$50k on a Pied a Terre?

[Anonymous]

We came into an extra $50k and are debating how to invest it. One possibility is a small apartment downtown that we can use for work during the week and list for short-term rental on the weekends. Is this a good idea or should we stick with the more conventional approach of paying down DW’s student loans and paying off the hybrid SUV care note?

[Anonymous]

I wouldn't do anything until consumer debt was paid off

[Anonymous]

Only 50K down for a pied-a-terre? Wow, we're in Kansas here.

[Anonymous]

OP here, yes 20% of $250k studio downtown. Question, you consider both the car loan and student debt “consumer debt?”

[Anonymous]

Uh I don't know of any 250k studios downtown

[Anonymous]

Anonymous wrote:OP here, yes 20% of $250k studio downtown. Question, you consider both the car loan and student debt “consumer debt?”

NP but if I had a car loan then I wouldn't say that I had "an extra $50k".

[Anonymous]

Honestly I think it is a horrible idea. My rental properties are my rental properties. I don't try to live in them. Do you really want to be cleaning up and changing sheets every weekend so that you can use the place during the week? And ick factor - I don't want to lounge on a couch that strange butts are sitting on every weekend. I don't want to sleep all week in bed that a different stranger uses every week. And this is a STUDIO - it's not even like you can sequester them in a spare bedroom.

If you really want a pied a terre, then you probably need to live closer in to the city overall. I would use the 50k to buy a place that is better located for your every day life.

[Anonymous]

If you have student loans and a car loan, you don't have an extra 50K!

Pay off the car loan, pay off the student loan, and direct the payments you would have made into a retirement account. Win, Win, Win.

[Anonymous]

Anonymous wrote:list for short-term rental on the weekends.

You will almost certainly encounter problems from the HOA if you try to do this.

[Anonymous]

Anonymous wrote:Uh I don't know of any 250k studios downtown

Found one:
https://www.realtor.com/realestateandhomes-search/20001/beds-studio/price-255-250000

But if your car and student loan rates are over, say 6%, you may want to pay them off first. Renting out property is a hassle and a commitment.

If it were me, I'd invest in the stock market.

[Anonymous]

How much do you have in your emergency fund? Do have children or plan to have children? How much is in your retirement funds (how old are you)?

[Anonymous]

You'd have an extra mortgage every month + utilities, expenses, fees, etc. Unless you have a lot more disposable income, this is not a good idea.

[Anonymous]

Anonymous wrote:If you have student loans and a car loan, you don't have an extra 50K!

Pay off the car loan, pay off the student loan, and direct the payments you would have made into a retirement account. Win, Win, Win.

This.

[Anonymous]

Anonymous wrote:OP here, yes 20% of $250k studio downtown. Question, you consider both the car loan and student debt “consumer debt?”

What would you consider them, OP?

[Anonymous]

You'll also have the payment on the studio mortgage plus the monthly condo fee - what are the chances that even if you could rent it every weekend, you break even?