Quick introductionI am 36 years old, and my wife is 31. No kids at the moment but we are actively trying to start a family. We live in a paid off home.
Here is our current net worth -
https://imgur.com/a/0dd4XmIOur AGI last year is $90630, our taxable income is $66,630. We are making out the following accounts:
- 401k
- Roth IRA
- My HSA
The planI want to move out of my 4 bedroom home, and live in a 2 bedroom apartment, and rent out my home.
The idea here is that I will diversify my income, and I will work towards creating a life where I don’t have to work for money. If I move into a two bedroom apartment, the rent from my house will cover our basic living expenses (food, clothing, shelter, transportation). The rest of the expenses can be covered with my wife’s income, and my income will be untouched.
By renting out my place, I expect to be making around $1500 per month, or $1350 per month if I went with a property management company. I will be paying around $800 in rent for a two bedroom apartment in my area.
These are my goals -
1. Reach a net worth of $1 million ASAP
2. Live with a passive income stream which will allow us to travel
3. Start a family
4. Travel and take more vacations, enjoy life.
Is this a good idea? Does anyone here have any experience doing something like this? I am concerned about raising a child in a two bedroom apartment, simply because there won’t be a dedicated room for a child because the second bedroom will have to serve as an office. I did not have a room for myself growing up, so I don’t think it's a big deal, but I am wondering what the downsides are with limited space.
Any other feedback on this will be much appreciated.