Christine is calling in she has an issue that she believes is a little cold. She has to decide on selling her second property, which she rents out. The tenant, however, is her sister. She doesn’t want to sell it, but she would like to use it in different investments. Unfortunately, her sister cannot afford a home financially, so if she does sell, her sister will be out of a place to live. She really would like to clear her debts to move on to the next step in the Ramsey Process.
Christine charges her sister rent, but it barely covers the overall cost. The rent is just equal to the mortgage, so Christine is losing out regarding taxes and everything else. She is losing money slowly but tries to write it off as ok because of family. The Team believes she needs to sit down and have a heart-to-heart with her sister. No matter the size, a loss is a loss and slowly draws you back from the overall goal of being debt-free.
Christine’s sister is being charged market-rate rent, so if she can afford that, she will afford it somewhere else. The Team suggests giving Christines Sister a 3-6 month heads up and start looking to save up for emergencies.
Dave Ramsey’s 7 Babysteps For Success