Hello! I am completely new to this forum. We are 98% sure on cashing out a real estate investment property. We will have a nice payout. We are considering paying down our primary house mortgage. Our primary house is a two family home,we live in one unit and rent out the other to family. Current mortgage 350K left at 3.95%. We likely would recast to 150K same interest rate. Payment around $750 + $720 taxes, we receive $1100/month rent (way under market). We are in a VHCOL that has seen great leaps in real estate and continues to Trend upwards. Current market value on our 2 family is 1.7m.
We would have approximately 100-150K left over after paying down mortgage. We would invest although we are so new to this I am not sure in what vehicle. Paying down our mortgage would allow us to max out both roths easily and leave us with a nice monthly snowball to toss on top of our newly investment money, or a 403(b)/457 plan. We live a frugal lifestyle, have 3 young children.
Suggestions? Awful idea to pay down mortgage? Invest it all? Pay off the mortgage completely? Should we do a 180 and keep the rental (market is bonkers right now, but the area it is in still has lots of growth potential)? So many questions, please help a newbie out.
