🛠️ What financial upside awaits renovating an inherited fixer upper?

You have a $250k inheritance, $50k in savings, and the skills to turn a botched flip into a dream home. But does sinking your windfall into a primary residence beat investing it in the market?

This calculator compares the projected wealth of buying and renovating the fixer-upper versus taking a vacation and investing the rest. It factors in your sweat equity, carrying costs, and opportunity cost.

Since you have professional renovation skills, your sweat equity can force appreciation. Estimate the cost of materials and the new value of the home once the work is done. Note: This model uses undiscounted cash totals for carrying costs.

The alternative is to stay in your current free housing, take a well-deserved vacation, and invest the windfall. This path avoids the headaches of homeownership and lets compound interest do the heavy lifting. Note: This model uses undiscounted cash totals for rent.

This view was inspired by:

• cash-vs-delayed

For further related reading, check out:

• Reddit