I need advice but because so many people I know are struggling I don't feel comfortable asking anyone I know in the real world. Plus, no one who knows me knows my financial situation.
I am 41, self-employed and currently make a very good living. While I might not make as much as I do now in the future I expect to continue doing well for at least the next few years (but again, I'm self-employed so there are of course no guarantees.) I'm single and have no one to fall back on if I struggle financially so it's important I make smart decisions.
I max out my retirement and have 16 months of savings in an emergency fund. I think real estate is a good investment now in certain areas of the country so I bought 5 houses - 4 free and clear, 1 with financing. 2 of the properties are rented and 3 are in various stages of rehab but I expect those 3 to be rented within the next 2-3 months. I also have a mortgage on my residence. Having debt really bothers me, but I know there are times when it's 'good.'
My parents are snow birds who live in my town 5 months out of the year. They are retired but don't have a lot of extra money. Previously they rented a car but this year the cheapest rental fee was $4,500 for their stay. I drive an 11 year old car and had been thinking about getting a new car anyway so I bought a car for them to use while they are here. I will probably drive the new car when they leave and go back to my old one when they visit.
I always way overpay my taxes so will be getting enough back to payoff the car which is what I thought I would do when I bought it. Then, I realized I could instead use that money to buy another house that will have a positive cash flow of about $400/month after expenses.
My dilemma: Should I pay off the car loan or should I invest that money in another house?
If the economy wasn't so crazy I would invest in the house but with all the doom and gloom I don't know if that is smart to do or if I should just hunker down and get rid of the car loan.
Any advice? Thanks in advance.
I am 41, self-employed and currently make a very good living. While I might not make as much as I do now in the future I expect to continue doing well for at least the next few years (but again, I'm self-employed so there are of course no guarantees.) I'm single and have no one to fall back on if I struggle financially so it's important I make smart decisions.
I max out my retirement and have 16 months of savings in an emergency fund. I think real estate is a good investment now in certain areas of the country so I bought 5 houses - 4 free and clear, 1 with financing. 2 of the properties are rented and 3 are in various stages of rehab but I expect those 3 to be rented within the next 2-3 months. I also have a mortgage on my residence. Having debt really bothers me, but I know there are times when it's 'good.'
My parents are snow birds who live in my town 5 months out of the year. They are retired but don't have a lot of extra money. Previously they rented a car but this year the cheapest rental fee was $4,500 for their stay. I drive an 11 year old car and had been thinking about getting a new car anyway so I bought a car for them to use while they are here. I will probably drive the new car when they leave and go back to my old one when they visit.
I always way overpay my taxes so will be getting enough back to payoff the car which is what I thought I would do when I bought it. Then, I realized I could instead use that money to buy another house that will have a positive cash flow of about $400/month after expenses.
My dilemma: Should I pay off the car loan or should I invest that money in another house?
If the economy wasn't so crazy I would invest in the house but with all the doom and gloom I don't know if that is smart to do or if I should just hunker down and get rid of the car loan.
Any advice? Thanks in advance.
