Business Columns & Blogs
Q. I am 80 years old, live alone and have two adult children. I own two homes, one here in North Carolina in which I live and another in New York, my former place of residence. At one time, I thought I might move back to N.Y., but N.C. is my home now and I can’t imagine making any kind of move at my age let alone back up north! My home here will be paid in full next June which will eliminate over $1,200 in monthly payments. I have a home equity line on my N.Y. home and the interest only payments are under $400/month. My N.Y. home is rented and I receive around $2,000 a month but after taxes, insurance and other expenses. I don’t have a lot of spendable income. Money is tight; I can’t afford vacations, a new or used car or much of anything else beyond the essentials. After real estate commissions and paying off the home equity line I think I’d clear over $100,000. My adult children think I should keep the N.Y. home as an investment but I think I should sell. They think I should at least wait until my N.C. home is paid for and then see if I really need any more cash flow. If I wait, that will be one more year of living on a shoestring; what do you think is the best solution to my cash flow problem? If I do sell, what should I do with the proceeds?