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I am 65 years old retired and collecting SS. I sold my personal residence, and move back to my old rental house which I have a HELOC of $100K which I pay about $375 monthly interest only. As of now, I have the option to pay my HELOC or re-invest the money from the proceed of my personal residence. My question is, should I not pay my HELOC and continue investing on real estate to further my investment or stop and pay my HELOC and be debt free.

Thanks for your advice

AL

AL RUIZ
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1 Answers1

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Real Estate is all local. With no details on how you’d invest the home proceeds, it’s not a simple answer.

If you are able to invest the $100k and get a return significantly higher than the 4.5% you are paying, who would argue with that?

Since you already owned a rental, I don’t need to offer the warnings I’d feel compelled to give to the new landlord.

Keep in mind, the heloc interest is no longer deductible.

JTP - Apologise to Monica
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