Selling a rental house that will net ~$160k of proceeds, what to do with cash?
– option 1: lump sum pay down on our mortgage on our primary residence. Current balance is $748k, 5.125% interest
– option 2: lump sum invest in market: currently we have ~$1.1m in taxable brokerage and mutual funds
– option 3: keep in cash for living expenses. We are roughly $1500-2000 in the negative every month on an ordinary 2 paycheck before FICA rolls off and before annual bonuses. (We could be break even if we stopped 401(k) and HSA contribs). Current cash balance before house sale is $100k.
– Option 4… is there something I’m not considering?
What to do with home sale proceeds?
byu/Usual_Skill8600 inpersonalfinance
Posted by Usual_Skill8600
1 Comment
So you are negative ~$20k/yr, but your bonuses bail you out?
Your mortgage rate is low enough that personally I would invest rather than pay it down.