Hello all,
I'm 30, have been married 3 years, we have no kids but are trying now.
We have our old $140k house(owned for 5 yrs) rented to a family that cash flows $100/mo, maybe $10k in equity now, 30 yr fixed rate around 5%, we are paying pmi.
We now live in a $160k house with 30yr fixed (owned for 1 yr) at around 6%, no pmi. Not much equity unless we can sell higher in the future...we got a great deal and made some improvements. We plan on renting it out as well in the future as it is in a desirable downtown location but not a good school district.
I have $50k in a roth ira and fund it each year
I have $2k in 401k and am maxing that out up to my employer match 10%
Wife has $4k in 401k and is maxing that out up to employer match
Our vehicles were bought with cash but may need something new soon but it would be another reasonable cash purchase unless a better deal is around.(currently $5k hyundai and $3k ford truck)
No debt except mortgages and wifes student loans of $8k at around 5%.
We have around $80k in ING and checking right now to buy an investment property but haven't been able to come across the right one yet.
Wondering if we should keep looking, possible pay off student loans, possibly pay off mortgage to avoid pmi but we can currently write it off just like interest? We are savers and are responsible except for the fact that we have sat on cash for a year that is getting less than 1%. I go back and forth but feel the cash is more valuable to invest in a rental property than it would be to pay off 5% and 6% debt? I guess I feel I would borrow at that rate to buy the property so I shouldn't limit my options. ...and it's cash.
My goal would be to retire/fire before 60, hopefully semi retire long before 60 or atleast have the option. I also read posts about how SS could pay out less based on assets/income in the future so I would like to possibly keep that in mind to try not to get screwed for being frugal/responsible.
**edit - forgot income..I make $60k, wife makes roughly $55k per year.
Sorry for the length, just wanted to get all the details out and see if anyone had any advice!
Thanks so much!
I'm 30, have been married 3 years, we have no kids but are trying now.
We have our old $140k house(owned for 5 yrs) rented to a family that cash flows $100/mo, maybe $10k in equity now, 30 yr fixed rate around 5%, we are paying pmi.
We now live in a $160k house with 30yr fixed (owned for 1 yr) at around 6%, no pmi. Not much equity unless we can sell higher in the future...we got a great deal and made some improvements. We plan on renting it out as well in the future as it is in a desirable downtown location but not a good school district.
I have $50k in a roth ira and fund it each year
I have $2k in 401k and am maxing that out up to my employer match 10%
Wife has $4k in 401k and is maxing that out up to employer match
Our vehicles were bought with cash but may need something new soon but it would be another reasonable cash purchase unless a better deal is around.(currently $5k hyundai and $3k ford truck)
No debt except mortgages and wifes student loans of $8k at around 5%.
We have around $80k in ING and checking right now to buy an investment property but haven't been able to come across the right one yet.
Wondering if we should keep looking, possible pay off student loans, possibly pay off mortgage to avoid pmi but we can currently write it off just like interest? We are savers and are responsible except for the fact that we have sat on cash for a year that is getting less than 1%. I go back and forth but feel the cash is more valuable to invest in a rental property than it would be to pay off 5% and 6% debt? I guess I feel I would borrow at that rate to buy the property so I shouldn't limit my options. ...and it's cash.
My goal would be to retire/fire before 60, hopefully semi retire long before 60 or atleast have the option. I also read posts about how SS could pay out less based on assets/income in the future so I would like to possibly keep that in mind to try not to get screwed for being frugal/responsible.
**edit - forgot income..I make $60k, wife makes roughly $55k per year.
Sorry for the length, just wanted to get all the details out and see if anyone had any advice!
Thanks so much!