Should We Sell or Sit Here and Suffer in This House?

ashley is in salem oregon hey ashley welcome to the show how can we help hey dave well my husband and i are at a standoff my husband started a paint and remodel business last year and in his first six months produced 300k in production this is our first full-year owning business he's nearly at 600 for the year wow and we haven't even started booking for november or december is he making a profit he is yes we're doing very well and i'm actually a stay-at-home mom we have a one three and five-year-old and due to the state of the world i'm looking to home school next year and at the moment we're living in a two bed two bath 1100 square foot home with no yard for all these kids um debt-wise we've cleared all the 59 k in student loans and our mortgage which is only 170 remaining our house is a little bit of a unique situation and this may be the best opportunity we have to sell and make money with little to no modifications on the home the housing market out here is really hot right now so i think we should sell pay off the loans get a house that suits our family and the business which would put us on track for baby step three to pay that mortgage off but my husband isn't budging on it he wants to wait a year to see how the business goes and says he won't move until he's got 100k in savings to put down which sounds crazy um and my anniversary you know is tomorrow i told him the gift i would like is for him to allow me to list the house and i will assume all responsibility so he can continue running the business should we sell or should we sit here and suffer for a year and risk the market taking the crash even though i know my husband isn't going to let us fail so i think either way we go we're going to be fine [Music] ashley how you guys don't have baby step three correct no they have 59 000 in debt oh you still have 59 000 left in debt no we're on baby step too so we're paying off that debt but if we sold this house we would be able to pay off the mortgage and our student loans and then turn around and buy a house that'll suit us for maybe 20 years okay that part's not true but now you're exaggerating but yeah so ashley if i were you sorry i'd love i would love to be on your team on this call but i'm not going to be i'm going to be with your husband because i want you guys completely out of debt with a fully funded emergency fund before you make another move um but we have an emergency fund we've got um i don't even know how much but we have a lot of money in savings you don't know how much okay he has all the numbers i mean i feel like we've got at least 10 in savings that's not we have a tax account for the business that last year we had thousands and thousands of dollars extra in that because he's really on top of that i think we've got 10 000 in personal savings that he just isn't touching and then we have no credit card debt no card debt nothing like that we just have the 59 in the student loans and then our mortgage which is 170. the main issue here is that we live in an 1100 square foot house with three kids under five yeah totally and then we have two bedrooms i'm sleeping on the floor um yeah why um i i would sell the house and rent but i would not i would not i would not buy a house i would not buy it i'm open to that as well a wrench is fine i just want to get rid of this one while the market is hot because i think it's smart well you're not wanting it to get rid of it because the market's hot you're running you want to get rid of though because you're you're exhausted and you have no room with five people in your family that's the more that right because you wouldn't sell it's really that's why you want to sell not just completely emotional but uh but i don't mind if you want to rent uh sell sell the house pay off the the student loans and build your three to six months and if he wants a hundred grand in that's fine you can sit there and rent for two years sharon and i actually did that we we did it for a different reason we did it to move school systems and pull the kids out of private schools rachel was in kindergarten denise was in first grade second and second grade thank you and um you know we were paying private school tuition because the schools in nashville suck and so we moved out of nashville into the joining county where we've got great schools and uh rented for two years which is really difficult for me because i have been in real estate my whole life and emotionally to sit there and rent was ridiculously hard sharon hated that rental house to this day it was ugly though it was it was really ugly but to this day she gets an elvis lip sneer going every time she mentions that oh that house every time we bring it up so it's not a it's not a positive subject and um but we got the kids into a uh uh into a great school system we cut that expense out and we made that move but we still were cleaning up so there you go ashley i didn't even say i didn't even think about renting for you guys because you just own a home so i immediately went to write to the baby steps but for you guys you can but you but you can just go rent sell it and rent if that's what you guys want to do for sure because i'm with you as a mom i've got three littles basically the same ages and yeah i mean that's that's hard i get it i totally get it but you got to make decisions again not based on emotion but based on facts and you guys need to do what's best for your family financially and in the long run um while keeping your sanity but um you guys be on the same team too ashley i feel like the way you were wording everything was like well he's this i'm that you guys need to find that common ground and work together because you're going to just get so you're going to go so much faster in this process working closely together and being on the same team yeah it's almost as if um you know you're slamming your fist down and saying i've got to do this and he's trying to hold you back and be responsible and um you know and that you both have to what rachel's saying is you both have to identify what responsible looks like so responsible would be you clear your debts and you have an emergency fund before you buy a house okay what rachel said at the beginning of this now you can do that one of two ways you can sit there and endure the 1100 square foot with three littles for one more year and it sounds like with the numbers you've got you will be able to do that in one more year and you can do a lot of stuff for a year there's a lot of people got it worse than you know i grew up in 100 square foot house for 17 years uh so somehow my mother my mother pulled that off i don't know which i don't i don't have scars that i'm aware of from it so um you know uh and we never moved until i was 17 years old so um you know lots of people have have suffered less and more rather so you know you could do that for one year it won't kill you but if you want to move and have a little better lifestyle a little better situation and go rent for a year or two and do this in the right order that's fine i would not sell and immediately buy with no emergency fund absolutely would not do that if that's your only option between the two of you you need to sit tight and uh but if you're willing to move and rent and move again in two years after you get everything straightened around you got some reserves in the business you got the down payment for the house or maybe even i mean you may even be able to pay cash for a house almost the way you're going because he's making bank and he's doing a really good job managing this not these numbers and um and and holding you off from running the thing in the ditch so um you know you give this guy credit he's a stud so well done kiddo you're gonna be all right you'll get through it either way here open phones at triple eight eight two five five two two five you guys jump in rachel talk about that again for the listeners this getting on the same page thing and you know like i remember your mom and i had had a argument not dissimilar to her she was driving that old blue astro van and she wanted a better car and i had we had a block of money and i needed to do some stuff that i wanted to do some stuff at the office that would take that block of money and make it back five times over and i'm trying to go do that and she she's like i've had it with his whole car kind of similar conversation right to what ashley's doing and uh what we finally figured out was that we were not head to head that we got to do both it's just which order we did it yeah which one first yep which one's first and getting on the same page is everything it's that and les parrott always says that he wishes he could give a little box of empathy to everyone and that's it you need to empathize and put yourself in your spouse's shoes you saying we're he needs to do that for her because she is at home with three boys that's what i'm saying i would be dying too i'll get it girl cracker box with three littles i get that

Channel: The Ramsey Show Highlights

Views: 127,034

Keywords: the dave ramsey show, budget money debt cash, real estate, insurance, how to make money, dave ramsey, save, credit card, compound interest, buying house, buy, snowball

Id: yJE2SuPgjew

Length: 9min 2sec (542 seconds)

Published: Mon Aug 31 2020