Author Topic: Definitely need Mustachian advice - early FI or slog it out?  (Read 1735 times)

Jackson892

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Definitely need Mustachian advice - early FI or slog it out?
« on: January 29, 2017, 10:53:55 AM »
I am new here - and have read many of the posts.  I have a dilemma:

Commercial property - paid out in 10 years by business renters.  Will then produce regular income of approx. $8000/month IF rented on a regular basis.

Home mortgage - if we give EVERYTHING to it, work EXTRA hard, turn down other more "fun" opportunities, paid off in  years.

We could see the commercial, pay out the home, and have $$$ in the bank.  We could take the mortgage payment, invest, cut back on work, and continue to build retirement funds.

Or we could just keep it and work that much harder to pay off home.  No fun. 5 years. 

FYI we are 46 and 50.

WWYD????

cincystache

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Re: Definitely need Mustachian advice - early FI or slog it out?
« Reply #1 on: January 29, 2017, 11:59:37 AM »
I think you need to include more details and less typos in order for us to give solid advice.

How much are your living expenses?
Is the 8,000 gross or net of capex and ongoing expenses?
What is your job income?
You forgot to put a number before "years" regarding how long it will take to pay off your mortgage
How much money in the bank?
What do you currently have in retirement right now?

Need more info please.

Jackson892

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Re: Definitely need Mustachian advice - early FI or slog it out?
« Reply #2 on: January 29, 2017, 07:17:56 PM »
Sorry - house is $250,000.  Monthly income is about $6000.  The commercial property currently is a restaurant on a long term lease; we have a 15 year mortgage on it with about $500,000 left.  Tenant rent is paying the monthly mortgage but there isn't any extra.

cincystache

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Re: Definitely need Mustachian advice - early FI or slog it out?
« Reply #3 on: January 29, 2017, 07:51:09 PM »
Still not enough info. I would recommend posting a full case study if you want anyone to respond.

What is the interest rates on your mortgages? If the property will generate 8000 per month are you saying your mortgage payment is currently 8000 per month since the tenants cover it with nothing left over?

Very confusing

Metric Mouse

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Re: Definitely need Mustachian advice - early FI or slog it out?
« Reply #4 on: January 29, 2017, 11:36:22 PM »
Still not enough info. I would recommend posting a full case study if you want anyone to respond.

What is the interest rates on your mortgages? If the property will generate 8000 per month are you saying your mortgage payment is currently 8000 per month since the tenants cover it with nothing left over?

Very confusing

Interested in this too...

Prairie Stash

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Re: Definitely need Mustachian advice - early FI or slog it out?
« Reply #5 on: January 30, 2017, 03:39:56 PM »
Sorry - house is $250,000.  Monthly income is about $6000.  The commercial property currently is a restaurant on a long term lease; we have a 15 year mortgage on it with about $500,000 left.  Tenant rent is paying the monthly mortgage but there isn't any extra.
Remaining mortgage isn't the issue; what can you sell the property for? It doesn't matter what you paid, only what it would sell for today. If it depreciated you could be making large payments on a worthless property, or the opposite and you are sitting on a gold mine. Mortgage payments don't tell either story.

Rent should be proportional to its current value, not the purchase price or anything else. This is math, leave all feelings and stories behind ;)

I'm always inclined to simplify and live life. Sometimes working harder now makes life a lot simpler later.