From Divorce to Down Payment: Real Estate Moves That Build Wealth with Melissa Zimbelman
What do you do after you sell the house in your divorce? Do you buy again? Rent? Invest in property somewhere totally new? In this practical and empowering episode of Divorce Happens, host Olivia Howell welcomes back Fresh Starts Expert Melissa Zimbelman—veteran real estate broker and property manager—to unpack the real questions people ask when it’s time to financially rebuild post-divorce.
Melissa shares her 20+ years of real estate insight to help newly divorced individuals (especially women) make smart, secure decisions with settlement money. From deciding whether to rent or buy, to understanding capital gains taxes, inheritance options, and why your CPA, trust attorney, and financial planner should be your new dream team—this episode is packed with must-know info.
Whether you’re thinking about buying an investment property out of state, setting up a rental unit in your backyard, or wondering if you should go in on a vacation home with friends (spoiler: think twice!), Melissa covers it all. She even breaks down how to hire a great property manager, how to avoid financial traps, and how to turn post-divorce real estate into a path toward long-term wealth and freedom.
Learn more about Melissa here: https://www.freshstartsregistry.com/resourceguide/luxe-international-realty-property-management
Episode Transcript: Investing After Divorce with Melissa Zimbelman
Olivia Howell: Hello, hello! Welcome back to Divorce Happens, the podcast where we support you before, during, and after divorce with education, inspiration, and of course, a little bit of laughter—because divorce happens, and then you start fresh. We’re here again with one of our amazing Fresh Starts Experts, Melissa Zimbelman. I brought her back specifically because I get this question all the time during divorce consults: "What should I do with the money from selling the house?" So, Melissa, who are you, where are you, and what do you do?
Melissa Zimbelman: Hey! My name is Melissa Zimbelman. I live in Las Vegas, Nevada, and I’ve been in real estate and property management for over 23 years. We work with clients buying, selling, renting, and investing in properties—including internationally. My husband and I even own a home in Spain! So we’re seeing more people consider investing for their future outside the U.S. Thanks for having me back!
Olivia Howell: Of course. So here's the question: After selling the house in a divorce, what are the best options? Do you rent? Buy? Purchase and rent it out? Maybe even rent out a room in your home? What advice do you have for someone—often a woman—ready to invest in herself or in real estate?
Melissa Zimbelman: Great question. First, get professional support—a CPA, a trust attorney, and a financial planner. You need that “triangle of support” before making any decisions. One client might get $200K and should invest $30K into stocks or a money market for safety, while another might need to show a tax loss. Diversification is key, even if I love real estate.
Also, understand the tax implications—capital gains, estate planning, etc. Consult someone local to your state. Fresh Starts has amazing CDFA and tax professionals who can help.
Olivia Howell: Yes! It’s not just about the house sale—it’s also things like health insurance. I remember in New York, after a certain number of home sales, taxes kick in hard.
Melissa Zimbelman: Exactly. So once you’ve figured out what you’re working with, consider your options: You could add a tiny house or ADU in your backyard and rent it. A lot of women ask me about renting a room in their home. My advice? Be extremely cautious. Always run background checks—everyone seems charming until they don’t.
You can also invest out-of-state where housing and property taxes are cheaper. In Las Vegas, for example, 50% of homes are rentals, making it a great market. Hiring a trusted property manager is key—ask lots of questions and get clear on every potential fee. Never just go for the cheapest option.
Olivia Howell: You blew my mind when you said I could buy a property outside New York and manage it from afar.
Melissa Zimbelman: Absolutely. That’s what we do with our property in Spain. A good property manager handles everything—from maintenance to taxes—while we use it twice a year. If you’re thinking about retiring in another state, buy now, rent it out, and write off two annual visits.
Some folks even go in on vacation properties with friends, but be careful. If you’re not married, courts can’t intervene if things go sideways. It’s a financial relationship—so choose wisely.
Olivia Howell: That makes so much sense. Say someone has $50K for a down payment—what happens next?
Melissa Zimbelman: Work with a property manager and your financial planner to determine what kind of property fits your goals. For example, you might buy a $500K property that rents for $3,000/month. After expenses, you net $150/month plus equity over time. Just make sure to have a slush fund set aside for maintenance emergencies.
Olivia Howell: Got it. And it’s not always monthly fees for property managers?
Melissa Zimbelman: Correct. Usually, there’s a small startup fee and a monthly percentage of the collected rent. We hold $250 in an emergency fund for you—that’s your money. You don’t pay until a tenant is in place.
Olivia Howell: That’s such a smart way to make your money work for you.
Melissa Zimbelman: Yes! With the right property in the right market, it could cash flow monthly and appreciate in value. Even tiny homes or converted shipping containers are becoming rentals. You just need to research what’s allowed in your area.
Olivia Howell: Love the idea of a “single mom tiny house community”—so creative. Thank you, Melissa, for all of this incredible insight.
Melissa Zimbelman: Thank you! Most people build generational wealth through real estate—it doesn’t have to be huge or fancy. Just start smart, ask questions, and let it ride.