The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: freeatlast on September 17, 2016, 09:03:09 PM
-
So, I have been working very hard to pay off my mortgage and I think I can be done by the end of 2017. So question I have is this? When I am done, will I be FI? Please no face punches for the decision to pay off the mortgage, buy the rentals with cash, and for not getting enough rent!
Assets:
1. Paid off rental house - value $250k - rent $1200 - take home after taxes $1000
2. Paid off rental house - value $300k - rent $1400 - take home after taxes $1150
3. 401(k) - $350k (i am currently 47 and can't access this yet)
4. Main home worth $475k - is built like a duplex - could rent out downstairs apt if needed for about $800 (has its own entry, kitchen, bath etc...). I would prefer not to rent it though.
I am married but keep expenses separate from hubby. My portion of the property tax on main home will be $300 per month. I will need to pay about $200 in utilities per month. I am mustachian and don't mind living simply. I want very much to retire at 50, which will coincide with mortgage payoff. Can I do it? I am close, but not sure I am there.
Thanks!!!!!!
-
Will depend on your expenses. How much do you plan to spend each month/year?
-
I spend about $1800 a month but this does not include the $500 I will still need for the house. Ugg... so I think I will be short a little bit short every month.... So that means renting out downstairs or working at least a bit :( . I wonder how much in liquid savings I would need to carry me over til when I can tap the 401(k)...
-
You don't list rental expenses like:
Property Management
Vacancy
Repair set-aside
Taxes
Insurance
Termite Treatment
Utilities you have to pay
Possibly other items, too, depending upon the property.
Damages
Professional fees like accountants/lawyers.
Unless I misunderstood you, you are very much overstating your rental income. You appear to be confusing rent received with profit available for your livelihood.
-
You might do some "what if?"s in the case study spreadsheet (http://forum.mrmoneymustache.com/ask-a-mustachian/how-to-write-a-%27case-study%27-topic/msg274228/#msg274228), and then more detailed calculations in one or more of these: Best and/or Recommended Retirement Calculator - Bogleheads.org (https://www.bogleheads.org/forum/viewtopic.php?t=115839#p1686175).
We (more importantly, you) really need more details (e.g., SwordGuy's question) to give a good answer.