Income:
5,723 (DH's salary, includes 401k contributions)
1,250 (rent from a rental property)
Total: 6,973
Current expenses:
401k contributions: 425 (currently set up at 6% to come out b-4 taxes, plus 3% employer match)
Charitable donations: 578
Mortgage on primary residence: 1,519 (includes taxes and insurance)
Mortgage on rental: 840 (included taxes and insurance)
Gas: 220 (includes DH's public transportation monthly pass)
Groceries: 250 (for 7 people)
Utilities: 300
Car insurance: 55
Miscellaneous spending: 304 (includes dates, entertainment and spending money)
Total: 4,349
Note: this leaves us with a difference of 2,500/month which we have just been putting into savings.
Assets:
401k: 47,651
ROTH IRA: 14,000
Rental property equity: 70,000 (this is an estimate which of course depends on the market, but it's pretty close)
Primary residence equity: 60,000 (of course an estimate but I don't care what the value is until/unless I sell my house)
1995 Ford Taurus: $5 maybe
2001 Chrysler Town and Country: $1,000 (I suppose)
Total: 192,656
Liabilities:
Rental mortgage: 130K @4.75%
Primary residence mortgage: 255K @4.15%
Specific Question(s): Providing a detailed breakdown is important, so is asking for specific information so we know what kind of help/advice you are looking for.
DH and I have a rental house that is our previous primary residence. We would've sold it b-4 moving but the market just wasn't what we wanted it to be so we decided to rent it out for a couple of years until we could get what we want out of it. Now that we should be able to sell for what we want we're thinking about selling mostly because it's 33 miles 1 way from our new home to the rental and driving out there to do showings and make repairs is a pain. Plus up until I discovered this blog and realized that early retirement is now a possibility for us our only plan for what to do with the funds from selling the house was to use it to pay down the mortgage on our house. But we do want to have a rental or 2 in retirement for some income, so this has me wondering. Should we keep the house (it has a pretty good earnings and I don't if something closer would earn as much)? Should we sell it and put the money into a mutual fund? Should we sell and use the $ to buy 2 new rentals? Or should we put the money towards paying down our mortgage? We are planning on having our mortgage paid off by the time we retire, but I keep thinking maybe it'd be better to put money into retirement than into the house for the time being. When I start working in a couple of years I should be able to earn enough to pay off the house b-4 we retire.
Did I miss any details? What do you all think?
