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pay off which debt-hypothetical

post #1 of 5
Thread Starter 
DH has recently been getting some inquires from other businesses interested in buying his business. Up until now he has not been interested but he is tired of the stress and if people are wanting to buy in this economy.... He wants to work this year on getting it ready to sell, he has hired a company that comes in and prepares it, lists it, etc...

My issue is that DH has very strong opinions about what we should do with that money if the company does sell. We own 3 houses, we never intended on having this many, 2 are rentals, but rather needed to move to various towns and then didn't want to sell yet, but then the market tanked and we still have them. I don't want them, dealing with them is a PIA for me, I just want to sell. He want to pay them off, and if does sell his company then we would be in a position to pay off all 3 and still put some money in the bank. I don't want to remain in our current house forever, and neither does DH, so to me it does not make sense to pay it off when ideally we would sell and move in-town. I don't want the bulk of our money tied up in real estate, I would rather have it in the bank. I am trying to talk him into selling the two rentals, I am fine holding on them until the market gets better. We do live in a high COL area, prices haven't dropped that much, some, but not much is selling. Those would be gone, then maybe selling our current house, buying one that we DO want to remain in for quite some time and maybe putting half down and then doing a combo of safe investments, some cash in bank, and some other things for the rest of the money. We have no retirement saved because DH always sunk all the money back into the company and I think this is the prefect time to smartly set us for the rest of our lives. DH on the other hand has this vision of being completely debt free, he doesn't want to owe a penny to anyone, and while I get that, I am not sure if it is the wisest thing to do.

Even though this is hypothetical at this point, I need to plan because he is so set in his ways that it could take years of talking about it to get him to come around to any other position other then the one he currently has. Any words of wisdom?
post #2 of 5
If it was me I might:
* pay off all 3 of
the houses.
* sell one or two and buy a new house that I did want to stay in right out
* then I would own 2 or 3 houses out right and mortgage free. I would live in one and hire a management company or do it myself to rent out the other house(s). With your DH not in business anymore, maybe he will be able to make a business and keep a good income renting out the two houses you would own.

*put a percentage of the income of the rentals into savings for retirement
*put a percentage of the income from rentals into a savings for upkeep and maintenance.
*use rest of income as family income.

When the market starts to improve you can sell off the houses and then invest in some other investments. Even with blips, historically the housing market proves to be a good solid investment if you have the opportunity to sit and choose when to sell.

That said, I am not an investment agent and I do not know much about future investments and I do not live in the US...so take it for what it's worth.
post #3 of 5
Maybe if he (or both of you together) talked to some financial advisors they would be helpful. They are unlikely to suggest paying off all 3 houses and keeping them.

Maybe you could compromise and pay off one house, and put the rest of the money in other investments.
post #4 of 5
If you expect a windfall get professional advice. Ask DH to talk to his friends for recommendations (this might get his buy in on talking to someone).

Simply insist the person have the right credentials/certifications/licenses and then hire them to find the solutions that you both are comfortable with.
post #5 of 5
A financial advisor/banker should also know how much tax will be taken from the sale and other fees you will encounter so you have a better idea how much money you will end up with in the end.
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