Hi - I was a long time Dave Ramsey fan, but was just recently introduced to FIRE and MMM. I'm still reading the blog archives and I'm both overwhelmed and delighted.
I have a condo that is worth about $130,000 and I owe $53,000 at 3.5%. This is my only debt. I lived it in for about three years and moved a year ago due to a job change/shorter commute. The condo is in a great community, and is not fancy but I upgraded a lot of foundation stuff (new HVAC, new hot water heater, new carpet, new garbage disposal, new washer, paint, etc.). I rent it out for $875 per month and after fees, property management, mortgage, taxes, etc. I make about $230 monthly cash flow.
I rent an apartment for $975. I tried to get my equity out of the condo enough to make a down, but because it is a rental I can't access very much. So I was going to sell the condo and use the cash I have on hand to buy something free and clear. It would be tight, involve downsizing, and I may have to use a little credit, but nothing like a 30 year mortgage.
I was ok with this plan until someone I really respect said to keep the rental. I'd love to get input from Mustachians and perhaps perspective from others who are further down this road. Should I keep it and keep paying high rent until I can put enough down to have a smaller payment? Or would you vote mortgage free and the freedom that brings? I make about $75,000 per year and mortgage free would move me through to FIRE at a good pace, I think, and I would feel financially independent at having such a low cost of living.
Thanks.