My Mom Destroyed My Rental Property

Summary

Podcast Summary: The Ramsey Show Highlights

Episode Title: My Mom Destroyed My Rental Property
Date: March 20, 2026
Host: Dave Ramsey & Ramsey Network team
Runtime: ~9 minutes (content analyzed from 00:12–08:52)

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Episode Overview

In this episode, a caller seeks advice after his mother, who had rented his property for 13 years, inflicted approximately $20,000 in property damage due to a series of poor personal and financial decisions. The discussion centers on how to handle the financial aftermath, explore the caller’s options for managing or selling the rental property, and broader lessons about financial responsibility and family boundaries.

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Key Discussion Points & Insights

1. The Caller’s Dilemma: Family, Finances, and Property Damage

• The caller’s mother has been renting his property but fell on “very hard times” after quitting her job and exhausting her retirement funds (00:12).
• Estimated property damage is around $20,000; the caller questions how to fund repairs given his current financial situation.
• Mother cannot pay for damages and has significant debts (00:39).

Notable Quote:
“She actually owes more money than she has. So, very hard times.” — Caller (00:39)

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2. Assessing Financial Position & Repair Options

• The caller has $19,600 in liquid savings, a paid-off truck ($30–35k value), a Mustang with $9,000 owed, and a stable military pension (02:17, 05:53).
• Lack of landlord insurance or legal lease; mother was not a formal tenant—no paperwork, deposit, or safeguards (04:31).

Notable Quote:
“This was strictly just because I was trying to help my mom out.” — Caller (04:31) “It’s on you. And I think that stinks to realize... We made a whole lot of mistakes on our own that got us here. Number one was letting mom live there, kind of knowing she wasn’t in a good financial spot.” — Financial Advisor/Coach (04:34)

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3. Family Dynamics and Responsibility

• Realization that helping family without boundaries or contracts can lead to substantial risk.

• The caller fully acknowledges the role his decisions played in the situation:
  “I’m fully acknowledged that this is in my hands and I’m going to have to be the one to solve this problem.” (05:00)

• Advisors caution that the mother will likely remain a financial burden for the foreseeable future (05:16).

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4. Financial Strategy & Solutions

• Advisors suggest using a combination of current savings and monthly surplus to pay for repairs over several months instead of draining savings at once (06:40):

Notable Plan:
“Maybe we spend ten grand now and then another five grand next month, five grand the following month, and then we’re done… using as much of our income to cash flow it versus draining the savings.” — Financial Advisor/Coach (07:06)

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5. Sell or Keep the Rental Property?

• The caller is weighing whether to keep the property and become a more “legitimate” landlord or to sell it and invest the proceeds (03:46).
• Financial details:
  • Owes $88,000 on the rental, worth ~$240,000; potential cash out after sale: ~$140,000 (07:33).
  • Considering investing proceeds in S&P or Dow or similar (07:48).
  • Rental as ongoing inconvenience versus investing for the future.

Memorable Moment:
“I could see down the road this rental continuing to be an inconvenience. I like the idea of you selling it and taking that money and investing it for your future.” — Dave Ramsey (08:33)

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Timestamps for Important Segments

• 00:12: Caller introduces dilemma—mother as tenant, property damage, financials.
• 01:41: Dave Ramsey questions why the mother isn’t working.
• 02:17: Caller outlines his financial assets and loans.
• 03:46: Discussion shifts to whether to keep or sell the property.
• 04:31: Admission of lack of landlord protections and formal agreement.
• 05:53: Advisors request a full picture of the caller’s finances.
• 07:06: Advisors outline a multi-month plan for paying for repairs.
• 07:33: Detailed discussion of property values and potential investment.
• 08:33: Dave Ramsey supports selling the rental for future financial security.

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Tone & Advice Highlights

• Tone: Empathetic but firm, candid about tough family dynamics, highly practical concerning financial decisions.
• Key Advice:
  • Own up to the mistakes of mixing family and business with insufficient boundaries.
  • Protect your own financial future over rescuing others indefinitely.
  • Consider selling the property to avoid future headaches, especially if being a landlord isn’t a passion or strength.
  • Use income cash flow to manage large repair expenses over time, not just savings.

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Conclusion

This episode delivers a clear lesson on the complexities of familial financial entanglements and emphasizes the necessity of boundaries, documentation, and pragmatic planning. Dave Ramsey and team ultimately advocate for reducing future risk and stress—potentially through selling the property and focusing on stable, passive investments—while remaining compassionate about the ongoing family support obligations.

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Transcript

[Radio Host/Advertiser]

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[Property Owner/Caller]

house to my mother about 13 years ago and she's fallen on very hard times because of some very bad decisions. And after trying to move her out, we've identified maybe about $20,000 of damage as a very rough estimate that needs to be taken care of. And I'm trying to decide where I should take these funds from.

[Financial Advisor/Dave Ramsey]

Okay. I'm assuming she has no money if she's fallen on hard times.

[Property Owner/Caller]

Yeah, that's correct. She actually owes more money than she has. So very hard times.

[Financial Advisor/Coach]

How long has this been going on?

[Property Owner/Caller]

The past two years. She quit her job. She's been living on off her retirement for the past two years and she has exhausted all of those funds and has.

[Financial Advisor/Coach]

When's the last time she paid rent?

[Property Owner/Caller]

So this was the last month I talked to her because it was the first month she paid in cash and I thought that was very suspicious. So I confronted her on it and she told me she only has enough for one more month of rent. So we've been spending the past few weeks trying to get her moved out so we can get repairs done.

[Financial Advisor/Dave Ramsey]

Where is she going?

[Property Owner/Caller]

That's still up in the air, either with myself or my younger brother, which isn't. I don't believe either of those options are the best option, but those are the only options we have currently.

[Financial Advisor/Dave Ramsey]

Is she, Is she. Well, how old is she?

[Property Owner/Caller]

She is 63.

[Financial Advisor/Dave Ramsey]

Oh. So why isn't she working?

[Property Owner/Caller]

You know, there's not a good answer for that. And the answer she's given me, you know, are just not very valid. So I can't, I can't give you a good excuse. It's either health problems or stress problems or mental problems. You know, it's all of those combined. But it doesn't, you know, it doesn't legitimize.

[Financial Advisor/Dave Ramsey]

Sure.

[Property Owner/Caller]

Her decision making.

[Financial Advisor/Dave Ramsey]

So there's 20,000 of. Of damages and you're. The question was where do I take the money from? What are your options?

[Property Owner/Caller]

So I currently have about 19,600 liquid stretched across my banking accounts. I also have a paid off truck that I use as my daily driver and I have a Mustang that I currently owe 9,000 on as kind of something I'm a little more sentimentally attached to than the truck, but the truck is my daily driver.

[Financial Advisor/Dave Ramsey]

What do you. What the truck? What's it worth?

[Property Owner/Caller]

It's probably worth 30 to 35,000.

[Financial Advisor/Dave Ramsey]

Oh, wow. So question long term, so your mom, let's say your mom moves out, you cover the 20,000 in damages. What happens next? You bring another renter in who has the propensity to do the same thing. And now you know, again, you're on the hook for however much the damages are like. What's the long term play here to not be in this situation again?

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[Financial Advisor/Dave Ramsey]

What's the long term play here to not be in this situation again?

[Property Owner/Caller]

Right. Me and my wife are still kind of debating that question. Whether it's worth keeping and renting out a little more legitimate with a very detailed lease agreement or selling the property, which I would prefer not to do. But that option is there too, just to make all these problems go away.

[Financial Advisor/Dave Ramsey]

So here's what I'm thinking. Let's. Let's, let's talk about the 20,000 first and then let's talk about George and I can give you some ideas for the long term play on this based on your finances. Yeah, I don't think your mom has the money. I think continuing to hound her about this is just going to be like you bashing your head against the wall. Fair enough.

[Property Owner/Caller]

Right? So, yeah, I've got the bruises to prove it.

[Financial Advisor/Coach]

You don't have a landlord insurance policy.

[Property Owner/Caller]

No, no. This was strictly just because I was trying to help my mom out and

[Financial Advisor/Coach]

she wasn't a legal tenant then. There was no deposit, nothing signed. Okay, so this is. It's on you. And I think that stinks to realize and we also need to take our part in owning that. We made a whole lot of mistakes on our own that got us here. Number one was letting mom live there, kind of knowing that she wasn't in a good financial spot and probably this day would come where she didn't take care of the place, she can't afford to rent, and we have to evict our own mother.

[Property Owner/Caller]

Right. Everything you said is accurate. I even let her know if she did move in with us That I don't, I don't want to have her pay any rent. All I care about is her getting back on her feet. So I'm, I'm fully acknowledged that this is in my hands and I'm going to have to be the one to solve this problem, so.

[Financial Advisor/Coach]

And she'll likely be your burden financially as well for the foreseeable future.

[Property Owner/Caller]

That's right. As well. That's one of my concerns.

[Financial Advisor/Dave Ramsey]

Yeah. So, yeah, if I'm you, I am going to scrounge together this, this money and I'm going to try to get this stuff done for the cheapest price possible. It's possible that you can do it for 24. Less than 20,000. Maybe you put your own sweat equity in it. I don't know the nature of the repairs. But let's talk about further down the line, the way you mentioned the 20,000, you know, scraping together from here and there. I want to know about your financial snapshot and if it makes sense to even keep this rental house. So tell us about you.

[Property Owner/Caller]

Yeah, I'm retired military, so I have a very stable pension that allows me enough to support two mortgages. It's not going to hit me financially at all. Just a big hit is going to be this complete liquidation of all my savings because I only have 19,600 liquid. So it's going to put me back to square one, which I'm trying to avoid.

[Financial Advisor/Coach]

How much are you making a month?

[Property Owner/Caller]

8,700.

[Financial Advisor/Coach]

And then what are your total expenses? Including everything. Insurance, food, bills, all the mortgages. What's your outcome?

[Property Owner/Caller]

3,000. My total income for the month? 8,000. My total expenses is 3,000 after bills, not counting groceries, just the bills.

[Financial Advisor/Coach]

So counting everything though, are you spending about five grand a month? You'd say yes. Okay, so you might have 3,000 left over each month? Yes. So we can cash flow this over the next month. Two month, three months to where you're not fully liquidating it all at once. Maybe we spend ten grand now and then another five grand next month, five grand the following month, and then we're done. All the while we're using as much of our income to cash flow it versus draining the savings.

[Financial Advisor/Dave Ramsey]

Okay, now what's the tell? Tell me about your current residence. What do you owe on that?

[Property Owner/Caller]

We bought this property in 2021 for 300. I think we owe 280 still left on it.

[Financial Advisor/Dave Ramsey]

What's it worth?

[Property Owner/Caller]

261. I'm sorry. Okay, what's it worth? Probably low. Four hundreds maybe.

[Financial Advisor/Dave Ramsey]

And what about the rental? What do you owe on it and

[Property Owner/Caller]

what's it worth, the rental? We owe 88,000. It's probably worth 240.

[Financial Advisor/Coach]

Okay.

[Financial Advisor/Dave Ramsey]

Okay.

[Property Owner/Caller]

So after selling it and everything, I'd probably pocket one. 140.

[Financial Advisor/Coach]

What would you do with that 140 if you had that sitting around on an account?

[Property Owner/Caller]

I would like to invest it into, you know, the S and P and the Dow or. Or whatever would be best and just leave it there.

[Financial Advisor/Dave Ramsey]

I love that.

[Financial Advisor/Coach]

Think about that plan versus being a landlord. It sounds like you don't love dealing with the physical issues, a tenant, the upkeep and maintenance. So if you could get a return by that money just being invested in, and it might be even more than you would have gotten if you had a tenant.

[Financial Advisor/Dave Ramsey]

I agree with that.

[Property Owner/Caller]

Right.

[Financial Advisor/Dave Ramsey]

And I don't know if you. I know you said you have a pension, but do you have a nest egg anywhere invested?

[Property Owner/Caller]

I do. I have a small investment with the Roth and the. Or not the Roth, I'm sorry, the S and P and the Dow.

[Financial Advisor/Dave Ramsey]

Okay.

[Property Owner/Caller]

Not very. Anything substantial worth talking about. It's 6600. But I do have the tsp from my time in the military.

[Financial Advisor/Dave Ramsey]

Then. I mean, I got to say, based on how this is hitting you as an inconvenience, I could see down the road this content, this rental continuing to be an inconvenience. I like the idea of you selling it and taking that money and investing it for your future or however you think it would be best spent.

[Financial Advisor/Coach]

Especially with mom potentially moving in. You're gonna have your hands full.

[Radio Host/Advertiser]

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