Ive been reading MMM for about a year and a half now and it has changed my life. I am 43, live in Seattle with my wife (33), 2 year old son and a baby girl on the way in October. My goal is to spend as much time with them as possible coming up and of course I believe to best way to do that is to retire early.
I have worked in the Seattle for over 15 years. My job makes me about 140k/year, but long hours and lots of stress have me wanting to leave it all in about 3-4 years. That's why I would love to hear advice from any of you on the forum. I'm not sure what would be the best move for myself and my family.
Over the last decade, as I worked, I saved my money to buy real estate and become a landlord. In 2006, I was up to 7 properties but it was too much to handle. So I sold a few before the crash and a couple after. So, now I am at three.
In the first few months of reading MMM, I made the decision to start paying down the property loans instead of investing more in stock. The properties are located in Seattle, always rented and all have good cash flow.
1st property:
Duplex worth about $575k - owe $54k at 4% interest
(before MMM - I owed $280k! I sold some stock to make this happen and cut down on expenses -way back. Everything and anything extra I made for the last 18 months went to this property.
* the plan is to have this place free and clear by this October.
**EDIT -Rent for both sides is a combined $3800/mo.
House (primary) worth $475k - owe $253k: 2.875% /15 year
current payment is $2265 PITI
2nd House worth $460k - owe $304k: interest only (right now, I believe it's just under 3%)
current payment is $1,100 (no principal)
** EDIT - Rent is $2300 a month
So, I dont want to make this post any longer than it already is- but here is my question. My goal is to pay off all 3 properties and live off that money and quit my job. After budgeting for taxes, repairs, insurance. I should still be at around $75k a year in cash flow. (current family budget without house costs at $25k/year)
So I'm curious, does anyone have any advice on what should be my next move? After October and the duplex is paid off, do I pay off my primary house next... or the 2nd rental house? What should I be considering when making this decision? Thank you for all your advice!!!