Hello Everyone,
I have been reading in the forums for several months, and wanted to get everyone's perspective on how my wife and I are doing.
Ages: 32, and 29
Income
Jobs ~ 160,000/year
Rent ~ $6,500/year after expenses (entirely in mortgage reduction, breaks even monthly)
~8,000/month after taxes/insurance/401k's etc
Expenses (Low cost of living area)
Food $600/month
Mortgage/interest/taxes = $1,800/month
Clothes = $200/month
Vacation = $200/month
Utilities= $150/month
Restaurants = $150/month
Gas=$100/month
Misc=$500/month
Car Insurance= $100/month
Total =$3,800/month
Savings
401k 10% with 4% match for both my wife and I.
Roughly $4,200/month excess cash
Assets
Retirement = $93,000
Cars =$28,000
Cash $10,000
Primary = $260,000
Rental = $140,000
Liabilities
Primary = $205,000 @ 15 year fixed 3.25
Rental = $100,000 @ 15 year fixed 3.25
Net worth $226,000
My primary question is what to do with the excess cash flow? I would like to diversify our income so if either of us gets laid off we would have an additional income stream to rely on. I am less concerned with maxing out our retirement accounts right now, as both of us have undergone multiple job losses in the past 5 years. I would like to achieve this through additional rental properties, but am open to suggestions.
My 15 year plan:
Buy 3 duplexes for ~ $160,000 per duplex/gross $1,600 rent/month per duplex in the next 3 years. At age of 35, and 32, start maxing out retirement accounts and throwing any excess to highest rental mortgage rates. Once we reach age 45 and 43 we should have little to no debt, decent retirement, and $5-$6k coming in which at this point we FIRE.
I know these numbers are a little rough, but I would love to know everybody's thoughts.
Thanks for the great forum,
Midwest Handlebar