$20k from sale

[tknj99]

Hi All,
I may have a solid offer on my 1st purchased rental at a $20k net (after realtor fees and closing). This is not a profit, but instead a return of part of my equity in the property. So.. what can i do with the $20k that would be legit and not threaten a future Ch7 where i walk away from 3 other rentals and try to eliminate 55k in cc debt between me and wife?
I was thinking of these scenarios:
1. I use it to pay down some of my eqty loan on my primary residence
2. I use it to replace windows on primary res
3. I use it to remodel pool and add heater, have patio pavers installed in yard, tile both balconies, and redo front entrance steps and landing.

Do you think that any of the 3 or all of them are legit?
Thx..
-tk

[HHM]

Cash is cash, there is no exemption for equity in non-primary residence property...so the fact that this is not profit really doesn't matter.

First thing, you will need to wait to file, at least 3 months, better to wait 6 months.

As for what to do with it, you need to talk to a lawyer (and not some cheap lawyer, take some of that money and spend it on a GOOD lawyer that can actually help you with that question).

The rules can sometimes vary among districts as to whether and how you can use cash.

As to
1. No. prepaying loans is a bad
2. Probably ok, new windows save energy etc (assuming your current windows are actually old).
3. Home "repair" is ok, home "improvement" is not. Thus, putting in pavers and tiling balconies, probably not. Adding a pool heater, probably not.

When it comes to dissipating cash, you must try to spend it on things that are "needed".