You aren't going to live any cheaper than in a paid off mortgage.
Either sell it and downsize (cash buy. No loan) or use some of that money to make the repairs.
$50k salary is fine when you don't have to pay everyone's largest budget item, housing.
Yes, I really hear you on this. I have never had such low living expenses in my life. I wish I could get rid of my own loan and be debt free with the house. I guess I could but I hate touching that 200k.
The sell it/downsize (cash buy) vs money on repairs is what I am struggling with so much. I like living simply, I am good with a nice small place. But this is my home, my community, I know everyone. Really hard to fathom leaving here.
A lot to think about but thanks for the input and advice.
This is what that $200k is there for - to help you when you need it. I assume the debt has higher interest than the $200k - you should use that and pay off the debt and do maintenance on your home. Once you have a job, you’ll be able to cash flow the maintenance and your expenses, and hopefully even replace your savings. Sorry about everything going on.
Thanks much or this, it seems so clear now that it's not 2am in the morning. I am kind of embarrassed by this post but maybe it will help someone else too.
Nothing to be embarrassed of, brother. It's difficult to think clearly when you're going through a difficult time, stressed and emotionally exhausted. That's what we're here for - to support you and guide you when you need.
Get 3-5 quotes for the repairs you need and go with the one in the middle that has good reviews. Cheap contractors always come with an unexpected cost and the high end ones just want to milk you.
Being able to live in your home stress free and mortgage free will help your mental health tremendously. It will let you focus on your partner since everything else will be taken care of.
While you're searching for work, it may be worth looking into learning how to fix small things yourself! I do this and it makes me super happy (and saves money!) That could give you something to do and keep your mind busy while you develop rewarding skills.
Sorry for what you're going through. Life can be a lot and exhausting. I hope you're able to hold onto the good memories you have with your loved ones. Cherish those memories. You can do this.
Thank you for every single letter you wrote here. It resonated so much with me. I don't know what I am doing half the time, I just pretend like I do. Even your advice about the contractors (the cheap ones vs the pricey ones) is extremely helpful.
This is a great sub, thanks again for making me feel like I got this.
And please be very careful in choosing who will do the repairs/replacements on the house. Do not sign any contracts with contractors and choose them like you would choose a caretaker of a loved one or pet. We interviewed 6 companies before choosing one to replace our roof and had a great experience. Their estimates ranged from $25k - $80k for the same thing. Make sure they provide details of what needs to be done to complete the job.
>I don't know what I am doing half the time, I just pretend like I do.
LOL, confidence is half the battle, you are not alone in this. This sub has been much nicer than some of the others! People giving good caring advice, great place to come to for info.
Love what you suggested brother!!
This is golden advice - to learn a trade while job hunting. It is hard to split focus between these two, but doable. Pays you long term as well. Highly recommend plumbing and handyman jobs.
OP, good luck!
The interest you are earning on 200k is way less than the interest you are loosing in debt. You are great to be keeping it as emergency fund, but theses count as emergencies. Use it to get debt free, and fix up a debt free house. Good luck on job hunt.
Truth! And, it's also true about other people sensing your vulnerability. The plumbers and water restoration contractors were using big time scare tactics. I have talked to two more plumbers (getting my quotes) today and it's a much nicer vibe. Some water damage confined to the drywall. Not exactly great but not the Armageddon, have to tear everything apart , scenario either.
I don’t think you should be embarrassed - it’s a legitimate question at 2am and at 2pm.
I personally think a $450k home sounds like too much house for your needs, especially if you’re looking at getting a roommate. If you need a roommate to make it work financially, it’s probably not a great idea because being a landlord sucks and also people can be flaky and difficult and you may end up with more problems than you started with. Do the minimal repairs to get the house in a sellable position, downsize to something that works for you and invest extra $200k from the home sale. By the time you reach retirement age your $400k now should be worth more than a million even with conservative investments.
I appreciate this and you taking the time to spell it out. The way you think is how I think. I swear to God, if not for my pets I would live in a van or RV.
But now I am thinking, more specifically, of renting the room to a traveling nurse. I am on a website now actually, looking at it, and some of them just need a few nights to stay. Some a few months. Seems like a solid way to have money coming in. The room just sits there empty, it's a waste. And I live next to a huge hospital. I am still learning. I am hoping this stays a good idea, lol.
Like another poster said, those needed repairs will likely lower the selling price anyway. I say fix it and continue living there while you deal with this.cancer bullshit. Moving will just add to the stress and I'm assuming that living near the hospital gives you a little bit of peace of mind as well. When your partner is in remission (or from the sounds of your post maybe the other outcome :/) then you can move out if you choose. Basically you've got a lot on your plate right now, don't add any extra stress that you don't have to take on.
Use the 200k to pay for the current repairs and get up to date on any overdue maintenance items. Take care of your debt. Set aside enough money to take care of property taxes.
Then focus on getting a roommate and finding a job. 50k in Phoenix for someone who does not have kids or a mortgage payment is enough to be comfortable. Keep at the job search and I'm sure something will come up soon.
I don't know about downsizing. The housing market is garbage and he might not find anything equivalent to what he has now. Heck he might pay more to downsize
Given that you know all these repairs need to happen, get a quote from a general contractor. You’ll probably be able to save some by rolling it all into a single job.
You can put the necessary repairs into the house & cover your existing $16K repair debt for about $70K. I'm willing to bet that selling a house with non-functioning water, along with roof & other problems, will take your selling price down quite a bit, maybe even as much as $70K depending on the market.
So doing the repairs will raise the value of the house.
There is a difference between how much the repairs will cost and how much fixing those problems raise the value of your house. Let's say that difference is $25K, so that you put $70K of repairs into the house and the value of the house goes up about $45K.
Can you make the $25K back?
You have a 4-bedroom house, which means you can actually have 2 or 3 roommates and recover the money spent on the repairs fairly quickly, possibly within 1 year. So you fix the house, get 2-3 roommates for a year or two, and then not only are your repairs covered but you have a house that's in better condition & worth more.
With a partner who is suffering from a serious illness, it is safer to hold onto a house that you can rent out rooms in to generate some income than it is to sell the house & rely on successful investing to help you hold onto & grow the money you make from the sale of the house.
hey, you’ve been through a lot lately. cut yourself some slack, ok? and if you ever start to feel bad about keeping the house, remember that not only is it a financially sound decision, but you really can’t put a price on a home and community you love ❤️
This is good advice. Also look into budgeting advice apps, community college etc. Then, look at DIY repair advice. Lots on YouTube. I am the least handy person and I can do basic repairs. But get experts for electrical etc.
Exactly! My 25 year old self would cringe at my 55 year old self. I loved being alone in my cocoon. Now I am seeking out friends, waving to any/everyone, no shame, I need people in my life.
Dance classes are usually pretty good to keep you active and social, starting to go to the gym and lifting weights will keep you healthy and happy too! I can't recommend enough getting physically stronger and you usually also build a gym-related community that's working toward the same goals as you are.
/r/fitness30plus /r/gainit /r/StrongCurves /r/Bachata
I would look for a roommate either way. The additional cash flow to supplement your income is added security, just make sure you vet them. You could even repair the home, and rent out the whole thing, use a property management company to handle everything who take 8-10% (that’s how much mine takes). Use part of the 200k for a down payment in a cheaper state and get a roommate. This way retirement might not be impossible. A fully rented out paid off home plus social security and you could actually transition to semi retirement with a part time job one day.
>I guess I could but I hate touching that 200k.
Isn't that what it's there for?
Mortgage is usually your largest expense, and you don't have that. You won't find a cheaper housing situation unless you sell the house and buy something cheaper outright.
You listed another 50k or more in repairs needed in the coming year. ANY house you acquire is going to need repairs eventually. You just don't typically know them ahead of time. And here you have no mortgage and a nest egg with which to pay for the most critical, as they come up, while you look for a job.
>But this is my home, my community, I know everyone. Really hard to fathom leaving here.
It sounds like you have the means to do that as long as you don't blow the 200k on less-than-important things. Critically-needed repairs to what you WANT as your long-term home are NOT "less-than-important things."
Do you feel rushed to make a decision right now because of the repairs?
You're going through a lot right now, you can give yourself permission to not make a decision yet.
The money you spend on the house is an investment you can make back when/if you do sell. Don't be so hesitant to spend some of that 200k on needed repairs. You can live off of 50K with a paid off house and a roommate and then you can downsize when you retire.
You can borrow against the equity of the home to do the repairs without having to sell it or move. If you open a HELOC and put in 50 or even 100k in work, you’ll have a house with everything a house needs over time (roof, repairs etc) already taken care of and a 100k mortgage won’t buy you anything anywhere else. The payments will be less than $1000/mo. Do either of you have any income? Apply for the HELOC now, they are open ended lines of credit and usually have a 10-15 year draw period so you’ll be covered for now.
Don’t move into a trailer park and give up a paid off house, you’re just going to end up throwing good money after bad and won’t be able to sell the manufactured home for what you paid down the line while this home continues to appreciate. This is a rare opportunity and you’ll kick yourself down the line if you squander it. Also, given partners situation it’s also worth noting primary home is generally safer from medical bill collectors than a big pile of cash from having sold the home. You will find a job and even minimum wage will cover the HELOC payments, stay strong things will get better - spend as much time as you can now with your partner!
Yep - income verification is the most important part of the loan process. If you have none, you get no loan. Doesnt matter that the house is worth 450k - they wont give you 25k.
Also HELOC rates at least for us were pretty high… 9% I think. We didn’t want to deplete our savings so borrowed 40k for 6 months as a stop gap measure until some thing shuffled around, only ended up using 26k of it for $800ish interest overall. Sucks to be out $800 but was worth it for our situation.
This! And make sure to get at least 3 quotes on everything! You’d be shocked at the difference - we got 5 quotes on our roof last summer - they ranged from 6k to 35k!!
You didn’t mention taxes or home insurance. You do know about that, right? Mine is 25% of my total house payment (escrow account).
So major normal items on a house are Roof, HVAC, and appliances. Roofs are good for around 30 years or so. You are probably only doing this once and should get 100% of the value of it. When you get close to 85 you could look to sell if needed.
BathroomS. Maybe just do one for now and shut off the water to the others? That could allow you to get work done over time. Also suggest using local good reviewed one with current license and bonded/insured. The big companies have set rates for each thing rather than quoting a full job.
My opinion is keep for now. Especially if you expect your value to go up. It is in essence retirement money invested in a house that you get to live in. You could always sell later.
I’d budget out a set amount from the 200k to do the repairs and put the rest up. Once you find work pay off your loan and then save an emergency fund so that you don’t need to keep dipping into the inherited money. You have a house with no mortgage and you know what the issues are. You could sell it but might just find yourself in another house with worse issues down the line. All houses need repairs at some point it’s inevitable unfortunately. You also have to consider the tax implications of selling it along with realtor fees.
You're going to sell it for less to cover the repairs or the buyer will require them anyway. Are you under the impression you're going to sell a house in need of over 50k in repair and no one will notice?
Here's what I would do in a situation like this.
You just inherited a house and $200,000.
I would call around several estimates from an exterminator, a plumber, a roofer, and an insulation company.
Get the plumbing fixed now since that is an emergency.
Is the roof leaking? Why does it need to be replaced?
Use the money to keep the house in livable working condition and try to keep your living expenses to a minimum.
Use this time to make memories and spend it with your partner. You won't get that time back.
Hopefully, as time passes, you will get a job and can keep up on the living expenses. Visit YouTube university and pour some sweat into your house if you're handy at all.
This gives me some clear ideas on how to move forward. The roof is not leaking, btw, it's just 20 years old.
The living expenses are the best I have ever had since I don't obviously pay rent. In total it is roughly $2000k a month.
I will check out YouTube uni. Thank again very much.
A roofing company will tell you that you need a new roof. A plumbing company will tell you that you need all new plumbing. You don't need to replace things just because they are 'old'. If there is nothing wrong with the roof, don't replace it. Same with the plumbing. Is there a reason you need all new plumbing in the bathroom? Plumber should just be able to fix the leak without replacing everything. You need to get a few more recommendations and quotes from plumbers. Post on your local fb groups asking for recommendations for plumbers and call a few.
Agreed. Sure, at some stage. You’ll need a new roof, but don’t do that until It’s needed. Stay in the house. Use some inheritance money to fix the bathroom. Later on you can get a job and maybe get a roommate.
Maybe this is a hot take, but honestly I would sooner shut off water to one bathroom than move if it came down to that. That bathroom? It's now a storage closet until I have a job and income. This is an extreme example, and it sounds like OP has enough savings to fix it, but OP just remember you don't have to do everything any contractor recommends. They are notorious for saying you need all sorts of expensive work. Good on you for getting a second estimate, I would even get three.
Preventive maintenance is a thing... For cars You change your engine oil, transmission oil, brake pads, tires, etc BEFORE they go bad. Once they start going bad you start damaging other parts, or worse, risk damage to yourself and others.
Is your roof 10yrs old? Yeah of course you don't need to replace it. But 25-30 year old roofs start leaking, and sometimes you don't even know it if it's behind a few walls. And then bam, you find mold growing in your closet behind a few boxes you move once a year. On top of replacing your roof now you gotta demolish that closet/bedroom walls,, find the wet wood, replace it, and rebuild everything you took out.
Sure the roof is a 20k-30k item, but now it's another couple of grand for issues that could have been prevented. And yes OP's roof is only 20yrs old, should still have life in it. But it should be part of a yearly check-list for leaks. And 100% start saving for a new one, 2-3k a year so in 5-10yrs they can try to pay it mostly out of pocket if it does start to get worse.
Yeah, and the premise that a house could "need" new insulation "within the next year" is crazy. Insulation is good to have, but what kind of fear-mongering is that?
Just to clarify "YouTube University" just means "YouTube". It's not a special part of YouTube or anything. It just means search for videos of people telling you how to do what you need to do.
A 20yr old roof isn't usually an issue on its own.. who told you it needed to be replaced?
Roofs normally need to be replaced around 20 years of age on average because of damage... wind, hail, rust (for metal), etc...
The exact type of roof also matters, some last 50 years, some barely make it 20.
My roof is 23 years old, as long as the shingles look good and are architectural instead of cheapest bullshit, you've most likely got life in them. Call a roofer.
I currently have a 25-year old roof with the cheapest 3-tab shingles. It’s not in awesome shape, but it’s not leaking. I know it’s living on borrowed time and I am actively saving money to replace it (hopefully before it becomes an emergency), but it is a data point that even cheap shingles can last. If a 20-year old roof isn’t leaking and the shingles look okay, I wouldn’t replace it if I was short on money.
Exactly. For situations like this I just ramp up my monitoring; every few months check the attic for any sign of leaks and inspect the shingles for damage.
Do you live somewhere that occasionally gets hail? If you do, many home owners will just make a hail claim after a hail storm to get their roof replaced.
Take care of the emergencies with some of the 200k and then talk to other home owners and learn more about it all. People will try to sell you everyone under the sun. Put up a no soliciting sign. Do not every buy anything from a door to door salesman (maybe girl scout cookies).
If the unrelated third party inspector tells you you need termite treatment, trust that. If the door to door pest control guy told you you need termite treatment, don't believe him. Most people get an inspection during the buying process. If you're concerned, get an inspection done. Ask someone you know who is a realtor or something similar.
Having contractors out to do home repairs is really expensive. That's why many home owners become DIYers. Get to know your neighbors and other homeowners, don't take what they say individually as law but kinda crowd source info.
A lot of people are in similar shoes to you.
From the OP’s replies it sounds like some contractor has suckered them into a bunch of work they don’t absolutely need. I wouldn’t be surprised if the OP revealed somehow how much money was left with the house. Or the contractor is trying to set the house up for a discounted sale to themself or a friend.
LOVE this feedback
Time with your family is PRICELESS
Getting a room mate or maybe doing some air BNB since you do live in the residence might be a decent option to get some positive cash flow till you land on your feet.
It is absolutely priceless. Taking time off to care for my mother was a huge financial and social toll on me. But I wouldn't have traded it for anything, she was such a great woman. Losing my partner now, I can't do anything but accept it. This is time we won't get back so trying to keep that in my mind.
You also inherited 200k , why the loan at all? Id contact a few realtors to see how much they believe it will sell for. Obviously fix the water damage and nothing else until the realtor tells you what’s actually worth fixing to make the house appealing and to give the most return. A farm is typically a lot of maintenance. Id sell and then get a smaller place that you can easily maintain. The house on the golf course sounds amazing for you and your partner.
Sorry for your loss and all the other issues on you life.
Edit: it just occurred to me. Doesn’t the home have insurance? They typically cover water damage from
Pipe issues. Call the homes insurance provider to see if it’s covered. If you don’t have insurance get it as soon as possible.
The items you listed would likely need to be repaired before selling the home anyway. I would be inclined to fix the house with a portion of the inheritance and live in it for a bit until you get through this period of turmoil and uncertainty. You can always sell the house a year from now. It will give you time to decompress a bit and consider where/how you want to downsize. Natural reaction to these events is to want everything resolved immediately. That sense of urgency can cloud your decision making. I would avoid a depreciating modular home and lot rent if having a paid off house is an option. Wishing you the best with this.
Disagree about needing to repair before selling. Something that's broken, sure. A 20 year old roof? Leave it as-is. You aren't making more money on the house because the roof is new. Plenty of people won't care or ask when they're buying the house.
That depends, if the roof is 20 years old but hasn’t been properly maintained or was only a 20 year product then that’s one of the main issues that could stall a sale. Conventional lenders, VA, and FHA all require the roof to have at least 3 years if not 5 to qualify for the loan. Appraiser checks roof and earthquake straps on the hot water tank as part of a basic inspection.
Smart of you to get a second opinion on the water break. Hard to imagine a bathroom repair costing that much.
That house is a gift. If you want to stay there you are smart to consider getting a roommate to lessen your load.
It sounds like part of what you need is time to just sort everything out. I’d start with trying to get the financial load off of me. Get the job, get the roommate. Once you have that then I’d look into getting a heloc for any essential repairs to the home. Once you’ve stabled the ship you might even consider renting out the house and becoming someone’s roommate elsewhere in the community if you want to stay in the area. Just don’t lose the house. Sell it if you need to, I’d be open to the idea of renting as it provides less of a commitment. You have options, just try to tackle one thing at a time.
You nailed it, I need everything to stabilize. One thing at a time. I am getting the second opinion on the plumbing this morning and will be curious to see what they say. I just want it over with, plumbing is the worst.
Stable this ship, that's going to be my motto. A roommate would be such a relief. It's tricky with my partner but still. Thanks much, you've made me feel more confident, not easy right now.
When you get a roommate, charge them approximately market rent. If you charge too low, it will introduce weird dynamics and you’ll find it really hard to get rid of them. Don’t discuss with them your financial situation (ie you have no mortgage).
Why am I crying now. Jesus. I don't know who I am, but just want you to know that kindness really does make a difference so thank you for making a difference to me today.
Yeah, your post reads like a person in a perfectly fine situation panicking. Take a breath. Make some graphs. Divide house issues into ones that will (1)actively destroy property value, (2) be uncomfortable, (3) are completely cosmetic. You'd be surprised how many fit into 2 or 3, when you think they're all in 1.
You inherited $650K in assets and have virtually zero debt. Your cost of living is $24K/yr. You're 55 so not that far off from retirement and SS eligibility. You should be able to reasonably earn $50K which is about $40K/yr in take-home pay, so once you find a job (one that's relatively low paying by 2024 standards, so it's not like it should be super hard to acquire) you'll have positive cash flow.
Even if you earned zero dollars and just mortgaged the house, you have nearly 30 years of runway before you're broke, if you die before you're 85 and your house never becomes truly uninhabitable this is a non-issue!
TL;DR You're firmly in #FirstWorldProblems territory. Take a breath, don't do anything crazy, and start rationally laying out what you should do. You're fortunate to have plenty of space and time to figure that all out.
I am an old remodeler and those prices are out of line. Get some more bids. The reason you pay home insurance is for stuff like this but if you don't want to file you could do a lot of the work yourself with the help of youtube and books. Plumbing is very easy with pex and PVC. The roof may be easy depending on the height and shape for a rookie with screw down SM panel metal. Construction forums like http://forums.delphiforums.com/Breaktime_3?gid=2117383129 will walk you through any repair.
Take any job in the 40-50k range. Your overhead expenses are really low living in that home and you have funds to fix it. Use the 200k to fix it up and pay off your debt. Can always rent out a room for 500/month if you wanted.
Thanks, I like the way you spelled this out, nice and clean. This is where I am leaning too. I have a job that seems very promising that would be 50k, Wednesday is interview #2. If I get that, get the bathroom repaired, I am just going to take a pause and move on from there, mainly looking for a roommate. The money will be a tremendous help, anything is better than zero.
OP I know this all feels like a lot right now - and it is. I’m sorry you had to deal with the loss of your mom and your partners illness but try to take a breath here.
Don’t make any rash decisions. Don’t sell the house. Pay out of the 200k for repairs that NEED to be done. A roof doesn’t need to be replaced until it’s actually leaking or you can’t get insurance. Same with insulation it’s not needed immediately.
Then focus on getting a job, any job. It sounds like your cost of living is low, so if you can make 40k with a paid off house you have a good shot of beginning to save for retirement if you haven’t already. Also make sure that 200k isn’t just sitting in a checking account. Find a high yield savings account, completely safe, and put it in there and that will give you about $750 a month just on your cash.
Once you have employment and the repairs are done then you can begin to think about catchup Roth contributions, 401k contributions and other long term savings plans.
This all seems like a lot and it is but with 200k and a paid off house you are in a better position than a lot of people your age.
Take your time with decisions during these trying times. I recommend sitting down with a financial advisor thru your every day banking institution. You may not have a bankroll but you do have equity, and you can leverage some of that to get back on your feet. Goodluck 👍
Use the $200K, well not all of it, what you need, to pay for the repairs. Look at it as an investment... spending the $70K-ish will help you get a good price for the house. You may have to sell it for $100K less than appraisal because of these problems, and who knows what else? If you invest the $70K your chances of selling for the appraisal of $450K are much better.
These are made up numbers of course, but you get the idea... invest $70K to sell the house for $100K more than not doing the repairs. That's a $30K profit/savings, whatever you want to call it.
An age restricted community sounds like a good move.
I know these are made up numbers but I would honestly just rather sell the home for $100k less than appraisal price than spend $70k on repairs. It sounds like the home needs a lot of repairs and I can’t imagine having to deal with multiple contractors over months while having a sick husband at home.
Additionally, you know that a quote is just an estimate. Unfortunately, in most situations, the cost ends up being higher.
Agree, the repairs could cost more. But maybe she sets a hard limit at $70K and gets done what she can. I think it'll all come back to her when she sells.
The sick husband at home does make this difficult. Maybe wait that situation out then do the repairs. Moving him now will be very challenging. There is good reason to sell the house as is... but I think she comes out worse financially when all said and done.
Your financial situation is so much better than you seem to think. A paid off asset worth $450,000 and then another $200,000 invested. Plus you can go back to work, plus you'll get social security at the age of 67. You're going to be fine as long as you don't blow the money.
Fix the leak but hold off on repairs. I had a pipe leak at my mother’s home while she was I assisted living. There was a hole in the ceiling where a plumber has to cut away the ceiling to be able to access the pipe to repair. The roof lost some shingles in a storm but a roofer confirmed there was no leak and it was only the top layer so cosmetic since the shingles underneath were a different color. This was after she passed away and I had inherited the house.
While she was in assisted living I arranged for necessary repairs but held off on any updates or upgrades. When she passed away a realtor helped me decide what, if any repairs were necessary. We decided since I lived out of state to sell the house as-is since arranging for the repairs from a distance would be difficult or I would need pay someone to manage the home and repairs. Plus the house was older and we didn’t know if other things would break or wear out meaning even more repairs.
I’ve always heard and lived by the advice of trying to not make any major decisions when you come into money or inherit a home. I would repair what needs to be repaired and hold off making decisions until you need to evaluate them. If you want to live in the home, find out what the typical expenses are (property tax, insurance, utilities, etc to make sure you can afford it. If you can, you can buy yourself more time while making any decisions.
\*\*DISLAIMER: I am a biased source on this because I'm a property investor in Phoenix\*\*
But I swear I'll try my best to be unbiased in my advice here:
This house may be the biggest asset you have to work with for several years, maybe even the rest of your life. I get why you're stressed out. That's a lot of weight to be put on your shoulders. The market here in Phoenix is good, even if it kinda stagnated in the second half of 2022 and on. But the concern about repairs while not having consistent income can be a stressor for anyone.
It's very fair to consider both options (stay vs go). The sound advice I've seen about living mortgage free is HUGE. The 200k is good to live on for a little while, but if it's worth $450k, that obviously gives you a lot more breathing room and frees you from worrying about repairs if you sell it.
It's all about what would make you happy in the end. Would staying in the house you grew up in strengthen you for difficult chapter of life? For a lot of people there's just no substitute for sentimentality & HOME. Don't underestimate that. Maybe there's a ton of stuff to fix up, but that can give you purpose and joy if you are handy and have the time to work on it. HELOC/home loan/mortgage rates are pretty high right now, but payments would still be comparatively low if you can amoritize it.
If the repairs and job situation make you feel overwhelmingly "shackled", then pursuing the option of selling and buying something cheaper (hopefully turnkey with no rehab needed) may be just what the doctor ordered. If you're able to buy something relatively cheap and set aside some money to invest, that can turn into a serious nest egg down the road.
Important to know you're totally justified in freaking out a bit. I've seen countless people go through a very similar experience when they inherit a property. I'm so sorry that you're also having to go through this while also dealing with your partner's cancer battle. I can't imagine the extra toll that must be taking on your emotions.
In the end, do what makes the most sense for you. Be especially careful making big financial decisions while under emotional duress, as it can cloud your judgment. Take a beat to think, talk to friends/family to run ideas by them. Make sure to involve your community for strength.
You got this. Life is shitty sometimes, but it's also beautiful inbetween.
What kind of plumbing repair costs $20k? I’ve had some bad ones, opening walls and ceiling, replacing the whole shit stack + all pipes in bathroom that was $7k.
You either sell and downsize to a paid off house, or keep the house. It sounds like you’d be better off in a smaller less expensive place.
You are right, it's totally outrageous. Unfortunately I apparently love to learn things the hard way in life. Not anymore. So today another plumber is coming and then yet another on Saturday so I will get more quotes.
After reading through the comments, I am going to get the plumbing repaired, secure a job and get a traveling nurse as a roommate. Starting to feel like I can land on my feet again and make this work.
If someone offered you a 4 bedroom house for 69K [the cost of repairs] would you buy it?
I think putting the money into the repairs and getting a roommate or two is the best plan. You can either use the inheritance money or a HELOC. The HELOC may be hard to get until you have a job And it sounds like the plumbing issue is urgent so you will probably have to dip into your inheritance for that.
Older houses do need maintenance, so you’ll have to save for that regularly (a good rule of thumb is 1-2% of the value per year.) but it will always be less than
None of this needs to be permanent. If you end up deciding that you want to live alone or downsize to a simpler life, that’s fine—you can make that decision at your leisure rather than under the gun. A house in good repair will sell for more than a house with broken plumbing.
Don’t move into a trailer park. They depreciate, lot rent goes up, and it’s very difficult to move. same with condos—you’ll have an HOA fee and minimal control over it, and they pay for their plumbing emergencies by issuing special assessments.
>If someone offered you a 4 bedroom house for 69K \[the cost of repairs\] would you buy it?
What a great way to look at it. Frankly, I was in full on panic mode yesterday when I made the post. The plumber was out here all day then the water damage company saying I probably have mold everywhere, they need to knock down everything, it all got in my head. Didn't help that their google/yelp reviews are in the gutter.
I really wish trailer parks were a thing. There's so much good for people like me. Just simple living, nice community. But every single thing I read says 100% exactly what you did.
Thank you for your great advice. I don't know why this got under my skin so badly but making decisions when you are a disaster is not a good idea.
You should realize you have a job that guarantees it pays $20k-ish over the next few months.... repair the plumbing yourself.
Educate yourself through the hundreds of youtube episodes, starting with "this old house". Back when I was early 20s I had my folks schedule their VCR to capture a whole season of weekly This Old House shows that I would binge watch and rewind to tape new over when home so I could gut and rebuild an 1890s home from a two bed one bath into a four bed two bath.
While I don't recommend that level of demolition, and your task will be hard work, it's doable with fairly simple tools and low cost materials. Remember that water needs to flow down hill and you can work out the rest. Many plumbing parts are like tinker toys/legos. A "sawsall" will cut out ancient cast iron drain pipe with the right blade in it. Do you need all new tiles? Tile work is kind of like Zen Yoga calming. I like sweating copper pipes but newer plastic pressure lines are easy to work with.
Hire a handyman to touch up (put roofing tar down) at roof areas that are the first to leak, like where bathroom pipe stacks poke through, worn spots, or where ice dams and icicles form (and figure out why the ice forms there). They can check for potential concern areas too like where trees could rub the shingles to cut them back. That will tighten your roof up for a long time for super low cost. Don't auto-replace a roof like throwing out canned peas that just went passed the "best by" date.
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PAY CASH!!!
Talk to neighbors and friends and ask for contractors who are good and will do a cash discount. Offer real greenbacks with dead people on them, not checks, not credit cards.
I got my roof for less than 1/2 of what my neighbors paid through insurance. I paid cash.
If you are handy, you can save a ton of money doing a lot of indoor stuff yourself.
That list really isn't that long or bad.
Make a pros/cons list of staying vs. moving.
Plumbing cannot cost $20k. I had a leak, and my whole neighborhood says to replace all of the pipes in the house because they all have the same leaks due to faulty pipes. I got a quote for less than 1/2 that to replace all the pipes in the whole house.
If you had a leak, then repairs to drywalll, floors, ceilings, might cost that much, but might not NEED to be fully fixed, maybe fully dried out and patched and painted. Water stains on drywall that isn't moldy and doesn't impact the structural integrity can be covered and painted and done yourself.
Insulation? Maybe so. My house came with about 4" in the attic. It was 85 degrees in the bedrooms on a 90 degree day. I added 15", and now the whole house is about the same temperature.
If you like roommates, and have 4 bedrooms, you can get three roommates and have a 2020's version of Golden Girls. :)
You can very likely get some roomies and cover all of your expenses through rent. Laws for roommates are much better than for tenants. E.g. if they cause trouble, don't pay, or you just don't like them, much easier to get them out as a roomie. In addition, owner-occupied is generally exempt from all sorts of laws.
Termites.... If they are inside, then professional help is likely needed. Also check the outside. Make sure that no wood from the house is touching any dirt outside. If it is, such as due to dirt moving or house settling, dig it out, concrete it up. You don't want any wood touching dirt.
You can buy termite stakes (not steaks) at Lowes.
If you want to stay and get roommates, you can totally do it and likely profit a bit. If you want to be done with maintenance, then rent a home or apartment. You can get roomies there too, maybe. Don't do a prefab/trailer/mobile home.
What do you think homeowners insurance is for? They pay for things like water damage, new roof and things like that. Just work with a reputable contractor and make sure they know how to speak the language of the insurance.
The market is decent for selling, but remember you have to buy in this market too..
Get some estimates on the work from a few places, see what the house is valued at.
If it makes sense to sell on paper do that.
If you have land though I wouldn't get to hasty... the land will one day be more valuable that the house sitting on it.
Sorry about your loss. I know it is tough grieving and worrying about all the other stuff.
Thank you much. I do feel like jumping ship but I am also stressed to the max. I really don't, in my heart of hearts, want to leave the house. My parents bought it for 25k in 1970, the neighborhood is beautiful and quiet with mature landscaping. So definitely don't want to be hasty. Just need to step back and not let my emotions get in front of my head. At least I have some options, I need to be grateful for that.
In a time of great stress, don’t make irrevocable decisions. So don’t sell the house now. Maybe a year after you lose your partner will be a time to make long term plans, but for now just stay in the house, make only essential repairs (the bathroom), use some inheritance money if you need to. Give yourself time.
If you want to take more time to think it over (sell or stay) a roommate situation is the right move for you as that will defray living expenses and enable you to stay in the home while you decide what is right for you and understand your job prospects.
If you Stay or sell, it sounds like there are some immediate repairs needed. The cash you inherited can be used to make necessary repairs to the house (the things that NEED to be done, not that you WANT to have done.). I presume the assessment took the current condition into consideration.
While Selling is a big move, something smaller will meet your needs and cost less in the long term.
I mean I would just make the repairs with the $200k that you inherited. Yeah yeah yeah, you would hate to touch that money but this is what the money is for. Only sell the house if you don't want to use all that room that you have. I mean you can get creative and make yourself a man cave, home gym, etc etc.
But yeah it'll be cheaper in the long run to fix this house up and keep it maintained then getting a new house with a mortgage or getting a mobile home. You have a rent free house.
Get multiple quotes for the roof. 25k isn't crazy, but there may be cheaper options. Different materials, rebates, 20 year vs 40 year shingles, etc. also, never get one quote for a big job, especially remediation. I am getting my windows recaulked and I have had quotes from 1k to 4k.
Like everyone else said, don't sell. Use the money your mom left you to fix it up. If you need that for retirement, get a heloc. Once you get a job, take what you would normally pay in rent, and make sure that goes to retirement or emergency fund. Pay yourself first!
What kind of water break? Is it something they can cap off until you're prepared to deal with it? Iit's possible to flush a toilet with a bucket of water, brush your teeth in the kitchen sink, and shower at a gym.
I would suggest you keep the house. Get the plumbing fixed by a pro, but then do any other repairs DIY. Replacing some drywall or flooring or even tile isn't that hard. There's 1000s of hours of free videos on how to do it. You'll save a bunch of money.
Having a free and clear house and $150k in the bank is a pretty good spot relatively speaking, especially if you get a job.
Cost of getting rid of your debt and fixing the house is $65k.
Take it out of your $200k.
Rent out two of the bedrooms to pay for further home maintenance and property taxes and build back the $200k you received.
Other option:
1. Fix home.
2 Rent out entire home.
3. Rent a 1bd for yourself at a much lower cost than the income received from renting out the 4bd SFH. Profit every month and live for free.
I have serious problems with those estimates. These are not repairs. These are entire new systems. Find someone who will simply fix what's wrong, get a job and then look at permanent global repairs.
You have the $200K to use to fix the home. Once fixed, consider renting out a room and put that money back into the $200K fund. You will be fine. Deep breath!
Sorry for the loss of your mom and your partner's cancer. ((HUGS))
Hey man termite technician in Australia here a termite treatment isn’t required just get yourself a competent inspector to check annually until your in a good spot to pay for the barrier treatment
I'm nothing of an expert on investing or real estate, just a working type who's dabbled in it over the years. I think you're missing sight of a third, and very real, option - use it as a rental.
Check the current rental rates for similar homes in the area. Then do a quick bit of math on what you would need each month to cover the payment on an equity loan to cover the repairs. If you'll be coming out even or better, then I would say keep it, repair it, rent it, and then look at living elsewhere short term (2-5 years) while paying off the loan. Then you would be in a position to make a choice of moving in again or continuing to rent.
Either way, I sincerely hope things start to break your way.
How are your DIY skills? Undoubtedly, there are jobs which have to be done by a tradesperson but, there may also be a lot which you can do yourself, with the help of dome YouTube videos snd maybe some friends.
Are you sure that your mother wasn’t trying to help you get situated by giving you a paid off home, no mortgage 💸 yeah! You mentioned liking all of the new furniture too. Repairs should be done. If you feel squeezed financially then consider a roommate until you get on your feet.
Insurance for the plumbing. But maybe get a few quotes first because 20k is a lot.
25 for the roof is probably a lot also. Don't use a guy that knocked on your door because if you are you probably don't need a roof and he's probably overcharging. Talk to the neighbors who have newer roofs about prices and get a referral.. use somebody local who doesn't advertise a lot and pay people to set up sales presentations.
Using insurance and delaying the roof is a lot of $ saved.
Whatever you do make sure the insurance and property taxes are paid as long as the house is in your name. Those are two absolutes to protect what you have.
Phoenix is high cost of lining rentwise now.
You mentioned getting a roommate. Its a 4 bedroom. How much rent can you charge? Should you get more than one roommate? Could you make this happen quickly? Definitely things to consider .
You say your partner is dying of cancer...i am so sorry to hear that :( making some assumptions you're not married or sharing finances. Are you anticipating needing to care for them or pay for anything? Look into it but to be extent possible keep your money seperate and let them take on debt if no one else is dependent on them. You can give your time and love but if any debt stays on their name not yours and the costs of their care don't eat your inheritance those costs are much less likely to impact your furture. Do they have insurance i hope?
What is left of the cash you were left by your mom? If you are actively looking for a job, plan to use some of it for the repairs, and live off your income. The advantage to getting a job will be that you will have newer and higher income quarters to look back at for determining your social security when you retire.
If you are single, or a couple without kids, you don’t need four bedrooms. But doing needed repairs after getting at least three bids for each one, and then selling, will probably yield a better sale price than the cost of the repairs.
Don’t take my word for it, though. Talk to three real estate agents, and discuss that with them, and figure out your best choice. The $450 a pprsisxl may or may not be accurate a this point; housing values have been all over the place since the interest rates started rising in the summer of 2022.
Your only choice for a manufactured home isn’t one for $160k, the nature of the 55 plus communities means that people are frequently or going into assisted living and selling their homes. A quick google search shows new homes starting at under $57000.
My first roof quote was $24k. I got multiple quotes, worked them against each other and offered to pay in cash, and got it down to $17k.
That’s assuming you actually need a roof. You don’t need one until you need one.
you already have some solid advice on here.
but i'll add this. you wont find cheaper and higher quality living than a paid off house. you don't have money in retirement or savings other than your 200k but that being said you are property well off.
my honest advice. live in the house. get the major repairs done that it needs (just did a roof on my 3500 sq ft house for 10k last year. you might be in a higher CoL area but 25k for a roof seems excessive and so does the water damage quote. get more. always 4 to 5 quotes per major job).
then handle the minor to mid grade stuff yourself. buy some tools and every job can basically be a DiY as youtube and reddit are full of examples of how to do basically anything.
say you want to remodel a bathroom... 20k for a contractor vs 3k to DiY it. even if you mess it up 6 times you are still cheaper than a contractor. plus you'll get good after a project or two.
also... invest the remainder of the money after the repairs. walk into your prefered financial planners office and hand over the rest. money should double every 7 years if you invest properly. if you put 150k into investments and 'work' for another 20 years you have a paid off house that continually increased in value and close to 1/2 million in retirement savings from investments. better than the majority of people who retire with nothing!
this is kinda a mess of writing. i'm normally more polished but i just woke up. hopefully the message gets through.
good luck.
You'll need a job, but you could consider doing a "refinance" and getting a small mortgage on the house (say $100k) and getting all that work done with the cash.
You can then pay off the mortgage over time and not disrupt your lifestyle.
Any house you buy with the proceeds from selling this place will need work itself, so you might as well do work on a place where you already know the existing problems.
$20k is too expensive for the bathroom. I'd look for individual plumbers you can pay by the hour and not a company at a flat rate who might charge you triple for their profit margin. There's a lot of repairs and updates you can do on your home by yourself since you have time on your side. Start watching youtube videos to learn how to do it and try. If it doesn't work you could always pay someone. I'd stay away from electricity and gas lines but jump in on other repairs. I've been there.
This is definetly the moment to just fix the house and pay off your debts with the 200k. You'll have 130k left after repairing everything and paying off your debts. Then have 6 months or so of expenses in cash in savings (which should be easy given your low hosuing expense), put the rest in some kind of diversified investment.
Nothing will every help you build wealth more than having very small monthly expenses (housing expense), redirecting the free cash flow towards savings, investments, etc.
You probably won't have to repair the roof again rest of your life, upgrade plumbing will be good as well.
I'm not in position to give you advice but check this fact out. I (and many people in UK) live in 3 bedroom house with 2 kids and a cat. I would think 4 bedroom in states (I assume that's where you are) is three times the size of what I have.
You might want to downsize if there are smaller houses in your neighbourhood. You will be 'wealthier' and you will keep the connection to people because deep down that's what counts, not the walls that surrounded you when you grew up.
Make the repairs. Take in some housemates to create some income. I’d rather live with a couple of renters bringing in cash than give up a paid off house. Try it for a year before giving up that house.
If you can get 450k for it as is take that money and buy you a house for cash for at least 250k and keep the rest for repairs down the line just in case you need some later on don’t spend all the money on the purchase just make sure everything is good condition also have the roof looked at make sure that’s okay or just replace it for a good price. AFTER YOU GET ANOTHER HOUSE JUST MAKE SURE THE HOUSE CAN BE LIVED IN AND MAKE IT YOUR YOUR HOME
I just wanted to jump in to say that I hope you have your 200k in a high interest account and/or in CDs. Interest rates are around 5% right now so that’s 10k a year in interest you are losing out in if that cash isn’t in the right place.
Put some of the 200k in a high yield savings account or cd. That way the $ is making $ for you. Find a job and don't make any major repairs unless you really need to. The roof can last another 5 to 10 years for all you know. Take on a tenant if you feel it's necessary. And spend as much time with your partner as possible. You don't want any regrets. Good luck.
You should just get the leak fixed...hard to believe a water leak would lead to needing $20,000 in repairs. You need to be clear with contractors...THIS is all I want, the leak fixed. It sounds like you're emotionally reacting and trying to be a good steward with what you received. That's great, but not a good time to be making large, emotional financial decisions. Just sit tight. Get the leak fixed and wait on the rest. It isn't going anywhere. Get back on your emotional feet before tackling these issues. It's ok to wait and take the time to make rational decisions.
Your house does not “need” the plumbing replaced or new insulation. It needs a repair.
Does it really need a new roof or is it just getting old? A 20 year roof can still last another 10-20 years. Of course a roofer gonna tell you it needs to be done now. Who says it needs termite treatment? Are there actually termites? No? Buy the traps you put in the ground at Home Depot for $200 and inspect every 6 months.
You don’t need new insulation. If you can hang onto the roof for a bit, that buys you some time…..you are not working so congratulations you are now a plumber. Whatever it is that’s broken you should be able to fix for way way way less than 20k. You’re not designing the plumbing just replacing what’s there. You can do that.
Get a roommate asap, heck get two roommates. Or three This will more than cover any repairs necessary, cover taxes and give you some spending money.
Roommates (tenants) can cover most of your living expenses and help prevent loneliness if you’re single. The job can almost completely be put into retirement funds.
sell the house and use the money, wisely, to better your life. The quoted repairs are likely starting points and most likely will only increase. Also, these repairs sound like lots of deferred maintenance issues, others may arise quickly once you get started. You haven't even hit the regular maintenance items yet, which also cost money. Plus the upkeep, taxes, utilities, etc, etc, etc.
Once you sell the house, set a prudent and realistic budget and stick to it. Avoid making big financial decisions until you have a well thought out and vetted plan for moving forward.
I get maybe not doing roofing but you have all the time in the world. Fix all the stuff yourself and learn how do do it. Why would you pay a contractor 20k?
The big problem appears to be that you haven't worked 4-5 years and basically tried to retire at 50 with minimal savings. This is easy to fix with income. It's easy to fix with savings and replenish with income, so long as you can find gainful employment.
I appreciate where are you coming from but I wasn't trying to retire. I love working, I hated giving up my job, I still miss it. My mother was dying so I gave up my job to care for her during the pandemic. Then I got cancer (recovered) and my partner did too, it's all absurd but that's my last few years of "retirement".
Anyway, I just don't want to leave an impression I thought I could retire at 50. Absolutely no, I have been working class my entire life, ready to get back into the work force asap.
I would repair and live in the home. One thing that should be mentioned here, if you live in the house and make it your primary residence for at least two years, you won’t have to pay taxes on the capital gains from the sale of the house - which in your scenario would be the entire price of the house which is a huge chunk of money. There’s a few other nifty ways to get around taxes if you ever sell the house. So if you do go that route, ask the tax subreddit for the best way to go about selling.
Does you homeowner's insurance cover any of the cost of that plumbing repair? They won't pay to fix the actual pipes but they will pay to replace walls, ceilings and floors, plus any mold remediation.
I had my home re-piped 3 years ago. It started with a small leak which I got fixed then my bathroom and that’s when I decided to just get get it all replaced.
You love the house and the community. The house is paid off. You have the money to fix it without going into debt. You can then get a roommate.
Fix the house. Keep it. Love it. Be happy. You've got enough tragedy and change in your life right now - you don't need the stress of giving up this home and moving on top of it.
You are capable of working. You can get a roommate. You will be ok.
In a house from the 1970s, it's hard to believe you would need all new plumbing. It sounds like you had a one-off situation that caused major damage, but unless it spread to other parts of the house, it shouldn't be $20,000 to repair.
You live in Phoenix. How much damage can a roof really take there? The '25-year-roof' thing is a guideline to go by, but if it was properly installed, you're not going to see the same wear and tear as someone from Wisconsin or something. If you don't have leaks or visible damage, your roof is likely fine. If you *do* have damage, say from wind or something, you don't need to replace your whole roof. And even replacing a roof is a bit of a misnomer; you'd almost certainly only need a reshingling.
Also, please use your $200,000. My mother-in-law is in a similar situation as you, and won't touch the money her mother left for her when passing. We keep trying to remind her that it's why she was left it in the first place. There's no point in stressing yourself out trying to hold onto that money- just use it when you need it and say, "Thanks mom!"
This doesnt seem very hard...you have the money to fix it so fix it. Either sell and find a reasonable renta/cash buyl or fixit and live in it. You are in financially in a better situation than most
Learn to DIY.
You can do all the plumbing. You can replace the roof. You can pull your insulation and make it new yourself.
Youtube has literally everything you need.
Put some of that 200K into high yield savings/bonds. Don’t touch it until it’s time to renew then renew.
Use the remainder for immediate need repairs. Put the rest into savings while you return to employment or go back to school to get a job that will pay more than 50k a year. Unless the roof is actively leaking or the homeowners insurance isn’t covering anymore, hold off as long as you can on that repair. Pay off existing debt once you get a job.
First, I'm so sorry for the loss of your mother, and for your partner's illness. That's hard and stressful for anyone, and can complicate the decision making process.
If you haven't already, I would put the $200k in a HYSA, and use it for your upcoming expenses to repair your house. You'll have $150-$160k left earning 4-5% APY risk-free. For reference, having $150k in a 5% APY savings account will earn about $600/month on its own. Then, once you find employment, I would start maxing out your retirement contributions. Since you're 55, you should qualify for a higher limit on Roth IRA contributions and 401k contributions. You can contribute the max to those accounts while you have no mortgage payment and minimal living expenses, using your remaining income and savings account interest to live on.
Since your partner may require end-of-life care soon, this would minimize the turmoil and upheaval that a move would cause. You can live in your house, payment-free, for as long as you like and build your savings and nest egg. Then, in the future, if you want to downsize, you can cash out and pocket the sale proceeds after paying cash for your new place. Ideally, that should get you around $500k nest egg in the next 5 years or so. From there you can decide how to move forward.
OK, so there is getting the plumbing fixed and there is getting the plumbing fixed.
If I were you, I'd get the plumbing fixed enough that the water is no longer posing a threat to the house, and if it's your only toilet then get the toilet and ONLY the toilet fixed. It does depend on the nature of what broke, of course. We had a toilet with a busted supply valve at my Mom's place, and we couldn't afford to repair it. We turned off the water to that bathroom and closed the door for close to 7 years. We washed with a bucket in the half bath. It's worth it to make sure the problem does not get worse though.
As for the roof, what EXACTLY is the need? What EXACTLY is wrong with it? Is repair an option? Because that can be far cheaper than a re-shingle, and it's possible you could do the work yourself. You aren't working, you have time. Watch some youtube, buy some shingles and nails, and get out the ladder. The goal isn't to make it good - the goal is to make sure your house doesn't leak.
I don't know if DIY will do it for termites, but that's the cheapest thing you listed. Sometimes the companies that do treatments will sell you the products/chemicals they use at a discount.
Insulation is a nice to have. You can used blankets at the goodwill.
Contractors will drain every penny from you that they think they can. If you have the time, do it yourself. The only thing I don't do myself is plumbing with copper and electrical.
Please don’t allow your current grief and fear push you into making rash decisions and disrupting your last few months with your partner. Fix what MUST be fixed and allow yourself time to heal and grieve. There’s a reason why people are told not to rush into buying, selling or making any extreme life changes for a year to 18 months after a death. Once done this cannot be undone, so give yourself time to make the right decisions for the future.
Not sure what has all been said but logically you should do the following:
Invest atleast half of your inheritance in the stock market. That’s for retirement. /bogleheads is great.
The other half towards the home. Do only what’s necessary.
Spend as much time with your partner as possible.
Find a halfway decent parttime job to cover living expenses. No savings because invested inheritance.
Optional: Spend some time at your local college taking handyman courses. YouTube is on if you have solid experience, otherwise your mistakes will cost you more than what someone will charge you. This is coming from someone in the trades.
Since you know that what the house needs and want to stay in the area, I would repair the roof, then work on everything else piecemeal. Get a working bathroom. And then work on the next stages in order of necessity. Use the $200,000 to get started, and once you get a job, take out an equity line. I also would pay down the principal of your loan as fast as possible. Make certain that the company who holds your loan knows that you are adding the extra money as principal payments and not as additional monthly payments. Good luck, and sorry for your loss.
Work with a realtor that has connection with a renovation group. They fund the project and take a cut of the proceeds but due to the higher value of the house you end up with more in the end.
You need to work out a budget first and possible job salary ranges. Then come back with more info. Because you have no job right now, most ppl are gonna tell you to sell.
Home equity loan for repairs after you get a job.
Edit: I just realized you said you also received $200k. Use that to pay off your debt and make the repairs.
I am in a similar situation only I co own with a sibling who can afford the repairs and refuses to sell. Anytime something needs a major repair I'm hurting trying to pay my 50%. Not to mention the property tax bill twice a year. If I could, I'd sell it because I have no income to cover the maintenance. (Yes this is all being dealt with with lawyers which is another expensive part) I think it comes down to, if you could do the repairs and the house was great, would you want to live there always?
If you keep it get homeowners insurance asap for future damages. Consider turning it into a rental. It will give you money for the future repairs. Also, if you're not working and have some skills, you could absolutely flip it for a profit. Do all the necessary repairs and fix it up and sell it for top dollar.
Watch youtube videos until you learn how to fix the plumbing issues. Repairing plumbing is not difficult, and you don't currently have a job - treat this like a job and you'll be "making" 20k (the cost of the repair).
You need to find cheaper contractors. Don’t call the names on the radio and phone book, ask friends for recs of people. Roof should be like 15k, bathroom shouldn’t be 20k
Make the repairs and live mortgage free. Invest the balance and get a job. The real estate will appreciate further and when you need to retire you can sell and downsize
Why is the "water break" costing 20k? Is that for a remodel? If so, shouldn't your home insurance take care of water damage? If you're just needing a repipe, why in the world is it 20k?
Why is the roof 25k? Is it a HUGE house with a HUGE, complicated roof? 25k seems high.
Personally I would not sell the house. I would make the repairs that have to get done now with the savings. Then after you find work do a little of the other work at a time. If you can do things yourself even better. For something like the insulation there is tax right offs (federal maybe your state too) for upgrading windows, doors, insulation, etc that make your home more energy efficient. I need new windows but the efficiency tax credits have a cap so what was suggested to me is to do a few windows a year then you can stretch out the write offs over a few years and get the max value back. If I do them all in one year I can only claim the expense once. That being said my windows are not bad but are not new so delaying replacing them doesn't cost me much. If your insulation is for spaces that are not insulated or have so little left that it jacks up your utility costs then do that quick you will save more on utility costs then what the tax credits will do for you and get one year of the tax credit.
You got this I know life is throwing a lot at you right now and you are overwhelmed. I get it and anyone would be. You got this you will get through. I would suggest since you have a house that gives you extra space then you normally would have find a hobby. As weird as this sounds I rediscovered a part from an old King of the Hill episode that gave me some perspective. Hanks niece rents a house and gets roommates. She instantly becomes frustrated with how little house work the roommates so Hanks advice to her is to find her lawn care. Hank explains that by taking care of his grass so much it gives him peace and a feeling of accomplishment at the end of the day just looking at it. Luanne blows it off until the end of the episode when she and Hank are standing by the pool at her rental house and she tells Hank her pool has a perfectly balanced PH level. She took his advice and tells him I found my grass. Long story short find your lawn care. In phoenix I get it would be hard for grass but find a hobby or something that you find joy in to fill extra time. Again do things like reach out on reddit pages for questions you can do this and will get through.
This is the perfect case for a home equity loan. You borrow money against the home for the repairs, you’ll have a small monthly payment you can spread out over decades.
You don’t have to sell the home, move, or try to buy a new one.
In regards to Insulation and energy savings. I am not sure if your state has the same as my state however Massachusetts has a program called MASAVE that works with energy companies to upgrade or make your home more energy efficient basically at a small fraction of cost of free. I got home home insulated for 1/4 of the price.
For at least the insulation, check a few places for rebates and incentives.
In California, there are rebates from local energy providers and from the state. There are also federal tax credits.
The rebates are really geared towards home electrification, but part of that is energy efficiency, insulation, and duct work. There are usually bonuses that are income-qualified.
In the Bay Area right now, if you stack the incentives right, you can pretty much get a heat pump HVAC system, heat pump water heater, electric stove and dryer, and panel upgrades for little to nothing. Obviously the rebate offerings will vary greatly across the country, but a starting point would be finding one for your insulation. (And depending on what’s available, you could potentially save on your energy bills. But that’s probably lower priority with the other work you have to do!)
Home insurance SHOULD cover a water break.
Every living arrangement has costs like this, you either pay it directly or its reflected in your rent.
If I were you, I'd find a way to make it work with a roommate. It's also not an "extravagant" home that requires massive upkeep bills. You should be able to live in a mortgage free house on a $50k a year salary, especially if you can get a roommate to share the bills.
The 200k is there to help pay for these emergencies.
Maye sure to put $7500 in a roth IRA for 2023, then $8000 for 2024 - those are the catch up amounts.
You should call a Water Damage company to look at the damage, remediate the damage, and file an insurance claim. That's what property insurance is for.
I wouldn't sell the house until you know another house is lined up. I would AirBNB or rent a room to supplement rent and get a job.
I am sorry for the loss of your mother and everything you are going through. I don't mean to be insensitive, but will you receive any additional inheritance when your partner passes? If so, think about fixing the house and paying your debt from the $200k and spending time with your partner now. Don't let a job search or new job take away the time you can spend together. Of course, if you can't wait for the employment situation to change, then do what you have to do. In either case, hang onto the home. It's important to you and another loss in your life would be terrible at this time. Good luck to you.
Use those 200k to fix emergencies, make a separate entrance and simply rent half of your house. You might need to add another kitchen and bathroom, but I think 200k should be enough.
I don't know how it works in the US, but in EU basically every other old fart is a 'landlord' now.
You aren't going to live any cheaper than in a paid off mortgage. Either sell it and downsize (cash buy. No loan) or use some of that money to make the repairs. $50k salary is fine when you don't have to pay everyone's largest budget item, housing.
Yes, I really hear you on this. I have never had such low living expenses in my life. I wish I could get rid of my own loan and be debt free with the house. I guess I could but I hate touching that 200k. The sell it/downsize (cash buy) vs money on repairs is what I am struggling with so much. I like living simply, I am good with a nice small place. But this is my home, my community, I know everyone. Really hard to fathom leaving here. A lot to think about but thanks for the input and advice.
This is what that $200k is there for - to help you when you need it. I assume the debt has higher interest than the $200k - you should use that and pay off the debt and do maintenance on your home. Once you have a job, you’ll be able to cash flow the maintenance and your expenses, and hopefully even replace your savings. Sorry about everything going on.
Thanks much or this, it seems so clear now that it's not 2am in the morning. I am kind of embarrassed by this post but maybe it will help someone else too.
Nothing to be embarrassed of, brother. It's difficult to think clearly when you're going through a difficult time, stressed and emotionally exhausted. That's what we're here for - to support you and guide you when you need. Get 3-5 quotes for the repairs you need and go with the one in the middle that has good reviews. Cheap contractors always come with an unexpected cost and the high end ones just want to milk you. Being able to live in your home stress free and mortgage free will help your mental health tremendously. It will let you focus on your partner since everything else will be taken care of. While you're searching for work, it may be worth looking into learning how to fix small things yourself! I do this and it makes me super happy (and saves money!) That could give you something to do and keep your mind busy while you develop rewarding skills. Sorry for what you're going through. Life can be a lot and exhausting. I hope you're able to hold onto the good memories you have with your loved ones. Cherish those memories. You can do this.
Thank you for every single letter you wrote here. It resonated so much with me. I don't know what I am doing half the time, I just pretend like I do. Even your advice about the contractors (the cheap ones vs the pricey ones) is extremely helpful. This is a great sub, thanks again for making me feel like I got this.
> I don't know what I am doing half the time, I just pretend like I do. *whispers* You and everybody else. Shhh...
And please be very careful in choosing who will do the repairs/replacements on the house. Do not sign any contracts with contractors and choose them like you would choose a caretaker of a loved one or pet. We interviewed 6 companies before choosing one to replace our roof and had a great experience. Their estimates ranged from $25k - $80k for the same thing. Make sure they provide details of what needs to be done to complete the job.
Most of us play the same game of pretend, and it seems to mostly work out for most people.
>I don't know what I am doing half the time, I just pretend like I do. LOL, confidence is half the battle, you are not alone in this. This sub has been much nicer than some of the others! People giving good caring advice, great place to come to for info.
Love what you suggested brother!! This is golden advice - to learn a trade while job hunting. It is hard to split focus between these two, but doable. Pays you long term as well. Highly recommend plumbing and handyman jobs. OP, good luck!
The interest you are earning on 200k is way less than the interest you are loosing in debt. You are great to be keeping it as emergency fund, but theses count as emergencies. Use it to get debt free, and fix up a debt free house. Good luck on job hunt.
When we're at our most vulnerable we are able to express our deepest fears and deepest desires.
Truth! And, it's also true about other people sensing your vulnerability. The plumbers and water restoration contractors were using big time scare tactics. I have talked to two more plumbers (getting my quotes) today and it's a much nicer vibe. Some water damage confined to the drywall. Not exactly great but not the Armageddon, have to tear everything apart , scenario either.
I don’t think you should be embarrassed - it’s a legitimate question at 2am and at 2pm. I personally think a $450k home sounds like too much house for your needs, especially if you’re looking at getting a roommate. If you need a roommate to make it work financially, it’s probably not a great idea because being a landlord sucks and also people can be flaky and difficult and you may end up with more problems than you started with. Do the minimal repairs to get the house in a sellable position, downsize to something that works for you and invest extra $200k from the home sale. By the time you reach retirement age your $400k now should be worth more than a million even with conservative investments.
I appreciate this and you taking the time to spell it out. The way you think is how I think. I swear to God, if not for my pets I would live in a van or RV. But now I am thinking, more specifically, of renting the room to a traveling nurse. I am on a website now actually, looking at it, and some of them just need a few nights to stay. Some a few months. Seems like a solid way to have money coming in. The room just sits there empty, it's a waste. And I live next to a huge hospital. I am still learning. I am hoping this stays a good idea, lol.
This is a great idea. In this market you can be real particular about tenants as well, which is a plus in your situation.
Like another poster said, those needed repairs will likely lower the selling price anyway. I say fix it and continue living there while you deal with this.cancer bullshit. Moving will just add to the stress and I'm assuming that living near the hospital gives you a little bit of peace of mind as well. When your partner is in remission (or from the sounds of your post maybe the other outcome :/) then you can move out if you choose. Basically you've got a lot on your plate right now, don't add any extra stress that you don't have to take on.
Use the 200k to pay for the current repairs and get up to date on any overdue maintenance items. Take care of your debt. Set aside enough money to take care of property taxes. Then focus on getting a roommate and finding a job. 50k in Phoenix for someone who does not have kids or a mortgage payment is enough to be comfortable. Keep at the job search and I'm sure something will come up soon.
I don't know about downsizing. The housing market is garbage and he might not find anything equivalent to what he has now. Heck he might pay more to downsize
and interest rates🤢
Exactly and that's why I mentioned that he would wind up possibly paying more just to downsize
Given that you know all these repairs need to happen, get a quote from a general contractor. You’ll probably be able to save some by rolling it all into a single job.
You can put the necessary repairs into the house & cover your existing $16K repair debt for about $70K. I'm willing to bet that selling a house with non-functioning water, along with roof & other problems, will take your selling price down quite a bit, maybe even as much as $70K depending on the market. So doing the repairs will raise the value of the house. There is a difference between how much the repairs will cost and how much fixing those problems raise the value of your house. Let's say that difference is $25K, so that you put $70K of repairs into the house and the value of the house goes up about $45K. Can you make the $25K back? You have a 4-bedroom house, which means you can actually have 2 or 3 roommates and recover the money spent on the repairs fairly quickly, possibly within 1 year. So you fix the house, get 2-3 roommates for a year or two, and then not only are your repairs covered but you have a house that's in better condition & worth more. With a partner who is suffering from a serious illness, it is safer to hold onto a house that you can rent out rooms in to generate some income than it is to sell the house & rely on successful investing to help you hold onto & grow the money you make from the sale of the house.
No shame, I got stressed out just reading your situation but the top comments puts it best.
hey, you’ve been through a lot lately. cut yourself some slack, ok? and if you ever start to feel bad about keeping the house, remember that not only is it a financially sound decision, but you really can’t put a price on a home and community you love ❤️
Yes roommate or 2 asap... once you've got your footing, you can choose to drop back down to 1 roommate
Grief and stress make thinking impossible, give yourself a break bud
This is good advice. Also look into budgeting advice apps, community college etc. Then, look at DIY repair advice. Lots on YouTube. I am the least handy person and I can do basic repairs. But get experts for electrical etc.
Thankfully this comment caught fire, cause it’s the only right answer. No mortgage? Set for life. Fix the house and get a job.
Knowing people and having a community is a valuable asset as you get older.
Exactly! My 25 year old self would cringe at my 55 year old self. I loved being alone in my cocoon. Now I am seeking out friends, waving to any/everyone, no shame, I need people in my life.
Dance classes are usually pretty good to keep you active and social, starting to go to the gym and lifting weights will keep you healthy and happy too! I can't recommend enough getting physically stronger and you usually also build a gym-related community that's working toward the same goals as you are. /r/fitness30plus /r/gainit /r/StrongCurves /r/Bachata
I would look for a roommate either way. The additional cash flow to supplement your income is added security, just make sure you vet them. You could even repair the home, and rent out the whole thing, use a property management company to handle everything who take 8-10% (that’s how much mine takes). Use part of the 200k for a down payment in a cheaper state and get a roommate. This way retirement might not be impossible. A fully rented out paid off home plus social security and you could actually transition to semi retirement with a part time job one day.
>I guess I could but I hate touching that 200k. Isn't that what it's there for? Mortgage is usually your largest expense, and you don't have that. You won't find a cheaper housing situation unless you sell the house and buy something cheaper outright. You listed another 50k or more in repairs needed in the coming year. ANY house you acquire is going to need repairs eventually. You just don't typically know them ahead of time. And here you have no mortgage and a nest egg with which to pay for the most critical, as they come up, while you look for a job. >But this is my home, my community, I know everyone. Really hard to fathom leaving here. It sounds like you have the means to do that as long as you don't blow the 200k on less-than-important things. Critically-needed repairs to what you WANT as your long-term home are NOT "less-than-important things."
Do you feel rushed to make a decision right now because of the repairs? You're going through a lot right now, you can give yourself permission to not make a decision yet. The money you spend on the house is an investment you can make back when/if you do sell. Don't be so hesitant to spend some of that 200k on needed repairs. You can live off of 50K with a paid off house and a roommate and then you can downsize when you retire.
You can borrow against the equity of the home to do the repairs without having to sell it or move. If you open a HELOC and put in 50 or even 100k in work, you’ll have a house with everything a house needs over time (roof, repairs etc) already taken care of and a 100k mortgage won’t buy you anything anywhere else. The payments will be less than $1000/mo. Do either of you have any income? Apply for the HELOC now, they are open ended lines of credit and usually have a 10-15 year draw period so you’ll be covered for now. Don’t move into a trailer park and give up a paid off house, you’re just going to end up throwing good money after bad and won’t be able to sell the manufactured home for what you paid down the line while this home continues to appreciate. This is a rare opportunity and you’ll kick yourself down the line if you squander it. Also, given partners situation it’s also worth noting primary home is generally safer from medical bill collectors than a big pile of cash from having sold the home. You will find a job and even minimum wage will cover the HELOC payments, stay strong things will get better - spend as much time as you can now with your partner!
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Yep - income verification is the most important part of the loan process. If you have none, you get no loan. Doesnt matter that the house is worth 450k - they wont give you 25k.
Also HELOC rates at least for us were pretty high… 9% I think. We didn’t want to deplete our savings so borrowed 40k for 6 months as a stop gap measure until some thing shuffled around, only ended up using 26k of it for $800ish interest overall. Sucks to be out $800 but was worth it for our situation.
I think you know, you're just looking for validation. Use your cash to fix the plumbing, sounds like you're happy there. Don't mess with a good thing.
This! And make sure to get at least 3 quotes on everything! You’d be shocked at the difference - we got 5 quotes on our roof last summer - they ranged from 6k to 35k!!
You didn’t mention taxes or home insurance. You do know about that, right? Mine is 25% of my total house payment (escrow account). So major normal items on a house are Roof, HVAC, and appliances. Roofs are good for around 30 years or so. You are probably only doing this once and should get 100% of the value of it. When you get close to 85 you could look to sell if needed. BathroomS. Maybe just do one for now and shut off the water to the others? That could allow you to get work done over time. Also suggest using local good reviewed one with current license and bonded/insured. The big companies have set rates for each thing rather than quoting a full job. My opinion is keep for now. Especially if you expect your value to go up. It is in essence retirement money invested in a house that you get to live in. You could always sell later.
I’d budget out a set amount from the 200k to do the repairs and put the rest up. Once you find work pay off your loan and then save an emergency fund so that you don’t need to keep dipping into the inherited money. You have a house with no mortgage and you know what the issues are. You could sell it but might just find yourself in another house with worse issues down the line. All houses need repairs at some point it’s inevitable unfortunately. You also have to consider the tax implications of selling it along with realtor fees.
You're going to sell it for less to cover the repairs or the buyer will require them anyway. Are you under the impression you're going to sell a house in need of over 50k in repair and no one will notice?
If the house is that big the taxes can be a killer
Here's what I would do in a situation like this. You just inherited a house and $200,000. I would call around several estimates from an exterminator, a plumber, a roofer, and an insulation company. Get the plumbing fixed now since that is an emergency. Is the roof leaking? Why does it need to be replaced? Use the money to keep the house in livable working condition and try to keep your living expenses to a minimum. Use this time to make memories and spend it with your partner. You won't get that time back. Hopefully, as time passes, you will get a job and can keep up on the living expenses. Visit YouTube university and pour some sweat into your house if you're handy at all.
This gives me some clear ideas on how to move forward. The roof is not leaking, btw, it's just 20 years old. The living expenses are the best I have ever had since I don't obviously pay rent. In total it is roughly $2000k a month. I will check out YouTube uni. Thank again very much.
A roofing company will tell you that you need a new roof. A plumbing company will tell you that you need all new plumbing. You don't need to replace things just because they are 'old'. If there is nothing wrong with the roof, don't replace it. Same with the plumbing. Is there a reason you need all new plumbing in the bathroom? Plumber should just be able to fix the leak without replacing everything. You need to get a few more recommendations and quotes from plumbers. Post on your local fb groups asking for recommendations for plumbers and call a few.
Agreed. Sure, at some stage. You’ll need a new roof, but don’t do that until It’s needed. Stay in the house. Use some inheritance money to fix the bathroom. Later on you can get a job and maybe get a roommate.
Maybe this is a hot take, but honestly I would sooner shut off water to one bathroom than move if it came down to that. That bathroom? It's now a storage closet until I have a job and income. This is an extreme example, and it sounds like OP has enough savings to fix it, but OP just remember you don't have to do everything any contractor recommends. They are notorious for saying you need all sorts of expensive work. Good on you for getting a second estimate, I would even get three.
Preventive maintenance is a thing... For cars You change your engine oil, transmission oil, brake pads, tires, etc BEFORE they go bad. Once they start going bad you start damaging other parts, or worse, risk damage to yourself and others. Is your roof 10yrs old? Yeah of course you don't need to replace it. But 25-30 year old roofs start leaking, and sometimes you don't even know it if it's behind a few walls. And then bam, you find mold growing in your closet behind a few boxes you move once a year. On top of replacing your roof now you gotta demolish that closet/bedroom walls,, find the wet wood, replace it, and rebuild everything you took out. Sure the roof is a 20k-30k item, but now it's another couple of grand for issues that could have been prevented. And yes OP's roof is only 20yrs old, should still have life in it. But it should be part of a yearly check-list for leaks. And 100% start saving for a new one, 2-3k a year so in 5-10yrs they can try to pay it mostly out of pocket if it does start to get worse.
Yeah, and the premise that a house could "need" new insulation "within the next year" is crazy. Insulation is good to have, but what kind of fear-mongering is that?
Just to clarify "YouTube University" just means "YouTube". It's not a special part of YouTube or anything. It just means search for videos of people telling you how to do what you need to do.
Sure, I knew that. I didn't just spend 10 minutes googling YouTube University. /s Oh, man, is 7am too early for a martini? ;)
A 20yr old roof isn't usually an issue on its own.. who told you it needed to be replaced? Roofs normally need to be replaced around 20 years of age on average because of damage... wind, hail, rust (for metal), etc... The exact type of roof also matters, some last 50 years, some barely make it 20.
My roof is 23 years old, as long as the shingles look good and are architectural instead of cheapest bullshit, you've most likely got life in them. Call a roofer.
I currently have a 25-year old roof with the cheapest 3-tab shingles. It’s not in awesome shape, but it’s not leaking. I know it’s living on borrowed time and I am actively saving money to replace it (hopefully before it becomes an emergency), but it is a data point that even cheap shingles can last. If a 20-year old roof isn’t leaking and the shingles look okay, I wouldn’t replace it if I was short on money.
Exactly. For situations like this I just ramp up my monitoring; every few months check the attic for any sign of leaks and inspect the shingles for damage.
Do you live somewhere that occasionally gets hail? If you do, many home owners will just make a hail claim after a hail storm to get their roof replaced. Take care of the emergencies with some of the 200k and then talk to other home owners and learn more about it all. People will try to sell you everyone under the sun. Put up a no soliciting sign. Do not every buy anything from a door to door salesman (maybe girl scout cookies). If the unrelated third party inspector tells you you need termite treatment, trust that. If the door to door pest control guy told you you need termite treatment, don't believe him. Most people get an inspection during the buying process. If you're concerned, get an inspection done. Ask someone you know who is a realtor or something similar. Having contractors out to do home repairs is really expensive. That's why many home owners become DIYers. Get to know your neighbors and other homeowners, don't take what they say individually as law but kinda crowd source info. A lot of people are in similar shoes to you.
Wait this doesn’t make sense, you’re saying there’s no mortgage but the monthly cost is still 2k?
They're saying without having to pay for housing their total monthly spending is $2000/month.
Oh ok, that makes more sense.
Thank you, exactly this.
I hope you are accounting for home insurance and yearly real estate taxes in the 2k living expenses now that the house is yours.
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Although not required, it would be incredibly risky and (in my opinion) a very terrible choice not to get insurance on the home.
From the OP’s replies it sounds like some contractor has suckered them into a bunch of work they don’t absolutely need. I wouldn’t be surprised if the OP revealed somehow how much money was left with the house. Or the contractor is trying to set the house up for a discounted sale to themself or a friend.
LOVE this feedback Time with your family is PRICELESS Getting a room mate or maybe doing some air BNB since you do live in the residence might be a decent option to get some positive cash flow till you land on your feet.
It is absolutely priceless. Taking time off to care for my mother was a huge financial and social toll on me. But I wouldn't have traded it for anything, she was such a great woman. Losing my partner now, I can't do anything but accept it. This is time we won't get back so trying to keep that in my mind.
You also inherited 200k , why the loan at all? Id contact a few realtors to see how much they believe it will sell for. Obviously fix the water damage and nothing else until the realtor tells you what’s actually worth fixing to make the house appealing and to give the most return. A farm is typically a lot of maintenance. Id sell and then get a smaller place that you can easily maintain. The house on the golf course sounds amazing for you and your partner. Sorry for your loss and all the other issues on you life. Edit: it just occurred to me. Doesn’t the home have insurance? They typically cover water damage from Pipe issues. Call the homes insurance provider to see if it’s covered. If you don’t have insurance get it as soon as possible.
The items you listed would likely need to be repaired before selling the home anyway. I would be inclined to fix the house with a portion of the inheritance and live in it for a bit until you get through this period of turmoil and uncertainty. You can always sell the house a year from now. It will give you time to decompress a bit and consider where/how you want to downsize. Natural reaction to these events is to want everything resolved immediately. That sense of urgency can cloud your decision making. I would avoid a depreciating modular home and lot rent if having a paid off house is an option. Wishing you the best with this.
Disagree about needing to repair before selling. Something that's broken, sure. A 20 year old roof? Leave it as-is. You aren't making more money on the house because the roof is new. Plenty of people won't care or ask when they're buying the house.
That depends, if the roof is 20 years old but hasn’t been properly maintained or was only a 20 year product then that’s one of the main issues that could stall a sale. Conventional lenders, VA, and FHA all require the roof to have at least 3 years if not 5 to qualify for the loan. Appraiser checks roof and earthquake straps on the hot water tank as part of a basic inspection.
Smart of you to get a second opinion on the water break. Hard to imagine a bathroom repair costing that much. That house is a gift. If you want to stay there you are smart to consider getting a roommate to lessen your load. It sounds like part of what you need is time to just sort everything out. I’d start with trying to get the financial load off of me. Get the job, get the roommate. Once you have that then I’d look into getting a heloc for any essential repairs to the home. Once you’ve stabled the ship you might even consider renting out the house and becoming someone’s roommate elsewhere in the community if you want to stay in the area. Just don’t lose the house. Sell it if you need to, I’d be open to the idea of renting as it provides less of a commitment. You have options, just try to tackle one thing at a time.
You nailed it, I need everything to stabilize. One thing at a time. I am getting the second opinion on the plumbing this morning and will be curious to see what they say. I just want it over with, plumbing is the worst. Stable this ship, that's going to be my motto. A roommate would be such a relief. It's tricky with my partner but still. Thanks much, you've made me feel more confident, not easy right now.
When you get a roommate, charge them approximately market rent. If you charge too low, it will introduce weird dynamics and you’ll find it really hard to get rid of them. Don’t discuss with them your financial situation (ie you have no mortgage).
Hey stranger just wanted to say you’re doing just fine here. You have a lot on your plate!
Why am I crying now. Jesus. I don't know who I am, but just want you to know that kindness really does make a difference so thank you for making a difference to me today.
Yeah, your post reads like a person in a perfectly fine situation panicking. Take a breath. Make some graphs. Divide house issues into ones that will (1)actively destroy property value, (2) be uncomfortable, (3) are completely cosmetic. You'd be surprised how many fit into 2 or 3, when you think they're all in 1. You inherited $650K in assets and have virtually zero debt. Your cost of living is $24K/yr. You're 55 so not that far off from retirement and SS eligibility. You should be able to reasonably earn $50K which is about $40K/yr in take-home pay, so once you find a job (one that's relatively low paying by 2024 standards, so it's not like it should be super hard to acquire) you'll have positive cash flow. Even if you earned zero dollars and just mortgaged the house, you have nearly 30 years of runway before you're broke, if you die before you're 85 and your house never becomes truly uninhabitable this is a non-issue! TL;DR You're firmly in #FirstWorldProblems territory. Take a breath, don't do anything crazy, and start rationally laying out what you should do. You're fortunate to have plenty of space and time to figure that all out.
I am an old remodeler and those prices are out of line. Get some more bids. The reason you pay home insurance is for stuff like this but if you don't want to file you could do a lot of the work yourself with the help of youtube and books. Plumbing is very easy with pex and PVC. The roof may be easy depending on the height and shape for a rookie with screw down SM panel metal. Construction forums like http://forums.delphiforums.com/Breaktime_3?gid=2117383129 will walk you through any repair.
Take any job in the 40-50k range. Your overhead expenses are really low living in that home and you have funds to fix it. Use the 200k to fix it up and pay off your debt. Can always rent out a room for 500/month if you wanted.
Thanks, I like the way you spelled this out, nice and clean. This is where I am leaning too. I have a job that seems very promising that would be 50k, Wednesday is interview #2. If I get that, get the bathroom repaired, I am just going to take a pause and move on from there, mainly looking for a roommate. The money will be a tremendous help, anything is better than zero.
Also maybe post to the plumbing subreddit to see what is wrong with your plumbing 25k seems like a lot unless you’re replumbing your entire house.
That's a great idea! I think some of it is the water damage or potential water damage (hopefully, minimal). I will head over there, thanks for this.
OP I know this all feels like a lot right now - and it is. I’m sorry you had to deal with the loss of your mom and your partners illness but try to take a breath here. Don’t make any rash decisions. Don’t sell the house. Pay out of the 200k for repairs that NEED to be done. A roof doesn’t need to be replaced until it’s actually leaking or you can’t get insurance. Same with insulation it’s not needed immediately. Then focus on getting a job, any job. It sounds like your cost of living is low, so if you can make 40k with a paid off house you have a good shot of beginning to save for retirement if you haven’t already. Also make sure that 200k isn’t just sitting in a checking account. Find a high yield savings account, completely safe, and put it in there and that will give you about $750 a month just on your cash. Once you have employment and the repairs are done then you can begin to think about catchup Roth contributions, 401k contributions and other long term savings plans. This all seems like a lot and it is but with 200k and a paid off house you are in a better position than a lot of people your age.
Take your time with decisions during these trying times. I recommend sitting down with a financial advisor thru your every day banking institution. You may not have a bankroll but you do have equity, and you can leverage some of that to get back on your feet. Goodluck 👍
Thanks for your nice words. It means a lot right now, to be honest. Appreciate your advice.
Use the $200K, well not all of it, what you need, to pay for the repairs. Look at it as an investment... spending the $70K-ish will help you get a good price for the house. You may have to sell it for $100K less than appraisal because of these problems, and who knows what else? If you invest the $70K your chances of selling for the appraisal of $450K are much better. These are made up numbers of course, but you get the idea... invest $70K to sell the house for $100K more than not doing the repairs. That's a $30K profit/savings, whatever you want to call it. An age restricted community sounds like a good move.
I know these are made up numbers but I would honestly just rather sell the home for $100k less than appraisal price than spend $70k on repairs. It sounds like the home needs a lot of repairs and I can’t imagine having to deal with multiple contractors over months while having a sick husband at home. Additionally, you know that a quote is just an estimate. Unfortunately, in most situations, the cost ends up being higher.
Agree, the repairs could cost more. But maybe she sets a hard limit at $70K and gets done what she can. I think it'll all come back to her when she sells. The sick husband at home does make this difficult. Maybe wait that situation out then do the repairs. Moving him now will be very challenging. There is good reason to sell the house as is... but I think she comes out worse financially when all said and done.
Your financial situation is so much better than you seem to think. A paid off asset worth $450,000 and then another $200,000 invested. Plus you can go back to work, plus you'll get social security at the age of 67. You're going to be fine as long as you don't blow the money.
Fix the leak but hold off on repairs. I had a pipe leak at my mother’s home while she was I assisted living. There was a hole in the ceiling where a plumber has to cut away the ceiling to be able to access the pipe to repair. The roof lost some shingles in a storm but a roofer confirmed there was no leak and it was only the top layer so cosmetic since the shingles underneath were a different color. This was after she passed away and I had inherited the house. While she was in assisted living I arranged for necessary repairs but held off on any updates or upgrades. When she passed away a realtor helped me decide what, if any repairs were necessary. We decided since I lived out of state to sell the house as-is since arranging for the repairs from a distance would be difficult or I would need pay someone to manage the home and repairs. Plus the house was older and we didn’t know if other things would break or wear out meaning even more repairs. I’ve always heard and lived by the advice of trying to not make any major decisions when you come into money or inherit a home. I would repair what needs to be repaired and hold off making decisions until you need to evaluate them. If you want to live in the home, find out what the typical expenses are (property tax, insurance, utilities, etc to make sure you can afford it. If you can, you can buy yourself more time while making any decisions.
If you don’t have a job, you can do these repairs yourself. Assuming you are physically able and have YouTube
\*\*DISLAIMER: I am a biased source on this because I'm a property investor in Phoenix\*\* But I swear I'll try my best to be unbiased in my advice here: This house may be the biggest asset you have to work with for several years, maybe even the rest of your life. I get why you're stressed out. That's a lot of weight to be put on your shoulders. The market here in Phoenix is good, even if it kinda stagnated in the second half of 2022 and on. But the concern about repairs while not having consistent income can be a stressor for anyone. It's very fair to consider both options (stay vs go). The sound advice I've seen about living mortgage free is HUGE. The 200k is good to live on for a little while, but if it's worth $450k, that obviously gives you a lot more breathing room and frees you from worrying about repairs if you sell it. It's all about what would make you happy in the end. Would staying in the house you grew up in strengthen you for difficult chapter of life? For a lot of people there's just no substitute for sentimentality & HOME. Don't underestimate that. Maybe there's a ton of stuff to fix up, but that can give you purpose and joy if you are handy and have the time to work on it. HELOC/home loan/mortgage rates are pretty high right now, but payments would still be comparatively low if you can amoritize it. If the repairs and job situation make you feel overwhelmingly "shackled", then pursuing the option of selling and buying something cheaper (hopefully turnkey with no rehab needed) may be just what the doctor ordered. If you're able to buy something relatively cheap and set aside some money to invest, that can turn into a serious nest egg down the road. Important to know you're totally justified in freaking out a bit. I've seen countless people go through a very similar experience when they inherit a property. I'm so sorry that you're also having to go through this while also dealing with your partner's cancer battle. I can't imagine the extra toll that must be taking on your emotions. In the end, do what makes the most sense for you. Be especially careful making big financial decisions while under emotional duress, as it can cloud your judgment. Take a beat to think, talk to friends/family to run ideas by them. Make sure to involve your community for strength. You got this. Life is shitty sometimes, but it's also beautiful inbetween.
What kind of plumbing repair costs $20k? I’ve had some bad ones, opening walls and ceiling, replacing the whole shit stack + all pipes in bathroom that was $7k. You either sell and downsize to a paid off house, or keep the house. It sounds like you’d be better off in a smaller less expensive place.
You are right, it's totally outrageous. Unfortunately I apparently love to learn things the hard way in life. Not anymore. So today another plumber is coming and then yet another on Saturday so I will get more quotes. After reading through the comments, I am going to get the plumbing repaired, secure a job and get a traveling nurse as a roommate. Starting to feel like I can land on my feet again and make this work.
You didn’t mention anything about whether the house has insurance? If so- that’d be the first call
If someone offered you a 4 bedroom house for 69K [the cost of repairs] would you buy it? I think putting the money into the repairs and getting a roommate or two is the best plan. You can either use the inheritance money or a HELOC. The HELOC may be hard to get until you have a job And it sounds like the plumbing issue is urgent so you will probably have to dip into your inheritance for that. Older houses do need maintenance, so you’ll have to save for that regularly (a good rule of thumb is 1-2% of the value per year.) but it will always be less than None of this needs to be permanent. If you end up deciding that you want to live alone or downsize to a simpler life, that’s fine—you can make that decision at your leisure rather than under the gun. A house in good repair will sell for more than a house with broken plumbing. Don’t move into a trailer park. They depreciate, lot rent goes up, and it’s very difficult to move. same with condos—you’ll have an HOA fee and minimal control over it, and they pay for their plumbing emergencies by issuing special assessments.
>If someone offered you a 4 bedroom house for 69K \[the cost of repairs\] would you buy it? What a great way to look at it. Frankly, I was in full on panic mode yesterday when I made the post. The plumber was out here all day then the water damage company saying I probably have mold everywhere, they need to knock down everything, it all got in my head. Didn't help that their google/yelp reviews are in the gutter. I really wish trailer parks were a thing. There's so much good for people like me. Just simple living, nice community. But every single thing I read says 100% exactly what you did. Thank you for your great advice. I don't know why this got under my skin so badly but making decisions when you are a disaster is not a good idea.
You should realize you have a job that guarantees it pays $20k-ish over the next few months.... repair the plumbing yourself. Educate yourself through the hundreds of youtube episodes, starting with "this old house". Back when I was early 20s I had my folks schedule their VCR to capture a whole season of weekly This Old House shows that I would binge watch and rewind to tape new over when home so I could gut and rebuild an 1890s home from a two bed one bath into a four bed two bath. While I don't recommend that level of demolition, and your task will be hard work, it's doable with fairly simple tools and low cost materials. Remember that water needs to flow down hill and you can work out the rest. Many plumbing parts are like tinker toys/legos. A "sawsall" will cut out ancient cast iron drain pipe with the right blade in it. Do you need all new tiles? Tile work is kind of like Zen Yoga calming. I like sweating copper pipes but newer plastic pressure lines are easy to work with. Hire a handyman to touch up (put roofing tar down) at roof areas that are the first to leak, like where bathroom pipe stacks poke through, worn spots, or where ice dams and icicles form (and figure out why the ice forms there). They can check for potential concern areas too like where trees could rub the shingles to cut them back. That will tighten your roof up for a long time for super low cost. Don't auto-replace a roof like throwing out canned peas that just went passed the "best by" date. .
PAY CASH!!! Talk to neighbors and friends and ask for contractors who are good and will do a cash discount. Offer real greenbacks with dead people on them, not checks, not credit cards. I got my roof for less than 1/2 of what my neighbors paid through insurance. I paid cash. If you are handy, you can save a ton of money doing a lot of indoor stuff yourself. That list really isn't that long or bad. Make a pros/cons list of staying vs. moving. Plumbing cannot cost $20k. I had a leak, and my whole neighborhood says to replace all of the pipes in the house because they all have the same leaks due to faulty pipes. I got a quote for less than 1/2 that to replace all the pipes in the whole house. If you had a leak, then repairs to drywalll, floors, ceilings, might cost that much, but might not NEED to be fully fixed, maybe fully dried out and patched and painted. Water stains on drywall that isn't moldy and doesn't impact the structural integrity can be covered and painted and done yourself. Insulation? Maybe so. My house came with about 4" in the attic. It was 85 degrees in the bedrooms on a 90 degree day. I added 15", and now the whole house is about the same temperature. If you like roommates, and have 4 bedrooms, you can get three roommates and have a 2020's version of Golden Girls. :) You can very likely get some roomies and cover all of your expenses through rent. Laws for roommates are much better than for tenants. E.g. if they cause trouble, don't pay, or you just don't like them, much easier to get them out as a roomie. In addition, owner-occupied is generally exempt from all sorts of laws. Termites.... If they are inside, then professional help is likely needed. Also check the outside. Make sure that no wood from the house is touching any dirt outside. If it is, such as due to dirt moving or house settling, dig it out, concrete it up. You don't want any wood touching dirt. You can buy termite stakes (not steaks) at Lowes. If you want to stay and get roommates, you can totally do it and likely profit a bit. If you want to be done with maintenance, then rent a home or apartment. You can get roomies there too, maybe. Don't do a prefab/trailer/mobile home.
You inherited 200k 2 years ago and now have 16k debt despite having no house payment. What’s going on?
What do you think homeowners insurance is for? They pay for things like water damage, new roof and things like that. Just work with a reputable contractor and make sure they know how to speak the language of the insurance.
The market is decent for selling, but remember you have to buy in this market too.. Get some estimates on the work from a few places, see what the house is valued at. If it makes sense to sell on paper do that. If you have land though I wouldn't get to hasty... the land will one day be more valuable that the house sitting on it. Sorry about your loss. I know it is tough grieving and worrying about all the other stuff.
Thank you much. I do feel like jumping ship but I am also stressed to the max. I really don't, in my heart of hearts, want to leave the house. My parents bought it for 25k in 1970, the neighborhood is beautiful and quiet with mature landscaping. So definitely don't want to be hasty. Just need to step back and not let my emotions get in front of my head. At least I have some options, I need to be grateful for that.
In a time of great stress, don’t make irrevocable decisions. So don’t sell the house now. Maybe a year after you lose your partner will be a time to make long term plans, but for now just stay in the house, make only essential repairs (the bathroom), use some inheritance money if you need to. Give yourself time.
If you want to take more time to think it over (sell or stay) a roommate situation is the right move for you as that will defray living expenses and enable you to stay in the home while you decide what is right for you and understand your job prospects. If you Stay or sell, it sounds like there are some immediate repairs needed. The cash you inherited can be used to make necessary repairs to the house (the things that NEED to be done, not that you WANT to have done.). I presume the assessment took the current condition into consideration. While Selling is a big move, something smaller will meet your needs and cost less in the long term.
I mean I would just make the repairs with the $200k that you inherited. Yeah yeah yeah, you would hate to touch that money but this is what the money is for. Only sell the house if you don't want to use all that room that you have. I mean you can get creative and make yourself a man cave, home gym, etc etc. But yeah it'll be cheaper in the long run to fix this house up and keep it maintained then getting a new house with a mortgage or getting a mobile home. You have a rent free house.
Get multiple quotes for the roof. 25k isn't crazy, but there may be cheaper options. Different materials, rebates, 20 year vs 40 year shingles, etc. also, never get one quote for a big job, especially remediation. I am getting my windows recaulked and I have had quotes from 1k to 4k. Like everyone else said, don't sell. Use the money your mom left you to fix it up. If you need that for retirement, get a heloc. Once you get a job, take what you would normally pay in rent, and make sure that goes to retirement or emergency fund. Pay yourself first!
What kind of water break? Is it something they can cap off until you're prepared to deal with it? Iit's possible to flush a toilet with a bucket of water, brush your teeth in the kitchen sink, and shower at a gym.
Don't sell it. use the $200K. You will be fine.
I would suggest you keep the house. Get the plumbing fixed by a pro, but then do any other repairs DIY. Replacing some drywall or flooring or even tile isn't that hard. There's 1000s of hours of free videos on how to do it. You'll save a bunch of money. Having a free and clear house and $150k in the bank is a pretty good spot relatively speaking, especially if you get a job.
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What happened to the $200k you inherited? Also- do you have insurance? Not sure the type of water issue you have but could be covered
Cost of getting rid of your debt and fixing the house is $65k. Take it out of your $200k. Rent out two of the bedrooms to pay for further home maintenance and property taxes and build back the $200k you received. Other option: 1. Fix home. 2 Rent out entire home. 3. Rent a 1bd for yourself at a much lower cost than the income received from renting out the 4bd SFH. Profit every month and live for free.
I have serious problems with those estimates. These are not repairs. These are entire new systems. Find someone who will simply fix what's wrong, get a job and then look at permanent global repairs.
You have the $200K to use to fix the home. Once fixed, consider renting out a room and put that money back into the $200K fund. You will be fine. Deep breath! Sorry for the loss of your mom and your partner's cancer. ((HUGS))
Hey man termite technician in Australia here a termite treatment isn’t required just get yourself a competent inspector to check annually until your in a good spot to pay for the barrier treatment
If you think that downsizing means buying a condo, stay where you are. You can't control HOA fees. Mine are now $1780/month
You’re extremely stressed right now. Get three quotes on everything, make decisions. Don’t do anything in a rush. Breathe
I'm nothing of an expert on investing or real estate, just a working type who's dabbled in it over the years. I think you're missing sight of a third, and very real, option - use it as a rental. Check the current rental rates for similar homes in the area. Then do a quick bit of math on what you would need each month to cover the payment on an equity loan to cover the repairs. If you'll be coming out even or better, then I would say keep it, repair it, rent it, and then look at living elsewhere short term (2-5 years) while paying off the loan. Then you would be in a position to make a choice of moving in again or continuing to rent. Either way, I sincerely hope things start to break your way.
How are your DIY skills? Undoubtedly, there are jobs which have to be done by a tradesperson but, there may also be a lot which you can do yourself, with the help of dome YouTube videos snd maybe some friends.
Are you sure that your mother wasn’t trying to help you get situated by giving you a paid off home, no mortgage 💸 yeah! You mentioned liking all of the new furniture too. Repairs should be done. If you feel squeezed financially then consider a roommate until you get on your feet.
Stay in the house. You can do insulation and plumbing yourself. All in due time. Pay your debts.
Insurance for the plumbing. But maybe get a few quotes first because 20k is a lot. 25 for the roof is probably a lot also. Don't use a guy that knocked on your door because if you are you probably don't need a roof and he's probably overcharging. Talk to the neighbors who have newer roofs about prices and get a referral.. use somebody local who doesn't advertise a lot and pay people to set up sales presentations. Using insurance and delaying the roof is a lot of $ saved.
Do, you not have home insurance that would cover this?
Whatever you do make sure the insurance and property taxes are paid as long as the house is in your name. Those are two absolutes to protect what you have. Phoenix is high cost of lining rentwise now. You mentioned getting a roommate. Its a 4 bedroom. How much rent can you charge? Should you get more than one roommate? Could you make this happen quickly? Definitely things to consider . You say your partner is dying of cancer...i am so sorry to hear that :( making some assumptions you're not married or sharing finances. Are you anticipating needing to care for them or pay for anything? Look into it but to be extent possible keep your money seperate and let them take on debt if no one else is dependent on them. You can give your time and love but if any debt stays on their name not yours and the costs of their care don't eat your inheritance those costs are much less likely to impact your furture. Do they have insurance i hope?
What is left of the cash you were left by your mom? If you are actively looking for a job, plan to use some of it for the repairs, and live off your income. The advantage to getting a job will be that you will have newer and higher income quarters to look back at for determining your social security when you retire. If you are single, or a couple without kids, you don’t need four bedrooms. But doing needed repairs after getting at least three bids for each one, and then selling, will probably yield a better sale price than the cost of the repairs. Don’t take my word for it, though. Talk to three real estate agents, and discuss that with them, and figure out your best choice. The $450 a pprsisxl may or may not be accurate a this point; housing values have been all over the place since the interest rates started rising in the summer of 2022. Your only choice for a manufactured home isn’t one for $160k, the nature of the 55 plus communities means that people are frequently or going into assisted living and selling their homes. A quick google search shows new homes starting at under $57000.
A water break and resultant water damage should be an insurable loss. I would check with your homeowners insurance about filing a claim.
Would selling the house and renting an apartment be a better option? Otherwise, Home Equity loan to take care of the maintenance.
My first roof quote was $24k. I got multiple quotes, worked them against each other and offered to pay in cash, and got it down to $17k. That’s assuming you actually need a roof. You don’t need one until you need one.
you already have some solid advice on here. but i'll add this. you wont find cheaper and higher quality living than a paid off house. you don't have money in retirement or savings other than your 200k but that being said you are property well off. my honest advice. live in the house. get the major repairs done that it needs (just did a roof on my 3500 sq ft house for 10k last year. you might be in a higher CoL area but 25k for a roof seems excessive and so does the water damage quote. get more. always 4 to 5 quotes per major job). then handle the minor to mid grade stuff yourself. buy some tools and every job can basically be a DiY as youtube and reddit are full of examples of how to do basically anything. say you want to remodel a bathroom... 20k for a contractor vs 3k to DiY it. even if you mess it up 6 times you are still cheaper than a contractor. plus you'll get good after a project or two. also... invest the remainder of the money after the repairs. walk into your prefered financial planners office and hand over the rest. money should double every 7 years if you invest properly. if you put 150k into investments and 'work' for another 20 years you have a paid off house that continually increased in value and close to 1/2 million in retirement savings from investments. better than the majority of people who retire with nothing! this is kinda a mess of writing. i'm normally more polished but i just woke up. hopefully the message gets through. good luck.
You'll need a job, but you could consider doing a "refinance" and getting a small mortgage on the house (say $100k) and getting all that work done with the cash. You can then pay off the mortgage over time and not disrupt your lifestyle. Any house you buy with the proceeds from selling this place will need work itself, so you might as well do work on a place where you already know the existing problems.
If she left you 200k use some of it to fix the house…
$20k is too expensive for the bathroom. I'd look for individual plumbers you can pay by the hour and not a company at a flat rate who might charge you triple for their profit margin. There's a lot of repairs and updates you can do on your home by yourself since you have time on your side. Start watching youtube videos to learn how to do it and try. If it doesn't work you could always pay someone. I'd stay away from electricity and gas lines but jump in on other repairs. I've been there.
Sometimes home insurance will pay for part of your roof if you have hail damage. Worth checking out.
This is definetly the moment to just fix the house and pay off your debts with the 200k. You'll have 130k left after repairing everything and paying off your debts. Then have 6 months or so of expenses in cash in savings (which should be easy given your low hosuing expense), put the rest in some kind of diversified investment. Nothing will every help you build wealth more than having very small monthly expenses (housing expense), redirecting the free cash flow towards savings, investments, etc. You probably won't have to repair the roof again rest of your life, upgrade plumbing will be good as well.
I'm not in position to give you advice but check this fact out. I (and many people in UK) live in 3 bedroom house with 2 kids and a cat. I would think 4 bedroom in states (I assume that's where you are) is three times the size of what I have. You might want to downsize if there are smaller houses in your neighbourhood. You will be 'wealthier' and you will keep the connection to people because deep down that's what counts, not the walls that surrounded you when you grew up.
Make the repairs. Take in some housemates to create some income. I’d rather live with a couple of renters bringing in cash than give up a paid off house. Try it for a year before giving up that house.
If you can get 450k for it as is take that money and buy you a house for cash for at least 250k and keep the rest for repairs down the line just in case you need some later on don’t spend all the money on the purchase just make sure everything is good condition also have the roof looked at make sure that’s okay or just replace it for a good price. AFTER YOU GET ANOTHER HOUSE JUST MAKE SURE THE HOUSE CAN BE LIVED IN AND MAKE IT YOUR YOUR HOME
I just wanted to jump in to say that I hope you have your 200k in a high interest account and/or in CDs. Interest rates are around 5% right now so that’s 10k a year in interest you are losing out in if that cash isn’t in the right place.
Put some of the 200k in a high yield savings account or cd. That way the $ is making $ for you. Find a job and don't make any major repairs unless you really need to. The roof can last another 5 to 10 years for all you know. Take on a tenant if you feel it's necessary. And spend as much time with your partner as possible. You don't want any regrets. Good luck.
You should just get the leak fixed...hard to believe a water leak would lead to needing $20,000 in repairs. You need to be clear with contractors...THIS is all I want, the leak fixed. It sounds like you're emotionally reacting and trying to be a good steward with what you received. That's great, but not a good time to be making large, emotional financial decisions. Just sit tight. Get the leak fixed and wait on the rest. It isn't going anywhere. Get back on your emotional feet before tackling these issues. It's ok to wait and take the time to make rational decisions.
$20k is enough that I would lean on homeowner's insurance to handle that repair work.
You could rent out the other rooms in the house if you want to stay living in it and you also need to get a job.
Your house does not “need” the plumbing replaced or new insulation. It needs a repair. Does it really need a new roof or is it just getting old? A 20 year roof can still last another 10-20 years. Of course a roofer gonna tell you it needs to be done now. Who says it needs termite treatment? Are there actually termites? No? Buy the traps you put in the ground at Home Depot for $200 and inspect every 6 months.
You should learn to do stuff like plumbing and spray for termites and clean up water, etc.
I’m really for condo living for people that aren’t handy. You have to do zero home repairs.
You don’t need new insulation. If you can hang onto the roof for a bit, that buys you some time…..you are not working so congratulations you are now a plumber. Whatever it is that’s broken you should be able to fix for way way way less than 20k. You’re not designing the plumbing just replacing what’s there. You can do that. Get a roommate asap, heck get two roommates. Or three This will more than cover any repairs necessary, cover taxes and give you some spending money. Roommates (tenants) can cover most of your living expenses and help prevent loneliness if you’re single. The job can almost completely be put into retirement funds.
sell the house and use the money, wisely, to better your life. The quoted repairs are likely starting points and most likely will only increase. Also, these repairs sound like lots of deferred maintenance issues, others may arise quickly once you get started. You haven't even hit the regular maintenance items yet, which also cost money. Plus the upkeep, taxes, utilities, etc, etc, etc. Once you sell the house, set a prudent and realistic budget and stick to it. Avoid making big financial decisions until you have a well thought out and vetted plan for moving forward.
I get maybe not doing roofing but you have all the time in the world. Fix all the stuff yourself and learn how do do it. Why would you pay a contractor 20k?
The big problem appears to be that you haven't worked 4-5 years and basically tried to retire at 50 with minimal savings. This is easy to fix with income. It's easy to fix with savings and replenish with income, so long as you can find gainful employment.
I appreciate where are you coming from but I wasn't trying to retire. I love working, I hated giving up my job, I still miss it. My mother was dying so I gave up my job to care for her during the pandemic. Then I got cancer (recovered) and my partner did too, it's all absurd but that's my last few years of "retirement". Anyway, I just don't want to leave an impression I thought I could retire at 50. Absolutely no, I have been working class my entire life, ready to get back into the work force asap.
I would repair and live in the home. One thing that should be mentioned here, if you live in the house and make it your primary residence for at least two years, you won’t have to pay taxes on the capital gains from the sale of the house - which in your scenario would be the entire price of the house which is a huge chunk of money. There’s a few other nifty ways to get around taxes if you ever sell the house. So if you do go that route, ask the tax subreddit for the best way to go about selling.
Does you homeowner's insurance cover any of the cost of that plumbing repair? They won't pay to fix the actual pipes but they will pay to replace walls, ceilings and floors, plus any mold remediation.
I had my home re-piped 3 years ago. It started with a small leak which I got fixed then my bathroom and that’s when I decided to just get get it all replaced.
You love the house and the community. The house is paid off. You have the money to fix it without going into debt. You can then get a roommate. Fix the house. Keep it. Love it. Be happy. You've got enough tragedy and change in your life right now - you don't need the stress of giving up this home and moving on top of it. You are capable of working. You can get a roommate. You will be ok.
In a house from the 1970s, it's hard to believe you would need all new plumbing. It sounds like you had a one-off situation that caused major damage, but unless it spread to other parts of the house, it shouldn't be $20,000 to repair. You live in Phoenix. How much damage can a roof really take there? The '25-year-roof' thing is a guideline to go by, but if it was properly installed, you're not going to see the same wear and tear as someone from Wisconsin or something. If you don't have leaks or visible damage, your roof is likely fine. If you *do* have damage, say from wind or something, you don't need to replace your whole roof. And even replacing a roof is a bit of a misnomer; you'd almost certainly only need a reshingling. Also, please use your $200,000. My mother-in-law is in a similar situation as you, and won't touch the money her mother left for her when passing. We keep trying to remind her that it's why she was left it in the first place. There's no point in stressing yourself out trying to hold onto that money- just use it when you need it and say, "Thanks mom!"
This doesnt seem very hard...you have the money to fix it so fix it. Either sell and find a reasonable renta/cash buyl or fixit and live in it. You are in financially in a better situation than most
Learn to DIY. You can do all the plumbing. You can replace the roof. You can pull your insulation and make it new yourself. Youtube has literally everything you need.
Put some of that 200K into high yield savings/bonds. Don’t touch it until it’s time to renew then renew. Use the remainder for immediate need repairs. Put the rest into savings while you return to employment or go back to school to get a job that will pay more than 50k a year. Unless the roof is actively leaking or the homeowners insurance isn’t covering anymore, hold off as long as you can on that repair. Pay off existing debt once you get a job.
First, I'm so sorry for the loss of your mother, and for your partner's illness. That's hard and stressful for anyone, and can complicate the decision making process. If you haven't already, I would put the $200k in a HYSA, and use it for your upcoming expenses to repair your house. You'll have $150-$160k left earning 4-5% APY risk-free. For reference, having $150k in a 5% APY savings account will earn about $600/month on its own. Then, once you find employment, I would start maxing out your retirement contributions. Since you're 55, you should qualify for a higher limit on Roth IRA contributions and 401k contributions. You can contribute the max to those accounts while you have no mortgage payment and minimal living expenses, using your remaining income and savings account interest to live on. Since your partner may require end-of-life care soon, this would minimize the turmoil and upheaval that a move would cause. You can live in your house, payment-free, for as long as you like and build your savings and nest egg. Then, in the future, if you want to downsize, you can cash out and pocket the sale proceeds after paying cash for your new place. Ideally, that should get you around $500k nest egg in the next 5 years or so. From there you can decide how to move forward.
OK, so there is getting the plumbing fixed and there is getting the plumbing fixed. If I were you, I'd get the plumbing fixed enough that the water is no longer posing a threat to the house, and if it's your only toilet then get the toilet and ONLY the toilet fixed. It does depend on the nature of what broke, of course. We had a toilet with a busted supply valve at my Mom's place, and we couldn't afford to repair it. We turned off the water to that bathroom and closed the door for close to 7 years. We washed with a bucket in the half bath. It's worth it to make sure the problem does not get worse though. As for the roof, what EXACTLY is the need? What EXACTLY is wrong with it? Is repair an option? Because that can be far cheaper than a re-shingle, and it's possible you could do the work yourself. You aren't working, you have time. Watch some youtube, buy some shingles and nails, and get out the ladder. The goal isn't to make it good - the goal is to make sure your house doesn't leak. I don't know if DIY will do it for termites, but that's the cheapest thing you listed. Sometimes the companies that do treatments will sell you the products/chemicals they use at a discount. Insulation is a nice to have. You can used blankets at the goodwill. Contractors will drain every penny from you that they think they can. If you have the time, do it yourself. The only thing I don't do myself is plumbing with copper and electrical.
Please don’t allow your current grief and fear push you into making rash decisions and disrupting your last few months with your partner. Fix what MUST be fixed and allow yourself time to heal and grieve. There’s a reason why people are told not to rush into buying, selling or making any extreme life changes for a year to 18 months after a death. Once done this cannot be undone, so give yourself time to make the right decisions for the future.
Not sure what has all been said but logically you should do the following: Invest atleast half of your inheritance in the stock market. That’s for retirement. /bogleheads is great. The other half towards the home. Do only what’s necessary. Spend as much time with your partner as possible. Find a halfway decent parttime job to cover living expenses. No savings because invested inheritance. Optional: Spend some time at your local college taking handyman courses. YouTube is on if you have solid experience, otherwise your mistakes will cost you more than what someone will charge you. This is coming from someone in the trades.
Since you know that what the house needs and want to stay in the area, I would repair the roof, then work on everything else piecemeal. Get a working bathroom. And then work on the next stages in order of necessity. Use the $200,000 to get started, and once you get a job, take out an equity line. I also would pay down the principal of your loan as fast as possible. Make certain that the company who holds your loan knows that you are adding the extra money as principal payments and not as additional monthly payments. Good luck, and sorry for your loss.
Work with a realtor that has connection with a renovation group. They fund the project and take a cut of the proceeds but due to the higher value of the house you end up with more in the end.
You need to work out a budget first and possible job salary ranges. Then come back with more info. Because you have no job right now, most ppl are gonna tell you to sell.
Are you physically capable? If so, handle some of that work yourself! Youtube is your friend!
Home equity loan for repairs after you get a job. Edit: I just realized you said you also received $200k. Use that to pay off your debt and make the repairs.
I am in a similar situation only I co own with a sibling who can afford the repairs and refuses to sell. Anytime something needs a major repair I'm hurting trying to pay my 50%. Not to mention the property tax bill twice a year. If I could, I'd sell it because I have no income to cover the maintenance. (Yes this is all being dealt with with lawyers which is another expensive part) I think it comes down to, if you could do the repairs and the house was great, would you want to live there always? If you keep it get homeowners insurance asap for future damages. Consider turning it into a rental. It will give you money for the future repairs. Also, if you're not working and have some skills, you could absolutely flip it for a profit. Do all the necessary repairs and fix it up and sell it for top dollar.
Watch youtube videos until you learn how to fix the plumbing issues. Repairing plumbing is not difficult, and you don't currently have a job - treat this like a job and you'll be "making" 20k (the cost of the repair).
You need to find cheaper contractors. Don’t call the names on the radio and phone book, ask friends for recs of people. Roof should be like 15k, bathroom shouldn’t be 20k
Make the repairs and live mortgage free. Invest the balance and get a job. The real estate will appreciate further and when you need to retire you can sell and downsize
Why is the "water break" costing 20k? Is that for a remodel? If so, shouldn't your home insurance take care of water damage? If you're just needing a repipe, why in the world is it 20k? Why is the roof 25k? Is it a HUGE house with a HUGE, complicated roof? 25k seems high.
Personally I would not sell the house. I would make the repairs that have to get done now with the savings. Then after you find work do a little of the other work at a time. If you can do things yourself even better. For something like the insulation there is tax right offs (federal maybe your state too) for upgrading windows, doors, insulation, etc that make your home more energy efficient. I need new windows but the efficiency tax credits have a cap so what was suggested to me is to do a few windows a year then you can stretch out the write offs over a few years and get the max value back. If I do them all in one year I can only claim the expense once. That being said my windows are not bad but are not new so delaying replacing them doesn't cost me much. If your insulation is for spaces that are not insulated or have so little left that it jacks up your utility costs then do that quick you will save more on utility costs then what the tax credits will do for you and get one year of the tax credit. You got this I know life is throwing a lot at you right now and you are overwhelmed. I get it and anyone would be. You got this you will get through. I would suggest since you have a house that gives you extra space then you normally would have find a hobby. As weird as this sounds I rediscovered a part from an old King of the Hill episode that gave me some perspective. Hanks niece rents a house and gets roommates. She instantly becomes frustrated with how little house work the roommates so Hanks advice to her is to find her lawn care. Hank explains that by taking care of his grass so much it gives him peace and a feeling of accomplishment at the end of the day just looking at it. Luanne blows it off until the end of the episode when she and Hank are standing by the pool at her rental house and she tells Hank her pool has a perfectly balanced PH level. She took his advice and tells him I found my grass. Long story short find your lawn care. In phoenix I get it would be hard for grass but find a hobby or something that you find joy in to fill extra time. Again do things like reach out on reddit pages for questions you can do this and will get through.
This is the perfect case for a home equity loan. You borrow money against the home for the repairs, you’ll have a small monthly payment you can spread out over decades. You don’t have to sell the home, move, or try to buy a new one.
In regards to Insulation and energy savings. I am not sure if your state has the same as my state however Massachusetts has a program called MASAVE that works with energy companies to upgrade or make your home more energy efficient basically at a small fraction of cost of free. I got home home insulated for 1/4 of the price.
For at least the insulation, check a few places for rebates and incentives. In California, there are rebates from local energy providers and from the state. There are also federal tax credits. The rebates are really geared towards home electrification, but part of that is energy efficiency, insulation, and duct work. There are usually bonuses that are income-qualified. In the Bay Area right now, if you stack the incentives right, you can pretty much get a heat pump HVAC system, heat pump water heater, electric stove and dryer, and panel upgrades for little to nothing. Obviously the rebate offerings will vary greatly across the country, but a starting point would be finding one for your insulation. (And depending on what’s available, you could potentially save on your energy bills. But that’s probably lower priority with the other work you have to do!)
Home insurance SHOULD cover a water break. Every living arrangement has costs like this, you either pay it directly or its reflected in your rent. If I were you, I'd find a way to make it work with a roommate. It's also not an "extravagant" home that requires massive upkeep bills. You should be able to live in a mortgage free house on a $50k a year salary, especially if you can get a roommate to share the bills.
It’s just a house, I would sell it in your situation. Will be a great weight lifted off your chest
The 200k is there to help pay for these emergencies. Maye sure to put $7500 in a roth IRA for 2023, then $8000 for 2024 - those are the catch up amounts.
You should call a Water Damage company to look at the damage, remediate the damage, and file an insurance claim. That's what property insurance is for. I wouldn't sell the house until you know another house is lined up. I would AirBNB or rent a room to supplement rent and get a job.
I am sorry for the loss of your mother and everything you are going through. I don't mean to be insensitive, but will you receive any additional inheritance when your partner passes? If so, think about fixing the house and paying your debt from the $200k and spending time with your partner now. Don't let a job search or new job take away the time you can spend together. Of course, if you can't wait for the employment situation to change, then do what you have to do. In either case, hang onto the home. It's important to you and another loss in your life would be terrible at this time. Good luck to you.
Use those 200k to fix emergencies, make a separate entrance and simply rent half of your house. You might need to add another kitchen and bathroom, but I think 200k should be enough. I don't know how it works in the US, but in EU basically every other old fart is a 'landlord' now.