You’d be fine to buy another place.
BUT
One of investment real estates greatest advantages is your ability to leverage it with government subsidized loans. If you are just going to pay cash, or keep paying off mortgages super early, you’re most likely better off just dumping your money into equity index funds.
This has been argued ad nauseam on the forums. The pay/don’t pay your mortgage. The real estate vs index funds.
Financially, you don’t pay off your mortgage early. Leveraged, reinvested, and self managed real estate >= equity index funds > cash purchased / early pay off real estate.
So. If you’re really going to go down the path to more professional real estate, which is what your asking, then start treating it like a business. Use other people’s money. And money being fungible, your cheapest source of funds is from your primary residence. Start borrowing.
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This advice from Papa Bear makes alot of sense. If you are not going to use leverage, you are better off in the stock market. I think to mitigate risk tolerance for using leverage, make sure you have a comfortable cash cushion.
My wife and I are in a similar position, but we are about 5 years older. I teach community college and make 52K/year. My wife is working part-time in a seasonal job and makes about $1,000/month. We have a 2 year old son. We do not pay for child care.
Our W-2 take home after taxes, pension and health insurance is $3,200 + $800 = $4,000/month. Our rental income is $1,500/month after vacancy and repairs. Our expenses are $4,500/month. We spend about $500/month of the real estate income and save $1,000/month.
We have 3 rentals and a primary home. One of the rentals is a duplex.
Our total mortgage obligation is 1,136,810. The value of the real estate is 1,715,000. We have 34% equity (578K) and 66% leverage at the moment. Our monthly mortgage payments are $6,835/month, including our primary ($1,275). Our total rent generated is $8,500/month.
These numbers are big considering we only make about 60K/year at our day jobs. However, we currently have 65K in cash as an emergency fund. If shit hit the fan, I could easily get a 2nd job or my wife could get a full-time job. If things got really bad we could also rent out our basement on airbnb or as a long-term rental. We would need to create a separate entrance, which would cost about 2-3K.
My step-dad makes 150K at his day job and owns 90% of a 39-unit apartment complex. Each unit rents for around $1,100. He has a mortgage. You can probably estimate the numbers. They are huge.