I want to minimize the amount of debt we have BUT the rental needs some necessary improvements.
As I said in a previous post it has Polybutylene pipes, it freezes during the winter & they can burst at any point because the pipes are now illegal.
Cost to replumb - $6634
It needs a new HVAC system that is getting installed on Thursday
A rotted fascia board needs replaced (cost unknown)
And I'd like to get termite protection for the house ($1200)
But currently, after buying the HVAC system we are in $99K in non-mortgage debt (Car, HELOC, CC, and Student loans)
I DO NOT want to go over $100K, but my thoughts are... we've already had one pipe burst in the home... what if another bursts or has a slow leak? It could cost even thousands more!
If we do EVERYTHING, then we'll have $110K total non-mortgage debt. $67K of which is between the car & student loans. The rest is the HELOC and credit cards.
I don't know. I feel like I'm being risky by NOT doing the plumbing because a pipe could very well burst, but I also don't like the idea of being so heavily in debt. In May '08 we were $103K in debt, last month we were $92K...
As I said, I don't know. The right thing to do is to get out of debt AND keep the house in good working order.
DH also made the decision to stay here. Financially its what is best and its also better for both of our careers. I'm not too let down, Hawaii will happen - I'm just taking this as a sign that we have more stuff to finish here before we move on.
What would YOU do?
March 22nd, 2009 at 02:14 am
March 22nd, 2009 at 05:12 am 1237698738
March 22nd, 2009 at 11:18 am 1237720684
Your Car - I don't know how much it is worth. Just say its worth 30,000. Sell it and buy a perfectly good runaround for 15,000. There's 15,000 right away. I know you have small kids and I don't know much about the used car mardet in the US. However, I'm sure your DH could help you find a good, safe and reliable car for that kinda money.
Just a suggestion....
March 22nd, 2009 at 02:05 pm 1237730727
Looking for something to sell to offset this is a good idea too.
March 22nd, 2009 at 03:02 pm 1237734176
March 22nd, 2009 at 03:19 pm 1237735178
$92k? $110k? It's all the same to me - way too much.
March 23rd, 2009 at 12:27 am 1237768040
If the illegal pipes burst having the insurance fix the house might be cheaper (just deductable).
March 23rd, 2009 at 12:50 am 1237769431