Hi All!
My husband and I have recently decided that we would like to be FI and in the rental business in about 6 years. Could use your help to see if you think we're on the right track and to throw out any tips you may have! We have 2 kids ages 1 and 3.
Income Info (gross)
Husband (29) works as a Software Engineer making $85,000/year
I (27) work as a Logistics Coordinator making $40,000/year
My husband owns an ebay business where he buys/resells items making around $5,000/year (low estimate)
We own a rental condo that brings in $400/month after mortgage, condo dues, insurance etc.
Total gross income: $135,000
Payroll deductions (pretax): All out of my paycheck (better benefits and husband has no 401k match)
Health insurance: $52/month
Flex med and daycare: $250/month
401k: $825/month including match
Brings our net to: $7025/month
Expenses:
Mortgage: $1725
Daycare: $1000
Gas: $225
Cell Phones: $150/month total
Gas and Electric bill: $100
Groceries/houshold purchases: $500
Life Insurance: $75
Gifts: $40 (this includes Christmas, Birthdays, weddings and any other random gifts we have to buy)
Date night: $40
Slush (mostly entertainment/kids activities): $100
Clothes: $40
Donation to church: $100
Car Insurance: $75
Savings for misc home/car expenses: $75/month
Internet: $40
Total expenses: $4285
Savings:
For rental properties: $2,225/month
Vanguard taxable: $100/month
Kid's 529 plans: $175/month
Total savings: $2500
Plus 401k contributions of $825: $3325/month
We also get bonuses of about $5,000/year that go straight towards more rentals but since they are not guaranteed we don't count them in our numbers.
We have no student loans, no car loans (2007 Accord and 2009 camry) and no credit card debt.
Savings balances:
My 401k: $40,000
Husbands IRA (rollover traditional and Roth): $50,000
My IRA: $6,500
Rental Savings Account: $15,000
General Emergency Fund: $5,000
Our main strategy for FI is rental properties. We'll just keep accumulating them until they cover our expenses/savings goals. Sounds a lot simpler than it is haha. We live in the Milwaukee area and figure to get a 4 unit building we will need around $70,000/building.
Thoughts/ideas? My husband is looking for a closer job which would cut down gas expenses.
ETA: I forgot to add back in the money we get back from Flex Daycare each month ($384). This also goes into savings.