Okay, so...my first stop on the way to mustachian bliss was paying off the mortgage on my first home (now a rental property), that I mortgaged (pre-crash) for $47K at 6.875%. Refinancing was not an option, since most lenders won't touch properties worth less than $50K, and to top it off, foreclosures on the street are going for less than what I paid.
So things being what they were, I took my savings bonds from when I was a kid, and made a big payment towards the principle, leaving me with $27K left on the mortgage.
I got a 0% balance transfer credit card, and took advantage of a deal on an existing card, and threw another $17K at the mortgage, leaving me with about $10K left to pay off on the mortgage. (And $17K of debt at 0% interest until August 2013.)
I *could* put $3500/month towards the principle, and have the place paid off in the next few months. But I'm starting to second-guess my plan.
So, the questions:
When would you apply for a HELOC against the rental property (this will be my emergency fund); should I wait until I pay off the house entirely?
Or, should I get a HELOC now, even though the line won't be as large? Because my emergency plan, were a true emergency to arise, would have to be asking my parents for help since my credit cards are just about maxed (at 0%, though, remember).
Should I start investing the extra $3500/month I have available for savings (instead of paying down the mortgage), now that the amount of interest I'm paying on the mortgage is down around $50/month? Or put a part of that towards the credit cards now, even though they're at 0%, just to get some head room?
I would like to purchase another income property in 2013, so some options impact my ability to do that more than others.
My goal is to build my stash as fast as possible; I'm uncomfortable with a lot of risk, but I'll ignore my discomfort (obviously) and do something rash like use up 90% of my available credit to pay down the mortgage, if the numbers make sense. :)
Thanks in advance!