Looking for more practical/experience advice.
DW and I own a house in socal. Roughly 1.2-1.4m value (who knows exactly ) and owe about 680k. I'm currently out of country for work so we're renting it for about 1200 over mortgage (5500/mo rent, 4250/mo mortgage, insurance and taxes).
Were planning to FIRE and relocate to about half the cost area (400-500k house), which creates some options.
Monthly non-house costs are roughly 6k post fire (4k pre fire so 1k for medical and another for buffer).
Current portfolio is around 3.6m which makes a pretty low SWR once we move and cut mortgage.
My previous plan was sell house buy new house live off investments because managing a rental seemed like a nightmare.
But... We've been dry running living from investments and fluctuations are more stressful than I thought.
So plan B. Pay off house and rent it out. 4-5k rental income can cover most of our expenses... Still have a big chunk of investment and so far management company has been good and pretty affordable.
Then we either mortgage the new house for more like 2k or just buy it outright and reduce investment to like 2.4m. That would be mostly an interest rate and tax decision I guess.
I'm just wondering how anyone fared with rental incone vs investment incone? It might be 6 in one half dozen in the other but seeing the 5500 hit the bank account while the market acts nutty is VERY enticing....
But I haven't been doing it long so maybe a 6 month stretch with no renters is just as common/stressful.
Thanks all!
Sent from my HTC One_M8 using Early Retirement Forum mobile app
DW and I own a house in socal. Roughly 1.2-1.4m value (who knows exactly ) and owe about 680k. I'm currently out of country for work so we're renting it for about 1200 over mortgage (5500/mo rent, 4250/mo mortgage, insurance and taxes).
Were planning to FIRE and relocate to about half the cost area (400-500k house), which creates some options.
Monthly non-house costs are roughly 6k post fire (4k pre fire so 1k for medical and another for buffer).
Current portfolio is around 3.6m which makes a pretty low SWR once we move and cut mortgage.
My previous plan was sell house buy new house live off investments because managing a rental seemed like a nightmare.
But... We've been dry running living from investments and fluctuations are more stressful than I thought.
So plan B. Pay off house and rent it out. 4-5k rental income can cover most of our expenses... Still have a big chunk of investment and so far management company has been good and pretty affordable.
Then we either mortgage the new house for more like 2k or just buy it outright and reduce investment to like 2.4m. That would be mostly an interest rate and tax decision I guess.
I'm just wondering how anyone fared with rental incone vs investment incone? It might be 6 in one half dozen in the other but seeing the 5500 hit the bank account while the market acts nutty is VERY enticing....
But I haven't been doing it long so maybe a 6 month stretch with no renters is just as common/stressful.
Thanks all!
Sent from my HTC One_M8 using Early Retirement Forum mobile app