Short Cliffs:

1) Inherited a house that needs work and have sat on it for 5 years.
2) Housing and credit market stinks.
3) Posted house on Craigslist at a good discount with potential owner financing.
4) Sell home to be smart or get a car that I want (not afford).

If sells, smart move is to invest or pay off debt. Second best move is to get some money against the house and remodeled it to bring in more (despite the shaky housing market).

Instead, I want to go this route. (Can be argued, smart moves will always trump "wants" at any age of one's life.)

I want to drop $58K on a 2011 Mustang GT500 Shelby, SVT, white with red racing stripes and all of the options. Interior, black with red accents.



I know when I buy it, it drops to $30K value.

Any advice?

 

fix the house with debt. sell house in a year. pay debt buy used stang. cake. eat. too.

 

werd. what a dessert.

 

Selling a house for a car? it's supposed to go the other way around.

 

QFT.

If the house is paid off, then take a little equity out and fix it up just enough to make the value of the house comparable to surrounding properties in the area. This way it will sell fast without hurting your wallet. Once it sells, put some money down on a new car and put the rest in the bank.

OR

Fix it up and make the house work for you by renting it out. This is what I would do, especially if the house is paid off. Some may see this is as an unwanted headache, while others may see it as a good way to make some extra money each month, I would go with the latter. Good luck!!

 

Ummm fix the house and live debt free. Worry about the car once your debts are taken care of.

 

x2

 

I think you know the answer to your own question. The only thing to consider here is if you want to do the right thing or not.

Two words: delayed gratification.

 

I'm a little unsure what it is you're exactly enquiring. Are you saying that you want to sell a house you inherited (I assume without encumbrances), take the proceeds from the sale, and then purchase a car?

I'm a car guy, but if you're considering taking the profit from the house and buying a car, then I think you're making a tremendous mistake. I don't agree the Shelby will drop in value by half immediately, but it will depreciate. The house, even in today's economic climate, will not depreciate at the same rate of the car. You may even gain a point or two a year. In the following years you will most likely realize a greater return. The house is an asset. The car a liability.

I look at the house you inherited as an asset. And from assets arise other assets. I know what I'd do, but I won't bore anyone here with that. Keep the house, repair as needed, and be prepared for any upswings.



Terry

 

I don't know about you. But if it was me, I'd keep the house, fix it up, and sell it later down the road. The market is down for now, but in time, it'll go back up again. Free house is free equity. Making that free house look good will only net you higher profit in the long run.

 

Fix it up enough to rent it out. You will have a residual income from it, which will pay down / off your debt. Once you get to that point, just keep the money coming in and you'll be able to afford what you want when you want.

 

keep the house.

 

Seriously though, as awesome as it would be to have a 2011 GT500, I think you need to take care of any debts you already have, invest a good chunk of what's left over and for sure put a little bit aside to have some fun with, just not 58k worth.

 

how much work does the house need to make it liveable and competitive? If not much, I'd suggest you invest in it and rent it out to get some income. That income could be used towards a car fund and repaying your self for those repairs.

 

Great idea; Spend a little time, a little money, get it liveable and rent it out... That income coming in will be nothing but profit after a few months.

 

constant is: Sell.
Variables are: invest, payoff debt, or drop $58k on Shelby.

A. Sell + Invest = long term ( not guaranteed)
B. Sell + payoff debt = mid term ( save & invest or save for nused Shelby)
C. Sell + $58k Shelby = Short term ( have debt and no investment)

If you do not want to hold the house, I suggest B.

 

Keep the house. It is an investment. The car is not.

 

1) Keep the house.
2a) Renovate well and move in or
2b) Renovate minimally and rent out. Use rental income to pay down debt.
3) Buy a used GT500 in a couple of years.

 

You have a free house ... Unless it's a crackden I would try to keep it. Even to rent out.

For perspective, a 2010 GT500 with 5k miles can be had for $44k ... I realize the new one is better but $14k in depreciation in one year is insane when you could put that $14k into the house and get an income out of it.

 

where is this house? can you pm me the craigslist ad?

i would go house before car...

 

Assuming the house is paid off, get a line of credit and fix it up good.

Rent it out, pay off line of credit, relatively steady income revenue from rent. Put money toward whatever. Sell it down the road, pure profit.