One House Too Many

Caroline is getting married, and her fiancé has a home in Asheville while she owns a home in Charleston. Should they keep both homes, live in one, and rent one out? Or should they sell one of the homes?

QUESTION: Caroline in Charleston is getting married, and her fiancé has a home in Asheville while she owns a home in Charleston. They can pay off the Asheville home in six years and look at it as an investment. Should they keep both homes, live in one, and rent one out? Or should they sell one of the homes? Dave recommends selling one of them.

ANSWER: I would sell one of them. You don’t need to be long-distance landlording, and you don’t need all this debt when you are newly married. If you didn’t own it, you wouldn’t buy it as an investment. By keeping it, you bought it again. I’d sell it and make your life simple.

If you want to do some investments, do them in Charleston. If you have $212,000 left on the Charleston house and can pocket $500,000 from the Asheville house sale, then I would sell it and absolutely pay off the Charleston house. Be debt-free and then start investing the rest of it. If you want to do some real estate investing, I’d do it in your local area where you can lay your hands on it. That makes a ton of sense.

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