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Hello,
Happy New Year ER Members! Thought of starting the year with making the good choices and leaning on this group again.
I have a rental property that is valued at 200K (considering broker / RE agent fees at the time of selling, value would be 212K). Outstanding loan amount on this property is $98,000 @ 3.25% 15 year fixed rate. Based on the amortization schedule, it will be paid off by Nov 2027.
yearly property taxes on this property: $3800
yearly HOA: $3600 (300 per month)
yearly mortgage: $18,324 (covered through monthly rent)
yearly rental income: $20400 ($1700 per month). Pretty steady.
Current cash flow: Negative $200
I have been sitting on ~60K cash (think of it as a safety cushion / emergency fund) and expecting some bonus in the next couple of months. If I pay off the remaining balance on mortgage, monthly cash flow will be Positive $1000.
Additional info: We have about $590K in 401k 90% of which is invested in stocks.
Question: Does it make sense to pay off the remaining balance on the mortgage or invest in the market? Thinking about VTSMX, VTIAX or any other recommended mix of index funds. Appreciate your thoughts.
Happy New Year ER Members! Thought of starting the year with making the good choices and leaning on this group again.
I have a rental property that is valued at 200K (considering broker / RE agent fees at the time of selling, value would be 212K). Outstanding loan amount on this property is $98,000 @ 3.25% 15 year fixed rate. Based on the amortization schedule, it will be paid off by Nov 2027.
yearly property taxes on this property: $3800
yearly HOA: $3600 (300 per month)
yearly mortgage: $18,324 (covered through monthly rent)
yearly rental income: $20400 ($1700 per month). Pretty steady.
Current cash flow: Negative $200
I have been sitting on ~60K cash (think of it as a safety cushion / emergency fund) and expecting some bonus in the next couple of months. If I pay off the remaining balance on mortgage, monthly cash flow will be Positive $1000.
Additional info: We have about $590K in 401k 90% of which is invested in stocks.
Question: Does it make sense to pay off the remaining balance on the mortgage or invest in the market? Thinking about VTSMX, VTIAX or any other recommended mix of index funds. Appreciate your thoughts.