Confused about what to do with our property

[Mike Lynch]

Hi,

My wife and I are now in our early 50's. We own 2 business condos which are totally paid off, one of which she operates her signs and graphics company, and the other is rented to a lighting company. We own the home that we live in now which is totally paid off. Last year we moved into it from our brick ranch style starter home built in 1978 which is a 1360 sq. ft., 3 bed 2 bath, that we ended up living if for 20 years.

I have been going to it for the last year doing repairs. It needed a new roof, new appliances, some new flooring, new water piping and fixtures, interior painting, etc. All is finished now. We owe $40,000 on it.

The home has some large oak trees in the yard that hangs over the home. Friends and relatives tell us to get rid of them before the cause damage to the home. It would cost about $15,000 to cut them down and the home also needs to be tied to the county sewer system. The septic system still works, but the drain fields are getting to the point that they can't handle heavy loads of people anymore. I am guessing about $20,000 to make the home a good rental home. It has a .5 acre yard and a .5 acre lot beside of it where another home can be placed.

After talking to Realtors and an Appraiser, they say that the home prices here near Holden Beach, NC are between $175 and $185 per sq. ft. + the .5 acre lot would put it around $300,000 plus. If we sell it now, we do not have to pay capital gains tax.

I was wondering if it would make sense to sell it, pay off the $40,000 loan, then use 20% down to buy another rental home and let the tenants pay the mortgage. If that is working okay, put down another 20% and do the process again? We are pretty confused as of what to do. The home requires a log of maintenance and yard work due to the trees and leaves. ....... What would you do if you were in this situation? ..... We are trying to do our best to get ready for retirement.