Originally Posted by Markola
M Still, just to play "What Ifs", do you really want to try to manage U.S. real estate from the Philippines and traveling the world? I am not experienced in real estate, on purpose, but that seems a headache to this novice. If all of the RE was liquidated and something like $2 million invested, a 4% SWR would kick off enough to live really comfortably wherever you want to be. Also, in case you don't know it yet, the Go Curry Cracker site/blog seems a perfect fit for your interests. You are inspiring!
Your point about RE is a concern, and long term, we definitely plan on selling. Our exit strategy isn't clear yet, but definitely want to time it well (huge casino being built near 3 of our houses currently) and maximize tax implications.
Oh and yes, Go Curry as well as others like them have been an inspiration to us!
Originally Posted by Rickt
Congratulations on accumulating retirement assets at such a young age. A couple of things bother me about the plan viz:
1. Home Mortgage is high. It would be safer to have no mortgage payment.
2. Owner financing: At 8% it is a good investment. Hope you don't have to foreclose in the future though.
3. Rental Units: May need capital improvements in the future. Also how are you planning to manage them while you are overseas for an extended period of time?
Yes, mortgage is too high, esp finally if we really are gone half the year.... Would plan to sell our primary in 2017 or sooner and either rent or get a low maintenance cheaper home when we find a good home base. We love he house but just not the right fit for our lifestyle...
The owner financing property is actually non owner occupied so if we need to foreclose, we would be able to do it easily. It is also worth more today than the loan value, so risk is pretty slim that this would be an issue. He will most likely sell and pay us off early ...at that time, we'll have to figure out where to reinvest!
And yes, you are absolutely right about the rentals. We may have a vacancy right before we leave for our trip in December, so that will be an issue. We'll most likely need an agent to help us, but aside from that, will try to manage remotely (been doing it I now from 3 hours away, so aside from time differences, hopefully we can manage short term). Also putting reserves in place in case it is vacant until we return....not ideal but at least we can enjoy our travels and not stress too much!
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