I just turned 27. I have a wife and 2 kids. I have owned my home for about 3 years and with the housing marking my house is now worth about 50k more than owed. My realtor says I should end up with anywhere between 45-60k in my pocket.

Debts/potential uses:

  • My wife has some speeding fines around 10k from her irresponsible youth to get her license suspension lifted. Since I have her stay at home with the kids( cheaper than daycare) she would not be able to pay them back.
  • I have around 4k in revolving debt, a 18k new vehicle(4% apr). That's about it.
  • No retirement plans,
  • no business ideas aside from the small business low return ideas.

Should I invest this money?

Or should I move into a foreclosed home and have nearly no house payment if any?

I need advice on what the responsible decision would be to do with this equity. I have an opportunity here and I am going to take it to get the money so I can either invest it or move to Arizona and buy a foreclosed home on acreage outright. Any advice would be appreciated.

Also, I make 50k a yr and do not have a college education. Very capable of school but I have too many friends making less than me with degrees and less drive when it comes to their career.

Excuse my grammar in this I wrote it quickly.

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    "Since I have her stay around with the kids". Yikes. I hope she has a say in that. I also hope she has a say in what to do with the money, particularly whether to move to an acreage in Arizona (which is presumably very different from where you are now)... – Grade 'Eh' Bacon Jul 13 '16 at 17:19
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    The main question that is unclear is what you're considering doing. Are you saying you plan to sell the house? – BrenBarn Jul 13 '16 at 18:08
  • It's really a shame you wasted so much money on a car. You could have bought a perfectly fine used car for $750 which would be identical. Hopefully you never again waste money on a car as you go through life. it's a straight loss - you'll never get one dollar back from it. You may as well have literally got $17,000 in a pile and burned it. – Fattie Jul 14 '16 at 13:52
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    OP the first thing you really have to do is HIRE AN ATTORNEY which will cost you a bit of money, get them to address the strange "10k" problem of the fines. You want to resolve that problem as soon as possible, and an attorney will achieve that for the least money. Good luck! – Fattie Jul 14 '16 at 13:53

How will 45K-60K "end up in your pocket"? Are you selling your home? Where are you going to live? You talk about moving to Arizona, what is so magical about that place?

Congratulations on making a wise purchase. Some people with new found money use it to correct past mistakes. However, if they do not change their behavior they end up in the same situation just less them money they once had.

While 50K income is respectable at your age, it is below the national average for households. One factor in having a college education is those with them tend to experience shorter and fewer periods of unemployment especially for males. Nothing will ever replace hustle, however. I'd ask you to have a plan to raise your income. Can you double it in 5 years?

You need to get rid of the revolving debt. Do that out of current income. No need to touch the house proceeds for something so small. Shoot for 9 months.

Then you need to get rid of the speeding fines and the vehicle loan. That is a lot of vehicle for your income. Again, I would do that out of current income or by selling the vehicle and moving to something more inline with your income.

As far as to moving or flipping foreclosures that is more of a question that has to do with your hopes and dreams. Do you want to move your children every 3 years? What if you move to Arizona and it turns out to be quite horrible? You and your wife need to sit down and discuss what is best for your family.

  • Probably the best way to increase family income would be to plan for the wife to take on some type of work down the road, but that is not always possible. – Grade 'Eh' Bacon Jul 13 '16 at 17:20
  • "I have an opportunity here and I am going to take it to get the money so I can either invest it or move to Arizona and buy a foreclosed home on acreage outright. " It seems he will use it to buy a new home. And that would be the end of it. New house, but no loan. Not bad. – JTP - Apologise to Monica Jul 13 '16 at 18:23

What to do with your equity? Leave it alone...

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