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How should we spend 250k from settlement?

So my mother will be receiving a 250k settlement soon. We currently live in a triplex that we own and we live in the front unit and rent the two back units and receive $1800 a month in rental income for them.

Mortgage is ~ $1800 a month and we currently owe about 215k with a 4% interest rate with about 12 years left.

My mother wants a single family home in an area where prices average $600k.

My initial thoughts are to pay 100k towards the mortgage and have 5 years left on that triplex before pay it off. We can hold on to the 150k for when we find a home that we want to buy (store it in a CD or high-yield savings account).

If and when we do buy rent out the front unit and have about $3k in rental income which will pay the 1.8k mortgage giving us 1.2k to help pay our new home mortgage.

My dad and brother’s income is about 2.5k a month after taxes, mine is about 3.5k. With this we should have more than enough income to make this possible and pay for utilities, food, etc.

Any thoughts, feedback/suggestions?

submitted by /u/ajrvega
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source https://www.reddit.com/r/RealEstate/comments/ehy85q/how_should_we_spend_250k_from_settlement/
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