Buying a house in VT
Thought I would return to the forum to update my retirement plan. I live in an expensive area of the northeast and have been hesitant to throw in the towel due to the high cost of living and the inability to sell my house. I recently paid our 1mm mortgage down to 600k, house is worth 1.55mm (paid1.7) and have an accepted offer on a 300k house in Stratton VT. After the second home purchase we will have 6.4mm in investment assets for retirement , 50k in the bank and 1.2mm for our 3 kids age 7,5and 3.
I decided that I might as well execute part one of our retirement home strategy while I wait for an opportunity to sell the expensive 6000 sf house CT since the real estate market in VT has been abysmal for the last 5 years and is showing signs of life. The vaca house is 3300 sf with 5 br, 3.5 baths, finished basement with metal roof, new boiler and vinyl siding, so should be low maintenance and rentable.
Our monthly nut with the vaca place is 21k after tax which is doable with some consulting income I now have of 70k without touching principal, portfolio income down to 217k after mortgage payoff and vaca purchase.
Some in the forum called me crazy for feeling "stuck" so this move is both liberating and a little scary. What tipped the scale was real estate as a portfolio diversifier as I think I might actually make money on this second property. I am really excited about this, everyone in VT seem pretty laid back compared to where I live.