Cancer! Long term, short term, or sell it?

[Glen Holmen]

Could you help with a really tough situation? My best buddy has an amazing forest lodge in the woods on 6 acres just north of Seattle. 4/3 with 3000 sqft. He also has stage 4 cancer. Yeah, really. He and his wife have prepped it as an amazing wedding venue for future income, either with or without him. They are both 65 and vigorous. However, as his stamina wanes, weddings are becoming too work intensive. She’s inclined to sell and go traveling in his remaining years. He thinks he’ll live for many years, wants to keep the family home, provide for his wife long term, maybe do VRBO. But that still sounds like a lot of work. Long term rental is possible but it’s a one of a kind property and would need to rent for $5-6k per month (at least) to cover expenses. Does such a high-end rental market exist?

Maybe someone could make a fortune if they leased it from my friends and then ran it (a kind of arbitrage) as a short term rental/wedding venue?

Or maybe they refi and pull cash out for travel, and then what?

I’m sure there are other ideas but we’re looking for data-driven choices for this troubling situation.

Please help? What would you do?

Details-

Current Market Analysis- $1.85M sale price

Current Mortgage, 700k at 3.5% w 28yrs left

Current payments PITI $2400 mo

Long term rental projection- $5-7k per month?

Short term rental- $650-$1000 per night?

Wedding rental- around 10k per event includes lodging. Could escalate?

Can you help us help this couple with your creative advice? Thx a million!

[Jay Hinrichs]

sell it..  if he lived there 2 years as primary residence him and wife can take 500k TAX FREE  and maybe even if they lived there less time given the health situation.  take the money travel as they see fit.