The Ramsey Show - App - Should We Sell Property We Bought With a HELOC? (Hour 3)

Episode Date: May 15, 2023

Dave Ramsey & Jade Warshaw answer your questions and discuss: Updating your home and investing, "Should we sell property we bought with a HELOC?" "When should I tell my boss I'm moving? "Wait until I retire to pay off my house?" Does an employer match count for my 15%? "I'm about to inherit $1 million..." Have a question for the show? Call 888-825-5225 Weekdays from 2-5pm ET Join a Personality-led FPU class. Click here! Enter The Ramsey Cash Giveaway for a chance at $3,000! https://bit.ly/TRSgvwy Shop our bestsellers during the $10 Sale! https://bit.ly/TRS10Sale Want a plan for your money? Find out where to start: https://bit.ly/3cEP4n6 Listen to all The Ramsey Network podcasts: https://bit.ly/3GxiXm6 Interested in advertising on The Ramsey Show? https://ter.li/s64ye3 Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy

Live from the headquarters of Ramsey Solutions, broadcasting from the pods, moving, and storage studios, it's the Ramsey Show, where we help people build wealth, do work that they love, and create actual amazing relationships. Jade Warshaw, Ramsey personality personality is my co-host today the phone number is 888-825-5225 jenny is in orange county starting off this hour hi jenny welcome to the ramsey show hi mr ramsey thank you so much for taking our call i just wanted to say first of all thank you so much for your show and for the advice that you give. Thanks to you, you've helped us to be out of debt.

Our home is paid off. Wow. Yes. Good for you. Way to go. So thank you. You're 100% debt free. Baby step seven.

Yes, sir. Way to go. What's this house in Orange County, California worth? I think if you were to go on websites, it would probably list at about between 1.4 or 1.5. You're amazing. I feel incredibly grateful. Way to go. I'm proud of you. Thank you. Our question is,

we're both in our mid-50s. Like I said, our home is paid off. We have no debt. We're fairly new Ramsey followers, and we feel like even though we started a little bit late towards savings for retirement. We're maxing out in terms of our 401k backdoor loss beyond 15%. But we have about $25,000 discretionary beyond the savings, beyond our emergency savings. And we feel like we've put off for so long, some non-urgent house repairs, fencing, maybe a possible car purchase, replacing a nearly 30-year-old refrigerator. Talk to us about guilt-free spending now. when you think about retiring in Orange County, it seems like the cost of living is just so high that should we just be constantly saving towards it like the way we've been trying to be out of debt? Or now can we take a deep breath and start putting some money into non-saving? I think that you can take a deep breath. I think that you've done so, so, so very well

and that you need to internalize that. You've done well. You've paid off your debt. You've paid off your home. And you're in your mid-50s and you're doing just exactly what you're supposed to be doing, which is now you are able to chunk more money into retirement and you're doing that.

Are you maxing out those accounts? We are. We've already maxed out for the Roth, for our IRAs. We do as much as we can for our 401k and we're even doing backdoor Roth because we feel we have extra to throw at it. How much do you have in retirement savings right now? We were starting late right now in cash that we have invested. We have about $150,000, but my husband works for the state and could count on about $630,000 for a lump sum payout in lieu of a pension

if we were to choose that option. So total, we feel we could have about $750,000. And your household income is what? About short of $100,000, closer to $95,000. Okay. So let's call it $100,000 a year, and you have a $2.5 million net worth, and you're in your 50s. That's called buy a new refrigerator. Today. Go buy a refrigerator today.

And buy whatever one you want. Anything you want. I guess we're thinking, oh my gosh, we'd like to have close to about a million dollars. You're going to have. You're going to have. You've got the 650, Yeah. Yes, 100%. How old are you, 55? We're in our mid-50s, yes.

So the house is going to go up in value. The current amounts you're putting in are going to go up in value. The pension is going to go up in value less, but it will still go up in value before he catches it out. But all of that's going to continue to increase. And so, you know, when you're 65, you're probably looking at about a $10 million net worth at the current track you're on.

Okay. It doesn't feel like it. I know. This wasn't a feeling. This was mathematics. Have you ever sat down and just played with an investment calculator just to see how the numbers go? No, we don't. Actually, and I'll be honest with you, sat down and just played with a investment calculator just to see how the numbers go we

don't actually and i'll be honest with you we are very very late to investing that's our well that's why i want you to do this i want you when you get off the phone i want you to just google go on ramsey solutions i don't want you to go on a spending splurge you didn't get elected to congress okay you're not going to go crazy but buying a refrigerator is not going to mess you up when you have a $2.5 million net worth, okay? Buying a better car is not going to mess you up. Putting some money into this and updating the house a little bit is not going to mess you up.

All of that together is less than $100,000, isn't it? Refrigerator plus car plus home repair is than a hundred thousand yes or no did i lose her i think you might have lost her i think i lost her well i'll answer your question the answer is yes dave and yes and it's gonna break it's not gonna break her world yeah she's gonna be just fine play with an investment calculator people if you've never done that it is so good for your mind because we're sitting here telling you the numbers. But to see for yourself what happens when you put certain amounts away for certain periods of time, it's just good for your brain to see that. Yeah.

Yeah. So, yeah. Again, the normal process is that you move from unaware of how stupid you've been, me, I remember that process myself, to going, oh, God, I'm the dumbest human on the planet. I've messed this up. I'll never recover. I've got to go crazy.

And you go crazy for a period of years, gazelle intense, beans and rice, rice and beans. You're totally game on. We're not going on vacation we're not eating out we're getting this mess cleaned up and because your body is running at that rate your metabolism is running at that rate then it's hard to slow down when you come through that and and because when you come through being debt- free other than the house and then you come through getting the house paid off you look up and you go wow wow and you're breathing a little differently

and then it takes a little while for your emotions to catch up with the actual reality of your new math where you've ended up yes because that old person it's like that old person still lives inside of you and you have to persuade them that things are okay now yeah yeah and you know and it's weird because you had to persuade the stupid person yes earlier that they're not okay yes you know right this sucks and you're like i'm okay with sucks no you're not be stupid don't be stupid get with it go go go go go go go go go go go clean the mess up but then when you get the other side of it you got to look up and go okay what's the math telling me that's right i can afford to go on vacation what's the math telling me i can afford to upgrade the car. What's the math telling me I'm getting rid of a 30-year-old refrigerator today?

Please. Please do it. Please. God, that's awful. Terrible. This is The Ramsey Show. Hey, you guys. Health insurance costs are only moving one way, and that way isn't down.

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spiritual needs. Members become part of a family who will pray with them and for them when they experience a medical event. So listen, y'all, there's no better way to take care of health care costs. CHM programs start as low as $98 a month. So learn more today and join at chministries.org slash budgets. That's chministries.org slash budgets. Jade Walshall, Ramsey Personality is my co-host today. Debbie is with us in Charlotte, North Carolina. Hi, Debbie. Welcome to The Ramsey Show. Hi. Thank you for taking my call.

Sure. What's up? My husband and I have two grown children. Our daughter is married and rents a home independently. Our son is also grown, but he lives with us, but he does pay rent. They both would love to be able to find homes of their own. They've been unable to do that because of the market and just their personal finances. They would love to live close to us

as we would love for them to live close to us as well. So in November, some land came available, some acreage came available very close to us. And my husband and I bought it. Our home was paid for but we used an old HELOC that we had there to purchase the land because we didn't have enough cash to buy it outright. So since then the rates on the HELOC have more than doubled which means our payment has more than doubled. The kids would still we all still feel the same we'd all still love for everybody to be able to build or do something out there on that land but financially they're just not ready so my question is do we refinance this because the land is paid for but now we're back in the mortgage situation.

So do we refinance it? Do we roll it into a fixed-rate mortgage and just work at paying it off, or do we sell it? Wow. What is the land worth? Probably about $200,000. how big is your helot uh 250 why did you borrow 50 more than the land was worth to buy the land when the house was paid for that

was just that was a like a business expense and the land may be worth more than that. I'm sorry, a business expense? What do you mean? We have a handyman service, and the truck that we used died, and so we did use it for that. Okay. So you bought a $50,000 truck that you couldn't afford. You bought a $50,000 truck that you couldn't afford, You bought a $50,000 truck that you couldn't afford, and you bought a $200,000 piece of ground you couldn't afford.

Could we not afford it since our home was paid for? You couldn't afford it. You didn't have the money to pay for it. By definition, that means you couldn't afford it if you didn't have the money to pay for it. Your business is not making enough money to justify a $50,000 truck. You know how I know that? Because you didn't have $50,000.

Yes, we did. Why did you borrow money then? Taxes. Taxes? What's taxes mean? Well, I mean, if we have no tax deductions, then we're paying more and more and more and more in taxes. Do you not know how a tax deduction works?

If you write off $10,000, it saves you $2,500. You have to give the bank $10,000 to keep from sending the government $2,500. You don't go in debt to create a tax deduction. That's trading a dollar for a quarter. Okay. Okay. Yeah, you need to sell the land. So we've talked to the kids about this land.

They don't get a vote. They're broke. Okay. So we just need to say, sorry, we made a mistake. We're going to sell it. That's right. Because they can't afford to buy a house. This whole thing that you guys have concocted, it's not working.'s not real yeah it's not real you've gone into debt for this you've got bad practices and then it's all

on this dream that the kids are gonna one day build houses on this land but you've said they're not ready to no one is ready and financially able to do any of the things that you're speaking about you're not and they're not and so this is a this is a wish. It's not a realistic prognosis. If you were sitting on three or four million dollars and you wanted to play this out, then I would just question whether you're being an enabler for kids that aren't handling money well. But beyond that, we don't even need to get to that because none of the three of you have the money to do this deal. And I'll tell you what the next step was, Dave. The next step was they would have financed those down payments for those kids if they could.

Yeah, that's where this is heading. That's where it's headed. It's heading worse, yeah. Yeah, got to let it go. I'm sorry. I would not have a mortgage on my home for a piece of land ever, but I for sure wouldn't in this situation because it's not going this family compound dream is probably never going to happen and if it does it's 10 or 15 years from now

and um it's just not it's not a process you the kids are going to be much better off to to build themselves a self-sustaining life without mommy and daddy doing it and just live nearby that's right all of my kids live within uh i don't know 30 or 40 minutes of me um but they don't live in my backyard none of them would want to probably but um well there's a certain amount of pressure that she's that they're placing on the kids when you say hey i bought this tract of land then there's also this okay i guess family compound we gotta do you know i've got i've worked through several family compound issues over the years and i don't want one because here's what happens divorce yeah and now the ex-daughter-in-law is your next door neighbor because your son lost the divorce oh i didn't even think about that that's or that's not

good mom you know uh we got an offer to make a half a million dollars a year more in seattle so we are leaving charlotte that's what i'm saying and uh guess what you sell that house to who a stranger yeah in the family compound and how much some of those strangers are strange strange strangers and you get a strange stranger as your next door neighbor right and then now now you know thanksgiving really tastes different now i'm just telling you that these things don't end well i there some people pull it off but i'm i've just seen all the messes and that's if this worked and if you guys weren't broke debbie but y'all are broke it doesn't None of you have got the money to pull this off.

You couldn't even buy a $50,000. Well, you could buy a $50,000 truck, but you didn't. So, by the way, take the $50,000 from your business that you had to buy the truck with and pay down the home equity loan so that when the land sells, it pays off the rest of it and put the land on the market. I don't think mama's going to do that. I don't think she's going to do it either, but it's the right thing to do. It is.

You shouldn't have called here if you didn't want the truth because we love you so much we do we want the best for you we're gonna tell you the truth yeah we're get rid of that devastating truth tellers tim's in boise hi tim how are you hi dave hi j. Thanks for having me on. Sure. What's up? My question is, my wife and I signed three-year contracts. We are both veterinarians. We work for the same business, same privately owned business, and our contract ends in about 12, 13 months. It's been a pretty toxic work environment. It's been a really rough two years for us, so we're planning to not resign.

And we are 50% of the vet force at our clinic. Do you know where you're going to land? At this point, we have a couple ideas a little closer to family. Okay. Oh, so you're going to make a move from a different city? Yes. It will be a move across the state. Okay.

And you think you're gonna you're gonna open a practice or buy into a practice or what it's probably just get more associate jobs my wife wants to go to part-time so she can spend more time with our daughter and i will probably get a full-time position as an associate okay all right cool all right So what's your question? I have question I have is how do we go about when and how to tell our bosses we're not planning to resign? You know, they have quite a bit of power complex where we're concerned that they're going to make our lives pretty miserable if we tell them too soon. But we don't we want to be ethical about it you know we don't have to necessarily i don't make my decisions based on them i make my decisions based on me okay and what i do is i treat business ethics is answered by one thing almost always do unto others as you'd have them do unto you treat other people like you'd want to be treated if the roles were reversed and you had a team member that thought you were a jerk what would would you want that team member to tell you? When would you want that team member to tell you?

The answer is today. I would sit down with them before the week was over and say this simple. We're planning at the end of our contract to move back and be near family. And so I wanted to give you as much notice as I could so that we could be as helpful as we can be in the transition. Okay. That's simple. This is you being classy.

They choose not to be classy, then you may have to make a decision to leave early if they're going to be out of control because I'm not going to be abused in a work situation. You take that contract and use it for toilet paper. I'm not going to stick around. But hopefully you can create a classy situation. But this is about you having class, not about them.

Yeah, you can't control what they're going to do. And they're probably going to act up, let's be honest. Yeah, kind of know they're going to. That's why we're leaving. jade walsh all ramsey personality is my co-host today thank you for joining us america well the stock market's been rough lately it's been up it's been down and it's basically about where it was a year ago but it was a wild ride to get to even the facts are if you invest 200 a month from age 25 to age 65 you'll have between a million and two million dollars no that's not too good to be true that's based on the long-term average return of the s&p 500 now if you're not 25

well that's okay you can still get started A huge predictor of investing success is that you actually invest. So get a pro in your corner to help you get started. Go to ramseysolutions.com slash smartvestor. Our smartvestor pros are people that have the heart of a teacher, do things the way that we teach around here. They don't work for us but we recommend them they'll drop down a a list of the smart vestor pros in your area you can meet with all the different ones and decide which one you want which one you uh match up with the best you pick

ramsey solutions.com smart vestor they'll guide you through the ups and the downs of the market. Louise is in New York City. Hi, Louise. Welcome to the Ramsey Show. Hello, Dave. Thank you very much for taking my call. Boy, I sure need your advice. We'll try. How can we help? Okay. Well, let's just say in the past, I'm 68 years old. And right now in the past, my investments, anything I ever did was, let's just say it would make you cringe as far as money goes. However, at this age in my life, I'm about three years from retirement. I mean, I can retire now. I'm working. I have social security and a small pension. I'm taking all at once.

The question I have is this. I have a small mortgage on my house and a car that I'm leasing. Those are really the only debts that I have right now. And in my bank account, let's just say 125. I want to pay off the house and then start putting that money into like the 401k for these next three years but people are like every time when they see money around here it's like no no no i can invest in this i can invest in that so i'm not too sure what i should do should i just wait till i retire then pay off my house why do you want to wait till retirement to be free um the question is and here's the other thing that maybe i'm just old school don't know really honestly ignorance i worry about the income that i am having coming in right now working full-time

collecting social security and or small pension all at once putting money in the bank then i won't have anything to claim just me on your taxes yes on that on anything i mean does that matter so then i would have to really make sure so that i am not paying extra i would have to really you're not claiming anything now you're not itemizing you're taking standard deduction now aren't you i believe so yeah. Yeah, I think you are. You have a small mortgage and a car lease that's not deductible. The mortgage interest is. What's the balance on your mortgage?

Right now it's $73,000. And what's your interest rate? 4.2. Okay. So 4 times 7, so $2,800 is your annual interest. You're not claiming that. That's not enough to be. Your standard deduction is probably $15,000 or $18,000.

You're taking standard deduction. So you get no tax benefit whatsoever from this house mortgage. Okay. And you certainly don't from the, and car leases aren't deductible right that i that i know so by paying this off you just don't give the bank three thousand dollars a year in interest which would be kind of nice oh definitely definitely how much is in your saving how much is in your account how much money you got you said you had a hundred how much right now i have a100 and $125.

Pay off your mortgage and your car today. All right. All right. How's that payment? Wait a minute. Breathe that in. What's it feel like to have no payments? Oh, it sounds good.

Yeah. Now what are we going to do? We're rich now because you got all your income to start investing. Okay. That's the thing, though, with investment, because everybody I meet wants to take the money and put it here, put it there, put it, lock it up for three years, lock it up for three years. Why are you wanting to meet with people like that?

I don't know, because that's who I seem to run into when I go to my bank. Well, just keep running. You know, every time they see my money, they want it. Yeah, just bounce on that. You need to get online and get go to ramsey solutions and find one of our smart vestor pros so that once you've gotten all of this paid off and you're working full-time you're going to invest 15 or more because now you got your money freed up

and you can start really packing away on your retirement and as you know what are you working two more years at least two more years i'm going to be going to bible school so then you know parish bible so i just want to be able to when i do that well i'm going to do a part-time and then eventually my second year i'll be full-time get a smart investor pro in your corner and don't do what they say learn from them and do what you say nobody gets to tell you what to do with your money not even me and i'm good at it but not even me you get to decide you get to decide i'm teaching today and i'm giving you an opinion of what i would do if i woke up in your shoes i'd be debt free by the end of the day i pay off that car call the lease company find out what it takes to pay it off and be done with it call the mortgage company

find out what it takes to pay it off and be done with it. Call the mortgage company, find out what it takes to pay it off and be done with it. And then I would take the fact that I have no car payment and no house payment, and I would load up a bunch of mutual funds and build me up some money. So when I go to Bible school, I got a little pad. And never lease a car again. Ever. Ever. You don't need to borrow money ever again.

That's right. You're now rich people. Kay is with us. Kay's in St. Louis. Hi, Kay. How are you i am certainly blessed that's the reason for my call oh cool what's up um well my family believes in generational wealth and based on their amazing decisions i have been blessed to get incoming over a million dollars. Wow.

Who? Yes. I knew these people existed, but I've never met one. Way to go. That's awesome. Who was it, mom and dad or grandparents? Grandma was 94, and she passed away peacefully and was ready to go to heaven. Wow.

And it turns out she had been saving and properties were sold and wow that's i can't even hardly imagine how can we how can we help you so the only that i have is my mortgage that's automatically going to go away good um what's it how much is it i want to do uh like a hundred thousand dollars good okay so now we got 900 okay well it's going to be more than that. That's at least what it is as of now, but there's other things coming in. So in excess of a million. So I don't, I don't want to do anything big with it. I can't obviously put it all in one account. It's over 250. Good. So I guess my question is, is what do I do with this for a year until I can actually absorb this and sit down and

take the time like um high yield savings account yeah i'd pop it in some high i'd pop it in some high yields in some different banks okay so you're not over the 250 are you married yes okay well you can put oh you can put 500 in one bank right if you got both names on it so yeah and the um yeah if you want to do that and just let it sit there for six months and then study and read and listen and learn and think yeah and study and read and listen and learn and think and get some people in your corner that have the heart of a teacher again like we were just telling the last caller the smart investor pros yeah i'm i'm just i'm like you i'm blown away by this. I think it's really exciting. And I agree with Dave. You don't need to make any quick movements. You've got time to think about this.

And I like what he said about listening and learning, because here's the thing, at some point you are going to make a move with this money and you are going to get with an investment pro and you want to be able to understand what they're saying. You want to be able to invert your say on it and say, this is what I'd like to do and have those conversations and know exactly what's going on. And until you know exactly what's going on, don't do anything. Yep. Yeah. Just take your time. And so I end up with my investments, Kay, in real estate that I pay cash for and in mutual funds that I understand. And both of those things, you probably got a learning curve on.

And then you can decide if that's right for you. But that's all I do. Mine's very, very simple. And I ended up with a lot in both of those categories. This is The Ramsey Show. Our scripture of the day, Proverbs 12, 11. Whoever works his land will have plenty of bread, but he who follows worthless pursuits lacks sense. Benjamin Franklin said, He that waits upon a fortune is never sure of dinner.

That's good. I love it. Whoever works his land will have plenty of bread, but he who follows worthless pursuits lacks sense. You know, it's one of the things that's distressing. We had this labor crisis event the other night with Mike Rowe, and he and I were talking about work ethic in America today. And the Tic Tac people have made quiet quitting and mediocre Monday and whatever else. This chase to the bottom, this race to the bottom with no ambition and no attempt to be excellent at your work. Do as little as possible.

Do as little as possible. And let me just help you with that. Jesus did not write that. That was Karl Marx. This was from the scriptures. He, whoever works his land, will have plenty of bread. But he who follows worthless pursuits lacks sense. Jackie is with us in Los Angeles.

Hi, Jackie. Welcome to the Ramsey Show. Hi, thank you. How are you two doing? Better than we deserve. What's up? I had a quick question. I'm in baby step three, and I'm a bit confused. So I know it's to invest 15% for retirement. That's four. And I'm a teacher, and they automatically take away 11% from our check for retirement. So I'm kind of confused on what, is that part of the 15

or is that separate? So technically if you're, the money that they're taking out, that's your money from your check, right? They're not matching it in any way. They match 16% of that. They match 16% of what you're putting in? Of the 11% they take. Uh-huh. 16% of your 11%. Right. Okay, I see. 2%.

So whatever they're matching, that's just icing on the cake, right? So you're still going to contribute 15% of your actual personal money, and then that 2% is going to take it up to 17%, and that's just fine. Think of it as a cherry on top. Do you get to control what that goes into?

I don't. Okay. The fact that you can't control it, I would want to put more than the total of 15%. I wouldn't count your 11 as the total. I'd maybe count it like 9. And I'd want to put another 6 or 7 and something else where you can control the investment because if you can't control the investment you can't you can't control the outcome that's true okay okay and then i'm just quick question um so i'm trying to save obviously it's really hard over here but i'm still trying to save for a down payment um

would i still can i put like like six percent still and then still save on the side or should i pause saving the six percent yeah pause saving pause saving the six percent so in order you would do baby step three be first which is saving for your down payment that's what i would do and then go on to baby step four where you're able to max out that contribution okay okay perfect i appreciate you guys thank you so much for taking my call. You're welcome. Thanks for calling in. Sometimes people do both at once and that's okay too. I feel like if you're going, this is the way my brain thinks of it. If I'm going in order and I haven't bought yet, I'd probably, I probably would not start investing, but sometimes people think it's going to take a while and they're really upset about not getting

their employer match or other things and they want to get started. It's okay if you do some investing or if you even do the whole 15 and you just save up your down payment in addition to that. It's all about how quickly you want to get your house. Exactly. Exactly. So any of those qualify under what we call Baby Step 3B, but I'm with you. My personal tendency is I'm just going to be, I'm getting her done.

Yeah. Yeah. I'm glad that you clarified that because there have been some folks who have said, well, 3b but i'm with you my personal tendency is i'm just going to be i'm getting her done yeah yeah i'm glad that you clarified that because there there have been some folks who have said well you know you have to do this first and it's not that's not necessarily true it's really about what you're valuing most at that time yeah and how it's the speed you're we're both valuing the investing it's just the speed of which you're going to get to either one exactly exactly and some people are like i just just got to get a house. So put it on pause.

Greg is in Idaho Falls, Idaho. Hi, Greg. How are you? I'm good. How are you guys? Better than we deserve. What's up? Good.

Great. So right now we are in baby step two. We have about $25,000 in debt, about $20,000 student loan. The other five is like a family loan. We're expecting a newborn baby, so we paused that, and we're just saving for the baby that's going to be due here in November. Cool. Congrats. So my question is, right now we have a rental, a home. It's got a mortgage on it, and we're trying to decide if we should keep it and still rent it out as an Airbnb, or if we should sell it and use the equity that we have

in it to pay off debt, do the emergency fund. And then if it's okay to do home renovations on our new home, like finish our basement and do a fenced-in yard. And then if there's still money after that, I was wondering what your thoughts are on a mortgage recast to do a lump sum payment towards the new house to get the monthly payment down a little bit because it seems like sometimes our monthly mortgage payment is like around 27%, and I know you suggest no more than 25%

of your take-home pay. I was just hoping to see what you guys' thoughts on all that. If you sell the rental, how much is it going to bring? So I talked to a couple of realtors to get some. They were thinking like a rough number, $370,000. And the balance I owe on it is about 175,000. How much do you owe on your current mortgage?

So our primary mortgage, that one we owe 292,000. You know, I'm not opposed to selling this rental if you're not into, you know, renting it anymore, if it's causing you more stress than it is i mean you do you do have some debt to clean up and you've got a baby on the way if that's something that you feel like simplifies your life and it goes along with your life plan i feel like that's a great idea um i think you want to sell it a little bit yeah because i think a brand new baby and an airbnb at the same time is enough to make me go crazy that feels crazy those two things at once and you you know your wife is

saying i need to some stuff fixed up around the house here and you don't have the money to do that and you're thinking about her and about the baby instead of the airbnb and i think that's a good dad how close is it to you? Yeah. Is it far? No, it's like five miles down the road from us. So yeah, it's right here. I love the idea of you selling it and clearing out this debt and possibly having some left to, you said you could fully fund your emergency fund,

pay off the debt, and maybe still have some to put on your house. Yeah, or dump some in a college fund, all those kinds of things. You're not going to have as much as you think you're going to have, but you're going to have some and you got your house yeah or or you know dump some in a college fund all those kinds of things you're not going to have as much as you think you're going to have but you're going to have some and you got rid of the hassle factor while you got a brand new baby and life is good you're clear you can come back and buy rentals later uh but if you didn't own this right now and you had 150 000 in the bank you wouldn't go buy a rental today right yeah but not yeah so i'm just

reverse engineering on you here yeah so jade's exactly right i i agree with her i would just clean this up and you'll get you another rental you bought this at a different time in your life a different stage in your life your head was in a different space and right now you're in dad and a good husband mode and you're thinking more about making sure all of the fort is secure. We've got a fence around it, all this kind of stuff. And, yeah, I like every bit of that. I would do every bit of that. Be very careful.

Don't overspend, obviously. We want to make this money go as far as it will go. But, yeah, that's definitely the direction I would go personally. And then you'll get another rental later. You'll save up and pay cash as you build wealth later on down through your financial peace baby steps process. I love that plan. Now the business of he said recasting his. No, I would not recast. Do not recast. Recasting a mortgage is refinancing it to lower the payment based on a new lowered balance. We don't want to lower the

payment. We want to increase the payment. We want to get out of debt, not stay in debt longer. Recasting means I'm going to stay in debt longer. No, recast. No, no, no, no, no, no. Yeah, because that's just changing the payment. It's not changing the interest rate. It might change the interest rate. Well, if they will recast that at the current rate, they'll charge a fee for doing that usually. But I wouldn't even do that. No, thank you. No.

Nope. The goal is to pay it off. That's right. Not to not pay it off. And that's the whole process here. Hey, good question. That puts us out of the Ramsey Show and the books. We'll be back with you before you know it.

In the meantime, remember, there's ultimately only one way to financial peace, and that's to walk daily with the Prince of Peace, Christ Jesus. Hey, what's up, guys? It's Jade. Look, if you like what you heard in this episode and want to know more about getting started on the Ramsey Baby Steps, go to RamseySolutions.com and click the Get Started button. We'll help you figure out the best next step for you based on your specific situation. That's RamseySolutions.com and click Get Started.