I feel i already know the answer depends on what I want now and later but here it goes.
Im 32 male in san jose ca, saved a ton and bought 3 properties in the down market in the bay area.
Stats:
got a Wife who no longer works (we both wanted her to be home with the kids) , 2 year old, 1 year old and another on the way and I want to retire soon (35ish) as Im stressed, fat, bad anxious habits and totally alone in mustachianism in my group of friends family and coworkers. I want to improve on my mustachian frugality and am struggling. our house is 900 square feet 2br 1 bath so we will out grow it with the 3rd kiddo
earn 130k year as medical device sales rep. 6k annually contributions to 401k. we spend 5k a month on needs but mostly dumb crap we don't need (wife disagrees)
35k in 401k
75k in personal portfolio
20k cash on hand
assets:
7 plex. debt 444k valued at 800k - cash flow 2200/month after expenses -- 25 year loan. bought oct 2012
duplex1 - debt 230 valued at 500k - cash flow 800/month 30 yr loan bought july 2011
duplex2 - debt 345 valued at 925k - I live in it so the other unit rent is 1750 and my total expenses are $3400 so with the rent we pay about $1650 for PITI (principle, interest, taxes and insurance). 15 year mortgage with 12 years left bought 2009 then re fied
Here is the dilemma, I believe we are at the top of the market in the bay area as it has sky rocketed. Since duplex 2 is our principle residence we can sell with out taxes and pocket 500K!!!! crazy right? with that cashola we can pay off the 7 plex and have the 2200 cash flow go up to 4700! leaving us with a grand total of 5500/month passive income from RE alone but no where to live in the most expensive place in the country. (WE could move in with parents for 2 years and combine the 5500 a month with another 3000 a month from my check to savings. 2 years of badassisty and 8500 a month would kick ass and then I can go build my own house outright and be retired at 35. I kinda love this….
OR
Keep it all as it will all pay itself off in time,( duplex 2 would cash flow about 800/month if we moved out) cut expenses, save 3k month total by moving in with parents and then what? RE is way to pricey to buy and it would cost about 3k month to rent a 3br 2 bath house.
Wants: 1 year abroad in ecuator with family. should cost less than 3k/month. Cant do this until the 3rd much kin is at least 2 so 3 years from now.
free lifestyle to do different kinds of work by choice and travel long periods abroad with family.
Whadda ya think?
side note* we don't like the city and want to move somewhere in norther cal less expensive but still able to visit friends and family if anyone knows of a wonderful mustachian friendly place to call home that is good to raise kids. ants: 1 year abroad in ecuator with family. should cost less than 3k/month.
Thanks,
LiveLife