Hi folks, I've strived to be as Mustachian as I can over the years, but I'm really buckling down now and I could use some help figuring out my sell vs rent tactic to get FI faster. I think the numbers look like I should sell one or more of my rental properties soon, but I'll admit I'm letting emotions get in the way because I always envisioned myself having this passive income into old age. Help me see this as just numbers please!
I have two rental homes and a home I live in. I'm trying to figure out if I should sell one, or both rentals in order to retire sooner than later.
Here's my annual financial picture:
Duplex value: ~$750,000
Mortgage remaining: $315,000 @ 3.25% with 27 yrs remaining on loan
Net rental income: $16,200
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If I sold the duplex I would stand to get ~$435,000 to invest, but miss out on $16,200 in rental income which would increase over time because I'm in a hot market.
Triplex sold value: ~$1,100,000
Mortgage remaining: $570,000 @ 4.25% with 29 yrs remaining on loan
Net rental income: $28,824
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If I sold the triplex I would stand to get ~$530,000, but miss out on $28,824 in rental income which would increase over time because I'm in a hot market.
Non-rent family income: $155,000
Annual family expenses: $90,000 (this includes another mortgage amount for the home I live in which I will not sell)
Current savings: $317,000
Thank you in advance wonderful, Mustachians!
