Best way to maximise this inherticance - keep tiny house that needs work, pay off mort or do extension?

[SoThisIsSummer]

I hope its OK to ask here as well, I dont know where to put this....

House is tiny, needs re wiring probably, and lots of money spent on it - bathroom reconfiguration, kitchen same.....new carpets....only good thing is heating and boiler!

Rent would be 400 a month max and its not in a great position or area.

1. Invest in run down property to rent out ( its 300 miles away)

2. Do extension on my home in much more desirable and price rocketing area ( we could do with side recess kitchen extension and new kictchen) which would of course add good value when we come to sell.....

3. pay down our small ish mort? ( about 55 K) I dont work at present, dh on small ish wage ( around 24 thou)

Pay down mort with it....

whats best way to maximise this inheritance!

I'd have an extension as long as you are coping with the size of the mortgage already. It adds value to the property. You'd lose a lot of money having someone manage the rental otherwise.

Pay off mortgage if you can. That way , you will have the choice / freedom to decide on other things with the freed up income as well as the security of knowing whatever happens, you will have your home.