Strategies for Mom's House

[Matt Cruz]

Hi all, 

I'm looking for some advice on behalf of my Mom as she's in a favorable situation with our current home but is not exactly sure how to get the most value.

The house was bought in 2013 for $258k in Freehold, NJ. There is about $157k left on the mortgage and our realtor gives the house an estimated value of $475k (that's what he says we should list at so using that as a rough estimate). She also has a 3% interest rate on the mortgage which is obviously much better than what she'd get now. 

The current plan is to sell the house and use the equity as a downpayment on a condo. I'm wondering what other strategies come to mind? Given how low her interest rate is, I was trying to see if it makes sense to rent out the house while renting a place to stay. But, I also am aware rent prices are fairly high right now. 

Thanks in advance!

-Matt
 

[Scott Mac]

Quote from @Matt Cruz:

Hi all, 

I'm looking for some advice on behalf of my Mom as she's in a favorable situation with our current home but is not exactly sure how to get the most value.

The house was bought in 2013 for $258k in Freehold, NJ. There is about $157k left on the mortgage and our realtor gives the house an estimated value of $475k (that's what he says we should list at so using that as a rough estimate). She also has a 3% interest rate on the mortgage which is obviously much better than what she'd get now. 

The current plan is to sell the house and use the equity as a downpayment on a condo. I'm wondering what other strategies come to mind? Given how low her interest rate is, I was trying to see if it makes sense to rent out the house while renting a place to stay. But, I also am aware rent prices are fairly high right now. 

Thanks in advance!

-Matt
 

 Mom comes to live with you, in return she helps make dinner, but gets to go out to dinner when you go out at no cost to her.

She pet sits, baby sits and vacuums (good exercise) as needed.

She gets here own room with her own wall mounted TV and stuff from her old house in a storage unit.

She can park in the garage if it makes her feel safer (outside may have slippery ice or a steep driveway).

She rents the house out at whatever the market will bear, after a complete (unit turn type) deep cleaning by paid maids.

Any needed fixes are done and good SCREENED renters are chosen, maybe use a management company.

Think tax problems when you might put yourself on the deed, allocate income between her and you.

Send her on a cruise every 6 months to somewhere fun--Acapulco, Alaska, etc...

If you have kids they will probably love having grandma stay there, and she can bring them souvenirs back from her travels.

She could also join a bowling league for those of her own age and gender, which is also good exercise.

Good Luck!