I recently discovered this blog and have been hooked over the past couple days! What a great community with everyone being so supportive! I wanted to just go over my financial situation, and get any thoughts/suggestions to get to that goal of FI.
The basics:
I am a single 28 year old with no debt other than a mortgage I work in sales and have made around $120k/yr for the past 4 years and 60-80k for the first couple working years.
My primary residence is worth around 360k and I owe around $260k. I have owned this for 2 years.
I also own a duplex that I lived in for one year and have since rented both units. This property is worth around $425k and I owe around $260k. My rental income is $2,400 per month and payment with taxes and insurance is $1,650.
My company is great and pays for my vehicle and gas, so I do not have any expense there.
I just started my 401K this year and have $110k in taxable investments. My checking account currently has $30,000.
I automatically have $2,000 each month going directly into index funds and 3% of salary into 401k (to at least get the full match). My first few years of working i was working towards down payments, so most of my money has gone towards the two properties. At the end of the year, everything over $10,000 left in my checking account, I will put into the investments. I like to wait until the end of the year to evaluate everything before I put the excess cash in there.
I typically can save $40,000-$50,000 a year. I would say I am also spending too much right now on unnecessary things, and plan to cut back some.
Do you fellow mustachians have any suggestions or advice to simply my situation. Home equity line on one property to pay off the other in the future or just keep paying towards both? I have rates under 4% on both. Best use of excess cash at the end of the year? Should I apply that to pay down the rental property instead of putting into mutual funds?
Thanks so much for any input!!