Author Topic: Newbie getting starting advice  (Read 1092 times)

RunningMan3

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Newbie getting starting advice
« on: April 14, 2019, 10:46:13 AM »
Im new to the MrMoneyMustache Blog, and the more I read the more intrigued and interested I am. I want to start some of the principles outlined here, but am a little unsure on where and what to do to start. Heres some basics, and Id appreciate any advice.

I am 39 years old, married, with three small children - 6, 3, and 1 year old. I work full time making $70,000 per year. My wife (37 years old) is a teacher, and makes $50,000 per year. However, she feels like she needs to get off the crazy working mom merry go round, so we decided that she will stay home for a year or two, to spend more time with the kids when they are this small. We will be living on one income starting in September, and are prepared to start to slim down our spending on non-essential costs.

We currently have a mortgage, a rental property mortgage, and a car loan, but otherwise have no debts. I make $70,000 per year, and contribute up to the company match (5%) to my 401k. I stopped contributing to my Roth to prepare for my wifes leave of absence. We currently have two capital one 360 savings account with $7,000 that we use for extra unexpected expenses, and have $28,000 in an emergency fund, both making minimal interest (1%ish). I also contribute to a FSA for childcare costs.

Current Expenses:
Mortgage: 3.6% interest, & HELOC: 7.49% interest with a $31,000 balance - $2,800 per month
Car Loan: 1.9% interest, $14,500 balance, $500 per month
Other Living Expenses (food, internet, insurance, etc) - $1,800 per month (expecting to cut some costs in September)

Income:
Work Salary Net (After 401k contribution & FSA deposit): $70,000 annual
Rental property: $1,700 annual

Savings/Retirement:
Capital One Savings: $35,000
401K: $85,000
Roth IRA (Target date retirement funds) : $128,000
Wifes pension
College 529s: $7,000

While we think we are generally doing well, wed like to be making the best money decisions. Should we move some of our capital one 360 savings to an index fund, to get a better return and interest rate? Should we focus any extra money on paying down our mortgage or car loan? Whats the best place to start to have our money work the best for us? Do you have any additional advice?

englishteacheralex

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Re: Newbie getting starting advice
« Reply #1 on: April 14, 2019, 11:04:09 AM »
My opinions in red. Note: they are opinions! You get what you pay for with them.

Im new to the MrMoneyMustache Blog, and the more I read the more intrigued and interested I am. I want to start some of the principles outlined here, but am a little unsure on where and what to do to start. Heres some basics, and Id appreciate any advice.

I am 39 years old, married, with three small children - 6, 3, and 1 year old. That's intense. I have a 4 year old and a 2 year old. Respect.I work full time making $70,000 per year. My wife (37 years old) is a teacher, and makes $50,000 per year. However, she feels like she needs to get off the crazy working mom merry go round Totally get it. I'm a teacher and my husband works, too. No joke to have two full time parents with small children., so we decided that she will stay home for a year or two, to spend more time with the kids when they are this small. We will be living on one income starting in September, and are prepared to start to slim down our spending on non-essential costs. Got it. Sounds like a plan.

We currently have a mortgage, a rental property mortgage, and a car loan, but otherwise have no debts That is a fuckton of debts.. I make $70,000 per year, and contribute up to the company match (5%) to my 401k. I stopped contributing to my Roth to prepare for my wifes leave of absence. We currently have two capital one 360 savings account with $7,000 that we use for extra unexpected expenses, and have $28,000 in an emergency fund, both making minimal interest (1%ish) That sounds like the minimum amount I'd be comfortable with as an emergency fund in your situation. I would not move that into anything more risky. Leave it in savings.. I also contribute to a FSA for childcare costs.Will that go away once wife stays home?

Current Expenses:
Mortgage: 3.6% interest, & HELOC: 7.49% interest with a $31,000 balance - $2,800 per month This is horrible. Insane. My husband and I take home ~$150k/year and our monthly housing is $2200, and I glare at that line item in our budget.
Car Loan: 1.9% interest, $14,500 balance, $500 per month Good God a car loan. Oh no. $500/month. You have to be kidding me.
Other Living Expenses (food, internet, insurance, etc) - $1,800 per month (expecting to cut some costs in September) Can't help you with any of this if it's not carefully separated into line items. Track your spending and start drilling down on this stuff. $1800/month overhead after housing/car with three kids seems very reasonable, but again, if it's not separated into categories there's not much we can help you with.

Income:
Work Salary Net (After 401k contribution & FSA deposit): $70,000 annual
Rental property: $1,700 annual I'm not a real estate expert but I've read a couple of books and lurked around these forums a bit. This rental seems pointless. Can you sell it and get rid of some of the HELOC/Car debt?

Savings/Retirement:
Capital One Savings: $35,000
401K: $85,000
Roth IRA (Target date retirement funds) : $128,000
Wifes pension
College 529s: $7,000

Not bad!

While we think we are generally doing well, wed like to be making the best money decisions. Should we move some of our capital one 360 savings to an index fund, to get a better return and interest rate? I wouldn't. You have a fuckton of debt and you're talking about going down to one income with three small kids.Should we focus any extra money on paying down our mortgage or car loan? Mortgage no, HELOC and car loan yes.Whats the best place to start to have our money work the best for us? Do you have any additional advice?


If it were me, I'd sell the car ASAP and buy a beater in cash. Cars suck. This is the MMM forum, so I don't feel out of line telling you that. A point of pride around here is to have cars worth as small a percentage of your net worth as possible. Our net worth is $340k and our cars' combined worth is $7k.

The HELOC and the rental seem unnecessary, as I already said. I'd clean those up.

Start tracking your spending on the $1800/month.

I'm a fan of the large cash cushion emergency fund. Personally, I'd keep it, especially in your position.

Good luck! Keep reading! The MMM forums have helped me a lot over the years.

Montecarlo

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Re: Newbie getting starting advice
« Reply #2 on: April 14, 2019, 11:04:41 AM »
How safe is your job and how good is your disability insurance.

My philosophy on stock exposure:
  • higher the chance of job loss, the less exposure to stocks
  • more dependent on job income, the less exposure to stocks

In other words, the closer to financial independance or the safer the job, the more exposure to stocks.

The last thing I would want to happen is to lose a job in a recession and be forced to liquidate stocks during a bear market.

However, that does come with a cost.  Even in a recession the average worker has a 90%+ chance of keeping their job.  Some people would argue avoiding exposure to stocks to avoid a low probability risk is a mistake.

RunningMan3

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Re: Newbie getting starting advice
« Reply #3 on: April 14, 2019, 11:20:51 AM »
My opinions in red. Note: they are opinions! You get what you pay for with them.

Im new to the MrMoneyMustache Blog, and the more I read the more intrigued and interested I am. I want to start some of the principles outlined here, but am a little unsure on where and what to do to start. Heres some basics, and Id appreciate any advice.

I am 39 years old, married, with three small children - 6, 3, and 1 year old. That's intense. I have a 4 year old and a 2 year old. Respect.I work full time making $70,000 per year. My wife (37 years old) is a teacher, and makes $50,000 per year. However, she feels like she needs to get off the crazy working mom merry go round Totally get it. I'm a teacher and my husband works, too. No joke to have two full time parents with small children., so we decided that she will stay home for a year or two, to spend more time with the kids when they are this small. We will be living on one income starting in September, and are prepared to start to slim down our spending on non-essential costs. Got it. Sounds like a plan.

We currently have a mortgage, a rental property mortgage, and a car loan, but otherwise have no debts That is a fuckton of debts.. I make $70,000 per year, and contribute up to the company match (5%) to my 401k. I stopped contributing to my Roth to prepare for my wifes leave of absence. We currently have two capital one 360 savings account with $7,000 that we use for extra unexpected expenses, and have $28,000 in an emergency fund, both making minimal interest (1%ish) That sounds like the minimum amount I'd be comfortable with as an emergency fund in your situation. I would not move that into anything more risky. Leave it in savings.. I also contribute to a FSA for childcare costs.Will that go away once wife stays home?

Current Expenses:
Mortgage: 3.6% interest, & HELOC: 7.49% interest with a $31,000 balance - $2,800 per month This is horrible. Insane. My husband and I take home ~$150k/year and our monthly housing is $2200, and I glare at that line item in our budget.
Car Loan: 1.9% interest, $14,500 balance, $500 per month Good God a car loan. Oh no. $500/month. You have to be kidding me.
Other Living Expenses (food, internet, insurance, etc) - $1,800 per month (expecting to cut some costs in September) Can't help you with any of this if it's not carefully separated into line items. Track your spending and start drilling down on this stuff. $1800/month overhead after housing/car with three kids seems very reasonable, but again, if it's not separated into categories there's not much we can help you with.

Income:
Work Salary Net (After 401k contribution & FSA deposit): $70,000 annual
Rental property: $1,700 annual I'm not a real estate expert but I've read a couple of books and lurked around these forums a bit. This rental seems pointless. Can you sell it and get rid of some of the HELOC/Car debt?

Savings/Retirement:
Capital One Savings: $35,000
401K: $85,000
Roth IRA (Target date retirement funds) : $128,000
Wifes pension
College 529s: $7,000

Not bad!

While we think we are generally doing well, wed like to be making the best money decisions. Should we move some of our capital one 360 savings to an index fund, to get a better return and interest rate? I wouldn't. You have a fuckton of debt and you're talking about going down to one income with three small kids.Should we focus any extra money on paying down our mortgage or car loan? Mortgage no, HELOC and car loan yes.Whats the best place to start to have our money work the best for us? Do you have any additional advice?


If it were me, I'd sell the car ASAP and buy a beater in cash. Cars suck. This is the MMM forum, so I don't feel out of line telling you that. A point of pride around here is to have cars worth as small a percentage of your net worth as possible. Our net worth is $340k and our cars' combined worth is $7k.

The HELOC and the rental seem unnecessary, as I already said. I'd clean those up.

Start tracking your spending on the $1800/month.

I'm a fan of the large cash cushion emergency fund. Personally, I'd keep it, especially in your position.

Good luck! Keep reading! The MMM forums have helped me a lot over the years.

I'm sorry. I didn't make it clear in the post. I combined our primary mortgage and rental mortgage into one line item.
Primary mortgage with HELOC: $2,139
Rental mortgage: $740

We have had very stable and excellent renters for the past 3 years. They have hinted that 2019 is their last year of renting with us. Once they are out of the property, we will plan to sell it.

I am already tracking all our daily expenses. I will post our daily expense line items separately in this post.

rubybeth

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Re: Newbie getting starting advice
« Reply #4 on: April 14, 2019, 11:57:28 AM »
I'd prioritize paying off the HELOC and then the car. The car interest rate is low but I'm guessing it was a newer vehicle? Driving older, reliable vehicles with no car loan is the name of the game since they cost less up front and less to register and insure, saving you thousands in the life of the vehicle. Once that vehicle is paid off, start budgeting for a replacement each month. You might find it useful to use a budgeting tool like https://www.youneedabudget.com/ to see where you can cut budget items. You can google for 3-4 month trials of YNAB.

I'd definitely prepare to sell the rental and put any profit primarily toward debt. I wouldn't pay off your primary mortgage early, instead put more toward savings/investments.

RunningMan3

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Re: Newbie getting starting advice
« Reply #5 on: April 14, 2019, 12:11:00 PM »
Thanks for the advice and feedback. To answer the other questions...The FSA will stay for 2019. We will plan to not renew the FSA in 2020. My 3 year old will still attend paid pre-school 2 days per week while my wife is on her leave of absence. My line of work is in IT.

Here are our monthly expenses:
-Rental Mortgage: $740 ***Rent paid at $1,100/month
-Rental Association fees: $210
-Primary mortgage & HELOC: $2,139
-Electric - $110
-Internet - $0 (work reimbursement)
-Home Gas: $100
-Water: $60
-Rental Home Insurance: $22
-Primary Home Instance: (Paid by mortgage)
-Auto insurance: $129 (07 Honda CRV, 2016 Honda Odyssey)
-Life insurance for wife and I (Term):  $112
-Day care: $1,041 (MIL watches 1yr old full time and 3yr old part time)
***Day care costs will go down to $200/month for part-time pre-school starting in September.
-Cell phone: $40-$50 (work reimbursement for my half) *Wife is using Ting
-Car payment: $513
-Amazon Prime: $10 ($119 annual)
-Cable TV: $0 (cut the cord over 5 yrs ago)
-Netflix: $12 (recently increased)
-YouTube Red/Google Play Music: $10
-Groceries: $600-$700
-Dinners/eating out: $100
-Target/Amazon/Other: $250
-Kids haircuts: $30
-Kids supplies/activities: $100
-Clothing: $100
-Car Gas: $150-$170
***Will decrease once wife goes on leave of absence
Total (Roughly): $5,598
Total (Roughly After wife LOA): $4,487






seemsright

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Re: Newbie getting starting advice
« Reply #6 on: April 14, 2019, 01:07:52 PM »
3 kids...you are a are a magical unicorn!

Your debt is mostly doable. But your car loan is iffy to me, and it may be the time to figure out what your priorities are and make the best call now.. With 3 kids costs can go very high very fast esp when they become teenagers. If time is the priority it is may be important to really sit down with your wife and figure out a complete picture.

But I am going to note a few idea to keep in mind. I stay at home and we have a almost 9 year old.

Your wife will need some burn money to stay sane! If that is enough cash to grab a cup of coffee or lunch out once in a while to get away from the house.

Your utilities will go up since your family will be home.

Your cost for hand soap and toilet paper will go up as your family will be home during the day.

You may need to budget more for auto gas because your wife will drive more to those free toddler/preschool activities that are around. She may need parking change.


FIRE 20/20

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Re: Newbie getting starting advice
« Reply #7 on: April 14, 2019, 01:46:20 PM »
It seems as though you've made some good decisions (resulting in about a quarter million in savings) and some bad ones (new minivan, apparently expensive housing), and some questionable ones (renal property). 

The question now is about priorities.  You can probably continue on your current path and be ok.  Your savings will grow, you'll pay off the house, and things will probably turn out better for you than for most people.  Or, you can make some potentially difficult changes that could give you significant financial freedom.  Here's what I would do:

1.  Assess the rental property's true value as an investment.  There is a subforum here for real estate.  It might be a really valuable property that will be a long-term benefit, or it might be an albatross that holds you back from reaching your goals.  I can't help with this other than suggesting that this is the first thing I'd do because it's just a bit of research and some calculations. 
2.  I second the recommendation for YNAB or something similar.  I don't see rental house maintenance, primary house maintenance, car maintenance, medical/dental costs, travel, or a bunch of other typical categories for spending.  It looks to me like you have a fantasy budget.  I don't mean that as an insult - I intend it to drive the point home.  The only way to get a real budget is to track spending for at least 6 months and preferably a full year.  There are a lot of things that just pop up - new tires for the car, ER visit, etc. - that bust this kind of budget. 

Those two should be easy, although they take some time.  I think they are mandatory regardless of your goals.  The following are necessary if you want to optimize or FIRE.

3.  Evaluate the need for the two cars.  I'm guessing that the Odyssey is going to be mom's car so she can shuttle the kids around - is that correct?  If so can you downsize the CRV?  It's old enough that the savings might not make sense, but you might save on fuel and insurance costs by switching.  Are you (is she) willing to sell the Odyssey to get something older?  You might not only be able to pay down some debt but might also be able to save on insurance and vehicle licensing fees.  Those fees are often much higher for newer vehicles, and are often left out of calculations about the cost of operating a newer vehicle.  Can you bike to work?
4.  It seems like there's a disconnect in your salary and your housing expenses.  Are you in a HCOL area (so your salary appears low for IT) or are you in a LCOL area where your housing costs are insanely high for the market?  It seems like you might need to fix one or the other - get a raise if you're underpaid or lower your housing costs (or both!). 

If you want to race to FIRE, then i think you need to figure out whether the rental is helping or hurting, figure out your real budget, reduce your car-related expenses, optimize your housing situation to lower that monthly cost, and look into higher paid work.  However, racing to FIRE might not be a priority.  If selling the Odyssey is going to cause marital strife and you're ok working longer to avoid that fight - don't bring it up! Similarly if you love where you live and are ok trading your future working years to live where you are, that's just a priority decision you have to make. 

RunningMan3

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Re: Newbie getting starting advice
« Reply #8 on: April 14, 2019, 02:09:48 PM »
Thanks everyone. This advice has been eye opening and gives us a lot to consider. I bought our current rental property in 2004 when the housing market was high. When the housing market crashed, the property went under water. When my wife and I got married and were expecting, we decided to upgrade to a house with our first born and rent the property in 2013. We have been fortunate with good renters. Now that the market has rebounded, selling is definitely under consideration. Our renters love the property and just renewed for another year. We are happy to have them help us pay down the mortgage until they are ready to upgrade themselves. When that happens we are planning on selling. We now have about $20K of equity on the rental.

iluvzbeach

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Re: Newbie getting starting advice
« Reply #9 on: April 14, 2019, 02:17:13 PM »
Is there any chance youd consider moving back into the rental and selling the house youre currently living in? This would make a huge difference in your monthly cash flow and potentially allow your wife to stay home longer or reduce hours when she goes back to work, all while making more progress toward your financial goals.

former player

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Re: Newbie getting starting advice
« Reply #10 on: April 14, 2019, 03:21:06 PM »
Does the recent renewal on the rental mean that you can't sell it for almost another year?

As a distinctly amateur landlord myself, I think 1) your margin of income over expenses is far too small for comfort, and 2) your decision to sell must be at your convenience, not your renters - don't loose money by giving your tenants anything they are not legally entitled to.  (Yes I know, that sounds harsh.  But you are not a charity, and your tenants will be able to find something else if they have to.)

feelingroovy

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Re: Newbie getting starting advice
« Reply #11 on: April 14, 2019, 05:18:25 PM »
First, you are definitely doing great.

I agree about the rental. It doesn't sound like a great investment property. Sure you may not lose anything on it but you could better optimize the ROI on that 20k.

An idea for the emergency fund: use a small part of  it to fill out your Roth for the year. If you want it in cash go ahead and just allocate it to a money market fund. But you won't lose out on the year's contribution. And if you do have an emergency you can pull out contributions without penalty.

I agree with asking yourself hard questions about the cars.

What was the purpose of the heloc? That is the one debt I would target.

RunningMan3

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Re: Newbie getting starting advice
« Reply #12 on: April 14, 2019, 09:55:35 PM »
@feelingroovy My responses have *** in front.
I agree about the rental. It doesn't sound like a great investment property. Sure you may not lose anything on it but you could better optimize the ROI on that 20k.
***Keep in mind, after all the fees (taxes, closing costs, title expense, realtor commission), I'm only looking at a net of $3-$5K. I'm ok with a stable renter for now. We are planning on selling in 2020 after all the advice. 

An idea for the emergency fund: use a small part of  it to fill out your Roth for the year. If you want it in cash go ahead and just allocate it to a money market fund. But you won't lose out on the year's contribution. And if you do have an emergency you can pull out contributions without penalty.
***Love this idea. I'm definitely going to consider this, it makes a lot of sense.

I agree with asking yourself hard questions about the cars.
***We now know we made a mistake with purchasing the new mini-van. With 3 young kids we just wanted to make sure to have a reliable car so we bought new. We have both kept cars until they die. We got my '07 CR-V for free from my SIL and didn't put enough thought into the mini-van purchase. We now see the error in our ways. I'm going to drive the CR-V until it dies as it's been a solid car and extremely reliable. It's a hard road to convince my wife to sell the new mini-van at this point.

What was the purpose of the heloc? That is the one debt I would target.
***If I remember right, I think we got the HELOC so we didn't have to pay as much PMI and didn't require as much of a down payment when we bought the house.

feelingroovy

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Re: Newbie getting starting advice
« Reply #13 on: April 15, 2019, 07:53:28 PM »
No judgement on the minivan. I did the same thing in 2012. Bought my one and only new car. Only car loan we've ever had. It came as a reaction to sinking a ton of money into repairs of cheap cars in a row. Was just sick of unreliable cars and We too had small kid.

But I realized I didn't like driving a new car. I didn't like paying the loan payments and I was nervous about it getting scratched and stained. It got terrible gas mileage. And 6 months later I found MMM.

So we sold it for $1500 more than we owed a year after buying it. Bought a 5 yo Prius instead. We still needed a loan but payments were half. I still have it.

Anyway I can't say if you should push that if your wife loves it. But it is an option to cut. Could you give her the crv?

Kayad

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Re: Newbie getting starting advice
« Reply #14 on: April 15, 2019, 10:13:14 PM »
I would strongly consider using your cash savings to pay off the HELOC, unless you have serious job security concerns.  That is a very high interest rate.  Consider your Roth your alternative e-fund until you have rebuilt your cash.  If zeroing out your cash reserves makes you nervous, keep just 10k.  Alternatively, check if you can borrow from your 401k at a comparable rate (because then you are at least paying yourself the interest).

It doesnt make sense that the heloc was to avoid pmi-you need equity to obtain a heloc.  Slightly concerned that you dont know the origin of your debt...

You can easily find a savings or money market account that pays 2%+, a percent more is a few hundred dollars/year with that much cash.

Good Luck!

RunningMan3

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Re: Newbie getting starting advice
« Reply #15 on: April 16, 2019, 07:15:26 PM »
@feelingroovy Not a bad suggestion to give the CRV to my wife. However, we can't fit 3 car seats in a row in the back of the CRV. We would have look into buying all new car seats. Or, we could wait until my 6 year old can start wearing a regular seat belt. By that time though, the mini van will be paid off. Maybe we could find smaller car seats that would fit. I just kinda cringe though with three young boys in the back seat on our 6 hour drive to visit with family out of state. I don't know, yes we made a mistake on the mini van, but we really are not that far from paying it off either. A lot to think about.

RunningMan3

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Re: Newbie getting starting advice
« Reply #16 on: April 16, 2019, 07:22:20 PM »
@Kayad Can you make a stronger case on why we should empty our savings to pay off the HELOC? With my wife going on LOA for a year, that doesn't seem smart at the moment. I've never heard anyone recommend to borrow from my 401K and always thought that would always be a mistake. My plan was to pay an extra $500 per month towards the HELOC until it's paid off sometime in 2022. I'm going to look at transferring our emergency money from the Capital One 360 savings account to a money market account. I don't know much about money market account other than you need a $10K minimum balance. I'm also debating whether it's worth the hassle to transfer out of Capital One 360 savings to Ally Bank savings accounts to get the 2% interest.

fuzzy math

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Re: Newbie getting starting advice
« Reply #17 on: April 16, 2019, 07:56:52 PM »
Keep the minivan. I have 3 kids, now 12, 9 and 7. Your ears will bleed if they can touch each other during a 6 HR drive.

The HELOC is fairly similar to the extra $$ you are holding on to as a buffer. Why not pay it off, then make it a game to not charge up the HELOC again.

Don't lose your FSA money. I"d say this is a huge consideration. Read into the rules the year before your DW quits her job.

Quit contributing to a ROTH and look into filling up more space in your 401k

RunningMan3

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Re: Newbie getting starting advice
« Reply #18 on: April 16, 2019, 08:36:23 PM »
@fuzzy math @Kayad Thank you for your advice. After your comments, my wife and I decided to go forward with putting $20K towards the HELOC and then then paying an extra $500/month until it's paid of in August 2020. Looks like we are going to save $80K in interest according to Dave Ramsey's loan calculator. My wife and I really appreciate everyone's advice on this thread. Lots of great ideas that have lead to many in depth money talks. Very glad to have found this forum going forward to not make future money mistakes (car loan).

fuzzy math

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Re: Newbie getting starting advice
« Reply #19 on: April 17, 2019, 07:15:39 AM »
As long as you drive your Odyssey into the dirt it won't have been a mistake. I'm at 92k miles on my 2011 and hoping it will last until after the kids leave the nest.

acepedro45

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Re: Newbie getting starting advice
« Reply #20 on: April 17, 2019, 08:04:43 AM »
I think your rental is almost certainly a total loser. You are taking in 1100 in rent monthly, but turning around and spending 740 on the mortgage and 210 on the monthly HOA costs. That nets you 150 a month, plus the tiny sliver of equity you have gets a little bit bigger. 

150 * 12 = 1800 in annual "profit." (You have 1,700 listed as annual rental income listed elsewhere, not sure of your calc). I have profit in quotation marks because it doesn't include any provision for utilities, maintenance, the hassle of running the place or any allowance if the place goes vacant for a couple months.

A couple of people have suggested that you read up in the landlording subforum and take a hard look at the rental. Seconded.

RunningMan3

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Re: Newbie getting starting advice
« Reply #21 on: April 17, 2019, 12:23:49 PM »
@acepedro45 Yes, My wife and I have already concluded the rental needs to go away after all the advice from this thread. Yes, bad math it's $1,800 annual profit plus some very minimal tax returns. The market for the area just recently rebounded. We have been under water in the mortgage until just last year. If I really think about it, we were smart to keep it and have renters pay our mortgage down until we could get out of water. I certainly don't want to pay high 5 digits numbers to sell the unit. It was my first home purchase when I was 24. When my wife and I started having kids, we needed to upgrade and move to a better school district. The rental lease expires in March of 2020. We will prepare the sell the loser rental then.