<prompt> Human: Hi Personal Finance!Ive read the FAQs, the windfall wiki, and even hit the search button, but I still am curious what people would suggest in my specific situation. Theres a lot of pretty smart people here, but also a lot of conflicting opinions.Heres the basic details-Assets and Positives: Inheriting about 150K, much more than anticipated! No CC debt, own all my cars, no need for a new one anytime soon. Pretty good credit score in the low 800s. My current home, est. value 330K My rental condo, est value up to 340k, Brings in 2K a month rent, but I cover electric and HOA dues of 280 a month. 401K balance of about 100k, pension of 50K frozen. I put in enough to get full company match each month, but not much more. Anticipate another 30ish years in the workforce to build this up. Yearly bonus in February will likely be in the 18K range pre-tax. Debts and Liabilities: Owe 13K loan against 401K used when I purchased my current home. Owe 212K at 3.75 on current home. Owe 245K at 4.13 plus a HELOC of 27K at 4.24 on the rental condo Married, with 1 child. Likely will have 2 children and would like to help with 2 college educations eventually. Wife is staying at home to raise the kids, so no significant income from her. Wife has zero retirement savings, so mine will need to cover us both. Single income household, and my job security is ok,but far from guaranteed. A layoff would be catastrophic to us. Just finished a remodel due to some water damage, savings are very low right now. Thoughts- My rental condo is in a VERY hot market, but there is a limit. I think I can sell next year for about 375K, Ive never really turned a profit, just broke even, and managing it is becoming a pain so this is appealing. The tempting strategy, which is appealing for instant gratification reasons is, pay off the 401K loan and HELOC leaving about 100K left. Sell the condo, and make about 100K profit. Take the 200K and just payoff my entire mortgage on my home. Done, I own it outright. This would free up about 1700 a month I can then invest, put in college savings, whatever we want. Would also put us in a considerably better position if I ever lost my job to not have a mortgage. The smart strategy I am guessing is to keep paying off loans and just invest the majority of the money in some conservative way and forget about it until needed for helping kids with college or retirement?Tell me why Im right, wrong, or just missing the obvious?EDIT: Wow, I was hoping for maybe 3 or 4 people to weigh in. Thanks to everyone that responded, Im reading every single post! Lots of good stuff to think about. Heres what I have gleaned so far- Emergency fund. Emergency Fund. EMERGENCY FUND! A pretty big one, but not too big. Got it. Pay off the 401K loan. Talk to a real professional like a CFP. There is no rush to take further steps, research, know what I am doing before making any snap decisions. After that, consensus is a little less clear. Investing the max amount of the inheritance possible is the best way to maximize the money. Doing otherwise Im a chump giving up hundreds of thousand in theoretical gain. Paying off the mortgage is safer for the security of my family baring unforeseen disaster. Im a gambler playing with my familys future I dont do this. I definitely should sell the condo. Its in the way of everything! I definitely should NOT sell the condo. Its the only way of making any money at all!  <response>: Sounds like you identified the top 2 recommended paths. If you dont enjoy being a land lord, its probably worth selling. You can invest that money else where, be it your home or the market, and not have a time and happiness sink. Secondly, if youre going to invest conservatively, as in bonds or other less volatile investments, they do typically have lower returns and it might be worth comparing against paying down your various debts since they are guaranteed returns though you should take tax breaks into account which lowers the effective return on paying debt. If you just meant total stock market as conservative, ignore that thought. All in all, I think youd prefer your first option. 