My situation:
I’m single with no kids living in Portland, OR. I work as a metallurgical engineer. My disabled dad lives with me and I give him money every month, but can’t claim him as a dependent. I had three elderly dogs in 2016, one passed away late last year so now I have two again. My boyfriend and I share a 2005 Toyota Matrix. I bike to work 2-3 times per week (17 miles round trip).
In late 2015 I purchased a foreclosed 20 acre farm in Montana with a partner. The asset/liabilities below are only my half of the Farm. I plan on moving there once I retire, plus it has income potential as a rental. We currently have one renter at $400/mo. All rental income currently is going back into the property to make the other rentable spaces rentable. Total income potential is about $1800
Spending/Income for 2016
Gross Salary: $92,121
Income tax: $15,644
Medicare&SS: $6,957
Insurance: $1,180
401k (my cont): $9,073
401k (employer cont.): $4,348
Rental income: $10,200
Net income after 401k: $65,167
OTHER SAVINGS
Home Principle: $11,346.28
Farm Principle: $2,317.82
IRA: $1,030
Taxable Investments: $11,250
SPENDING
Alcohol & Bars $329.52
Auto & Transport $1,013.85
Clothing $512.07
Entertainment $160.87
Farm improvement $1,594.85
Fees $21.30
Gift / Charity $721.93
Business expenses $720.00
Groceries $1,958.65
Health & Fitness $451.06
Home Improvement $1,327.06
Misc Expenses $59.46
Pets $3,831.83 (3 dogs, now down to 2)
My Pop $1,850.00
Restaurants $468.82
Misc Shopping $174.13
Sports $498.83
Tax Prep & City tax $360.00
Travel $1,280.20
Utilities $2,049.75
Home Interest/taxes/ins $8,017.68
Farm Interest/taxes/ins/PMI $6,770.18
HELOC Interest $521.83
Total spending $ 34,693.87
Assets
Home in PDX $363,000.00
Farm in MT $170,000.00
401k $84,774.60
Trad IRA $3,466.73
Taxable Investments $25,211.75
ESOP $33,838.00
Vehicle $3,000
Sum $683,291.08
Liabilities Current balance Origination Date Interest Rate Term
Home loan $ 136,562.65 Apr-13 3.25% 15 yr
Farm loan $ 125,106.47 Oct-16 3.875% 30 yr
HELOC $ 7,640.68 n/a 4.50% n/a
Sum $269,309.80
Net Worth $413,981
My question!
I would like to retire in late 2020 at the ripe old age of 40. My plan is to sell the Portland house and pay off my half of the Farm mortgage, which reduces my spending to <$20,000 and, according to my calculations, allows me to retire. Ideally, I would like to rent my house in Portland (I think I can get ~$1,650/mo), because I think it would make me more financially stable in the long term, but this seems just out of reach with my current financial situation. Do you, the Mustachian community, see a crafty way to rent out the Portland house and still retire around the same time? Are my assumptions that renting this property will make me more financially stable in the long term correct? Do you see flaws in my plan? Thank you for any help or advice you can give me!
And please bring on the face punches!
P.S. I did my best to format this so it isn't a nightmare to read, but I wasn't entirely successful. Sorry!
