By move I mean the figuratively and literately. This thread is asking, is the following a wise financial plan?
I have developed what I think is an aggressive FIRE plan. It combines creating assets to fund retirement with rental properties and a stock portfolio.
I currently own a large house on a sizable piece of land, unfortunately the house also came with a large mortgage. We like the house and the features it provides, but on the scale, achieving FIRE weighs more. If we stay in the current home, even with significant additional principle payments each month, it will take 10 years to pay it off.
I have run the numbers and feel the following plan would be in my families best interest in the long term to achieve FIRE.
1. Sell the large current home.
2. Purchase 2 townhouses, rent one and move into the other.
3. Live in townhouse until its paid off. (3 years) (We are a family of 5, so the townhouse will be tight for us, but I have buy in from everyone due to the fixed living window of 3 years or less)
4. Move out of townhouse and purchase larger home, but smaller than original sold home. (In essence sacrifice living room for 3 years to jump start the FIRE plan)
5. Use income from 1st paid off townhouse to accelerate the payoff of 2nd townhouse. (5 years)
6. Live in new home and make additional principle payments to pay off mortgage. (6 years)
The mortgages I would be getting would be 15 years or less and I would be paying significant amounts on the principle each month.
The end state would be to have after 9 years, 2 fully paid off rentals and primary residence.
I have calculated that after the 9 years of executing on this plan, my stock portfolio, combined with the rental income, and a paid of primary residence, I would get to 85% of my income needs. Living expenses are $43k a year. I am Ok with the other 15% coming from misc sources (side jobs) including exploring creative ways to cut living expenses.