How to get back on your feet?

[Rudy Poe]

Hello BiggerPockets fam!

I’ve been following the podcast for a while now and decided to turn my life around because well honestly I’ve realized if I keep living the way I’m living, the life I want will never be possible. I’m just getting back on my feet after not working for the last year to deal with mental health issues. I’ve sorted out my life and purpose and feel ready to start piecing it back together. 

I wanted to ask you all about how you would start out given this situation.

Here is my financial picture:

40k in consumer debt

75k mortgage

60k in student loans

My assets:

155k is the value of my home

My current plan is to do the following:

Sell the house

Given I sell the house for 150k I estimate after closing costs, realtor fees, paying off my consumer debt and existing mortgage I would have 25k left for investing. This is the fresh start plan.

My preferred option

would be to keep the property as a rental because it cash flows after expenses at around $300 per month. Plus the property is zoned so that I could built another house onsite for more future income. Then get the best job I can and try to pay off the debt over time. Con: I really would like to be free of the debt immediately and start fresh with a different future investment.

I’ve been really stuck figuring out which option to go with and just thought I’d reach out for help and another opinion. Or perhaps there is a better alternative.

Thanks for this space to brainstorm!