Property loss from fire, insurance pay out net positive

[Rex Celle]

In a situation where a property is damaged or lost due to a fire, and there is an insurance claim payout that is above and beyond the mortgage principal… Curious to hear, what would be your strategy...

[Rex Celle]

@Jose Linares It is a total loss and the policy limit covers the amount to rebuild. Two options I’m looking at right now:

1. Take the payout, pay off the mortgage, sell to an investor at salvage value, and leverage the rest to buy another property.

2. Take the pay out, pay off the mortgage, pay for the demolition for it to be flatland, donate it and take the benefit for 2019 tax filing and leverage the rest to buy more properties.

3. Take the payout, work with my property manager to rebuild and market it out for rent again.