[Susy]

I own a house with around $75,000 left on the mortgage. We’ve used it as rental property, which we’re making ZERO profit on, & actually probably losing money on. Right now, one of our daughters, her husband, & 6yo son live in it. They just pay the mortgage amount (plus all utilities). Our house, the one we live in, we owe around $39,000, which we pay bi-monthly, and it’ll be paid off in the next couple years.

Should we sell my house (another one of our children wants to buy it next year… she & her fiance have worked on their credit & they are around 720! *proud momma here*) or should we keep it as an investment for the kids (we have 6) and pay it off after our house? When our house is paid off, we’d put extra payments on the principle several times a year to pay it off even earlier.

Several of our children struggle financially & we could see that house as a place to help them temporarily while they get their act together, but yet, we don’t want to enable them either.

When we die, we don’t want fights over the houses, so we’ll probably make them sell both houses & split the $ equally or figure something out that all the kids will agree on. Would you sell the house or keep it?

We’re still uncertain. We make ZERO profit from the house. Right now, we actually lose money because we do the landscaping and upkeep and we have to claim it on our federal, state, & local taxes.

[Candace]

I would ask the daughter who currently lives in the house what are their future plans. While you don’t want to enable your kids, if the daughter who currently lives there is not doing anything to better her family’s position, you might want to consider selling.

The fact that you do the landscaping and upkeep would indicate that your daughter and her husband do not value the opportunity that has been provided to them. You do not owe adult children anything. Whatever you do for them when they become an adult is a blessing — not an obligation. Selling the house would make a clean break and position you and your husband to focus on your future and retirement.

Have you seen: I’m looking for some advice with my rental property

[Victoria]

You need to talk to an accountant. There are going to be tax consequences if you sell. The tax laws are very different if you sell a rental property vs a property you live in, and you could end up owing more in taxes than any potential gain.

[Damaris]

Do you have enough money to cover your retirement?

If not, sell it and fully fund your retirement an investment accounts.

If you have enough, then do whatever you think is best for you and your family.

[Michelle]

Keep it and rent it out. Maybe make your kids pay rent and sign a lease. You could put the money away for them for a down payment if you do not want to charge them, use some to pay expenses

[Jennifer]

Take care of yourself first!! Do what’s best that will benefit your personal living situation. I’m 52 now but left home at 16. I have worked my butt off to make a life for myself because I didn’t get any family hand outs. I retired at 51. Even in this economy I retired early.

Life is hard and family helping family is great but someday you will be gone and your kids will need to know how to survive and thrive. Handouts are generous but it’s enabling in many ways. Even if you sold and saved your money and never needed it then you can divide it when you pass.

You have worked hard. You need to enjoy your life the way you have made it and enjoy retirement. It’s their responsibility to figure life out.

Sure no one wants to see their kids struggling but don’t you want to see them putting in the work to thrive and survive?

I have been married 30 years and have been the work horse, I never relied on my husband’s income because there was never a guarantee in life that would be there for me so I always made sure to work what what I need and his was and still is a bonus.

I personally believe I have had more in many ways because I never had anything extra or given along the way. If I wanted or needed it I had to work hard for it. Best life lesson because I am a survivor with double life time medical.

When there is no plan B (Parents) you do what you have to do.

I tell my family and have for years to please don’t worry about leaving me anything because I have always lived my life as if I was never getting anything because nothing is guaranteed. It’s all a bonus if I do get anything and trust me they will need it more so when they are older than they do now.

Set yourself up and take care of you. I’m not trying to pat myself on my back but it’s important for me to give an example of how if someone is handed so much they will never be survivors in my opinion.

Worth a look: I’m considering selling a rental property that is paid off, only making about ~4%/5%

[Marissa]

I think it depends on why they’re struggling financially as to what you do. You used the word “enabling” which makes me think they are struggling because of poor choices.

As Dave Ramsey would say don’t give a drunk a drink- I have family who received a huge (think 500k) inheritance and blew through it with nothing to show in only 24 months.

The best blessing you can provide is helping them in other ways.

[Tanya]

I personally would keep it, so my kids always have a place to stay.

[Sondra]

Close to your situation. We have 4 kids. We own a home and inherited a home. Two kids have bought homes and I don’t think the other two ever will. Our wills say sell everything except for a few special items to each child and money split evenly.

[Mary]

Have your daughter pay a bit more each month to cover the taxes. And have them help with the yard work and maintenance.

Get all your kids together and talk about the future. Find out what they want. My oldest wants my farm, its value is in the land, the house is in bad shape. My daughter will get cash as that will help her family the most. My youngest got my husbands business when he died last year. They all agree that this works best for them.

Have you seen: 457 vs. rental sale for multigenerational home down payment?

[Brenda]

They should be responsible for landscaping and general upkeep.

I’d have them pay over the payment everyone to put toward the taxes increase the amount they pay to atheist cover taxes and a little extra to cover some major expenses of something tearing up and put into a saving account for exemgency repairs.

[Patricia]

It’s a good idea to sell once you’re both not here. It’ll save alot of heartbreak once you’re gone. They each will want one of the houses and there will be hurts. Make sure you’re both set in selling when the time comes and let them know ahead of time, that there’s no changing of either of your minds. My parents did that and it was split evenly amongst the 4 of us!

No hardships, heartaches, we still get along great.

I think we’d have issues w/ each other if any of us were living in it or wanting to manage it as a rental. It’d be too much, who’d manage the money, someone would feel shortchanged, it wouldn’t be good even though right now (w/ you still here) they think it would work.

[Tammy]

I would keep it. Why do you do yard work. If someone living in it make them responsible for that.

[Katie]

I’d raise the rent on it to what you want to be making and comparable to the area. If the kids can pay it, great. If not, they can look elsewhere (since you have several kids…maybe they can go in together to rent/buy your place or another place). Bottom line is it’s your investment property and needs to be making you money.

Sell it and pocket the equity or rent it to someone who will pay you the money it’s worth right now.

[Mindy]

Talk to a financial counselor and an estate lawyer.

Just my humble opinion so please don’t be offended. I think you are thinking with your heart not your head.

If you talk to the professionals they will provide objective advice.

[Sophie]

Do you need money for retirement? Don’t you want to enjoy it and spend your hard earned money? That’s the point of living your life. You work hard all your life so you can reap the benefits later on. If there is money left once you die then your children can have access to that but if they constantly count on money coming their way you are doing a disservice to them.

I think it’s enabling your kids if you are giving them access to a house « to get their act together ». It will take them a lot longer to do that than if they have to fend for themselves.

Tell your daughter who lives in the house and only pays the mortgage and utilities that you are selling and see her reaction.

Give these a glance: Layoff impacting rental application – upfront rent offer?

[Denisse]

I would make the decision based on what will help you financially to live your retirement years comfortably. I understand that as parents we want to help our children but we also have to teach them to be financially responsible.

Once you are married and have a family you should be financially independent from your parents and it sounds like you’re footing a bill that does not belong to you.

[Annette]

I understand you feel like you are making no profit but are you losing money? Is the house is a good area where your capital gains are rising? What is the house worth?

When I was trying to decide to sell a house or not I did all the math from several directions including if you sell it can you put the money someplace it will make the capital gains percentage.

Real estate is always a good thing to have.

[Author]

Posts