Finance Friday: Sell (Don’t Rent) Your Primary Residence When You Move Out
Finance Friday: Sell (Don’t Rent) Your Primary Residence When You Move Out
Abstract
We can renovate it, live in it, which it has a neighborhood, and I think it's the right place for us to be, and then try to really make profit out of the Airbnb on this house, but it's still really scary to me to go there, but I still think all the planning and all the numbers work. I mean, you have to furnish the whole thing and that's something that I think that a lot of people who are considering short-term rentals don't necessarily think about, and that's going to be, Scott, have you set up a short-term rental yet? Scott: Well, I think we start with, Jill, have you analyzed this property? What is your analysis? We probably have more than, "Hey, I can get a thousand bucks on six big weekends." What is the income you think that the property will generate? What are the expenses? Have you run that analysis? Jill: So my husband did some analysis. So that's why we think it's valuable, but I think a lot of those concerns you have are something to consider. Scott: Once that's done, I think you have, it sounds like, the luxury of going right down the stack of maxing out your 401(k), maxing out your HSA, maybe contributing to other retirement accounts. Just start having the discussion with him, "What are you thinking about? What am I thinking about? Let's get on the same page. Let's figure out how to work backwards from that," and then move forward towards that goal and continue thinking about it, continue fine tuning it and honing it depending on, because sometimes the stock market's going to be down 15% in one quarter. It's just, yeah, I've been working so long, I don't know what it looks like to even think about not working in five years, but- Scott: Well, that's what our job is to do that. They're doing all the right things and I think they're going to build wealth a lot faster than they think over the next three to five years.