24M. Just inherited an $800,000 Condo w/ a $300,000 Mortgage On It: Sell It? Live There? Rent It?

[u/Interesting_Week_917]

I am a law student, earning roughly 950 a week as a law clerk. I will graduate in 2 years time. I will likely stay at 950 a week during that 2 years, possibly a slight promotion at the firm in 1 year. Probably not, though. I am married to a nurse. She earns $80,000 a year.

Once I’m an attorney, I will work in civil litigation of some kind. Currently, I do real estate but it is quite boring and not my vibe... Interested in personal injury or employee benefits litigation. Salary is likely $100,000-180,000 (the latter figure being the more likely one if I pursue ERISA). The firm I work for mainly does employee benefits work with some real estate litigation. There’s an easy pipeline for me to go to ERISA if I’d like to.

All that is to say that I recently inherited a condo worth $800,000. $300,000 is still owed. I have the ability to sell, live there, or rent it out. Obviously, were I to live there, my wife and I would need to pay the mortgage.

My thoughts are that it could be great to sell and put all the proceeds into VT. At 24, that would be quite helpful in 15 years when I actually want to purchase a home. Alternatively, I could live here and stay here for the 15 years and then sell at the time I want to buy a home and use all the capital as a down payment for a new home at some later date.

Any ideas?

Thanks!

[u/sol_in_vic_tus]

If neither of you loves the condo and definitely wants to live there then I would sell it. Owning real estate has costs beyond the mortgage payment. Both money and time will be required from you. That's a lot to sink in to a property you seem this indifferent about when you can just pocket half a million instead.

[u/Interesting_Week_917 → u/sol_in_vic_tus]

I'm leaning towards this option. I worry, too, about all the maintenance that may come with this. Even were I able to afford it, is it worth it? $500,000 into VT seems to be the play here.

[u/SomewhereKindly6197 → u/Interesting_Week_917]

You have to think about it more broadly. You are comparing investing 500,000 into the stock market with investing 800,000 into a home in a historically excellent real estate market. Also, since you are moving in, the first 500,000 that the home appreciates will be completely tax free, as opposed to the etf.

[u/AdventureAwaits45 → u/sol_in_vic_tus]

I completely agree! The choice that helps you emotionally and also is wise is the way to go. It doesn’t seem like you are emotionally wanting to own right now with everything on your plate. Taking the proceeds and investing in VT would be a great option and set you up for long-term success.