago, my parents where planing on buying a house (against my advice, but w/e.), following the idea, that it would be such great value. Turns out that the insulation of the cellar against the ground water was not working and the house was pretty much uninhabitable. Since it was newly built, that wasn't obvious in the begining. Luckly they got out and the down payment back. As a matter of fact, it's an all or nothing gamble on a single facility. Even if you are having loads of surplus money and income to boast, it's a bitter pill to loose that much. The risks on single investments are steep and much can go wrong. Usually it's rated as higher risk compared to just buying equity funds or even stock.
    That's not saying it's completely unmanagable. I just see a lot of people underestimating the risk involved. However, as I said it plays in your favour, if the first object is one you really really know and that you are not in Europe but the US, where you most likely can get rid of horrible tenants much easier.
    Just really do a complete, detailed plan (that spans over the entire time of the whole endeavour) and make sure you are aware of every possible thing that can happen.
    Also make sure you (eg. your mom) are ready to actually fire people from the place, even if you feel bad about their individual situation. You can't be to goodhearted, if you want to make money this way.
    Also do a "realistic" calculation to compare what you plan to do to just paying the mortage you already have of, with all the alternative scenarious of selling the house on short or longer notice, etc. You possibly don't gain just as much by what you are doing now, compared to clearing all debth and starting to save from zero.
    Last edited by Ronin; 10-29-2014 at 10:53 PM.

    Stay frosty.

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