craigmac3030
Confused about dryer sheets
My wife and I both 34 have been saving well for the past 11 years. We were both mil pilots and she recently separated to stay home and raise our 4 kids (6,5,3,1). I'm still a working major and plan to stay in 8 more yrs to get my retirement check.
Here's our financial situation
Liquid-$25k
529-$8k(both transferred post 9-11 gi bill to kids, which should cover 50% of college cost)
IRA's-$200k
Mutual funds/stocks-$685k
Home 1(worth~$200k) paid off. Rental 1 income $1200/mo
Home 2 (worth ~$240k) owe $219@3.25% 30 yr mortgage payment is $1500/mo
Rental 2 income $1800/mo
Home 3 which we live in (worth $460k) owe $420k@3.25% 30 yr
mortgage payment is $2500.
Post tax income from employment is $7500/mo.
No debt other than homes and credit cards that are paid off every month.
The question:
My in laws just recently moved from Michigan to California and due to a recent increase in disability pay are able to afford renting a home at $4,000/mo. They want to buy the home they have been renting(approx 1 mil) but only have about $150k to put down.
We have discussed putting 500k into the house with their 150k and then we would be the home owner's and they would pay us the $4k monthly rent and we would own the home.
Pros:
$150k in instant equity, reliable income from the home for approx 15 yrs (they are 67 and in good health and are meticulous cleaners i.e. home would be well cared for).
Cons: would have to sell 500k in funds generating about $150k, of taxable income. Most of our nest egg would be in real estate. I have a great relationship with them, but am still hesitant to mix business and family. We would have to take on more debt vs having that money grow in the market and generating yearly dividends.
I'm interested if anyone else has done anything like this and if there are any pitfalls I'm not aware of. In all likely hood we'll maintain our stats quo, but open to all inputs thanks!
Sent from my iPhone using Early Retirement Forum
Here's our financial situation
Liquid-$25k
529-$8k(both transferred post 9-11 gi bill to kids, which should cover 50% of college cost)
IRA's-$200k
Mutual funds/stocks-$685k
Home 1(worth~$200k) paid off. Rental 1 income $1200/mo
Home 2 (worth ~$240k) owe $219@3.25% 30 yr mortgage payment is $1500/mo
Rental 2 income $1800/mo
Home 3 which we live in (worth $460k) owe $420k@3.25% 30 yr
mortgage payment is $2500.
Post tax income from employment is $7500/mo.
No debt other than homes and credit cards that are paid off every month.
The question:
My in laws just recently moved from Michigan to California and due to a recent increase in disability pay are able to afford renting a home at $4,000/mo. They want to buy the home they have been renting(approx 1 mil) but only have about $150k to put down.
We have discussed putting 500k into the house with their 150k and then we would be the home owner's and they would pay us the $4k monthly rent and we would own the home.
Pros:
$150k in instant equity, reliable income from the home for approx 15 yrs (they are 67 and in good health and are meticulous cleaners i.e. home would be well cared for).
Cons: would have to sell 500k in funds generating about $150k, of taxable income. Most of our nest egg would be in real estate. I have a great relationship with them, but am still hesitant to mix business and family. We would have to take on more debt vs having that money grow in the market and generating yearly dividends.
I'm interested if anyone else has done anything like this and if there are any pitfalls I'm not aware of. In all likely hood we'll maintain our stats quo, but open to all inputs thanks!
Sent from my iPhone using Early Retirement Forum