DW and I are both 37, have been actively working towards FIRE for the last five years, and I recently sold my shares in my small tech business for $1.3MM cash.
Other key assets:
$500k in own home equity, $800k owing (HCOL area).
$65k cash in bank.
$120k equity in rental property #1 with $430k owing.
$70k equity in rental property #2 with $340k owing.
Currently building rental property #3 for $350k (to be valued at $500k).
btw - interest rates for borrowing are currently around 5% (not USA!).
We would like a minimum of $60k p/a (net) from our investments and will reinvest any excess.
So, to achieve this goal I can think of two (hopefully solid) options:
Option A
Sell our own home, buy another home for us for less than $500k (current own home equity) = no mortgage.
Pay off the 3 x rental properties which will deliver $76k (net), with $180k left over to invest elsewhere.
Option B
Sell our own home, buy another home for us for less than $500k (current own home equity) = no mortgage.
Invest the $1.3MM in the stockmarket and let the tenants pay off the rental property mortgages over the next 20 years.
BTW, I'll probably still bring in $20-$40k p/a from some other work.
So, what do you think I should do? Option A, Option B, or something else? Thanks ; )