Hi folks! Wondering if anyone has a quick and dirty suggestion on how to incorporate relatively illiquid assets into a time to FI calculation?
Because I'm relatively "house rich, cash poor" in San Francisco, basically, I calculate that I can reach FI in about 5 years based on existing cashflows and predicted FI annual spending.
However, I've been playing with 'cheating' and adding home equity to the equation. I mean, I know I could just cash out and invest the capital gains in the market (I'm not planning to buy another primary home, other than something in a very inexpensive market), but economically it looks way better to hold on to the house, even though renting it out wouldn't yield enough cash flows to easily reach FI much sooner than 4-5 years. I could always do a cash-out re-fi or get a HELOC to bolster "retirement" spending, but that seems un-mustachian.
Any ideas?