Brought to you by the EveryDollar app. Start budgeting for free today. Hi. Thank you for taking my call.
Sure. What's up? I'm in a mess, so. Well, I know this is your money.
Okay. My mortgage payment is 4,500amonth, and now we just bought this house in June and the income changed, and so I own my own business. So it's definitely. It fluctuates, but I make between 4 to 6,000amonth, and then my husband has an income of 4,000amonth currently.
Okay. So that is definitely. So, on a really good month, your mortgage is still about 50%, if not more, of your income. Yeah.
If not more. Yeah. Okay. And you said the income changed.
What was it before? Was it ever a good idea? Well, probably. No.
No, this is probably not. We own another house. I don't know. Let me tell me the tea.
Spill it. So we moved and we had another home and we were trying to sell it, and apparently we only went to escrow and inspection and stuff that the foundation needs to be replaced, and that was like $140,000. So, long story short, we still have that home. Did you fix the foundation?
No, we are working on that because it's $140,000. This has just been. Anyway, so tell me before you move on. So that house, what do you owe on it and what's it worth barring the fixed foundation?
So we owe about 6, 650,000 on it, and it was being listed for 1.1 million. Um, but with the foundation issue, all the buyers were scared to even take it. So with the rent, we make $1,400 profit a month. Okay.
Okay. Yeah. Yes and no. You and I's definition of profit is different because you got a lot of money sunk into it.
Okay. 100%. Got it. So you got this one house.
If you fix the foundation, it's worth 1.1. Yeah. You have it fix it yet? Are you in the process of or.
Tell me more about that. So we applied for permits and we're waiting on that. I can give it to five months. So we've just been working through that last couple months pay for it.
Exactly. I would have to go out of heloc and the whole thing's just a nightmare. So. Okay, have you done the research on if you were to sell it as is?
What? I mean, I know you said certain realtors wouldn't touch it, but I'm sure certain realtors would. What would that look like as far as value? Well, we tried just to give it away.
For even 950 and all of the. That doesn't feel like a giveaway. Let me, let me. That's not a giveaway.
That's you just less the value of getting it fixed. Well, we do owe about $150,000 in solar. Okay. But that's not on the next buyer.
You chose that, right? Yeah, I just mean in order not to take. For you to not take the hit. Yeah.
So I think you're going to. You might, you might end up like eating. Eating a big loss on this house. You might.
I mean if you can carry it and get this foundation fixing cash, then I would not take out more debt to fix this house. So there's that. Can I ask really quick, how far away are these two houses? The one you're living now versus the one.
How far a state away? Oh boy. Six hours. Oh yeah.
And you said there's also 150 in solar. That's a separate loan. Yeah. Okay.
In their state away. And you moved, you moved to where you are now because of your husband's job or your business? Well, originally it was my husband's job. He's been in the military forever, so we moved here and anyway, we're staying here.
Yeah. So Shannon, about this house, but. Yeah, tell me, tell me about your current house because this may be your way out of all of this. Your current house.
What's. What do you owe on it and what's it worth? So we bought it for 460. 460,000.
And when I just called a realtor, I got a realtor and she told me, because we bought it just in June, that we probably would. Clothing cost and everything. Probably take about a thirty thousand dollar loss. Yeah.
Okay. Yeah, you're probably right. I mean she's like, I don't know. Yeah.
So. So that's not an option like selling that for profits. On option for you right now. Which I wonder if it would be.
Yeah. If I were you. What is rent? What if you guys were renting in your area right now?
What would that set you back? Yeah. So rent here is. Well, so we could, we could get a rent the same home for maybe 2000 or 2200amonth at the most.
Yeah. The only thing is I don't want you adding more loss to this in the form of $30,000 in fees. So I, I'd hang out for a little while in this home. If you can get right side up on it, you can make it.
You can come up with that money, then get out, then rent, take care of this. Other places stayed away. Get out of that. Feels like that's the progression.
That's the only way. The good news is like you are getting some money from rent on this just to pay the mortgage. But I. It's a hot potato.
I'm gonna try to get out of this as quickly as I can before it burns your hands. Oh, this is a tough one. Create your free every dollar budget today. The simplest way to budget for your life.