What to do with an extra $2000 a month

[crucialink]

My question is I am paying off my mortgage in a couple months, which will free up $2,000 a month. I am not sure if I should take that $2000 (get a mortgage for 180,000) and buy a condo and rent it out in Florida, put the $2000 into a vanguard REIT or just put it into my vanguard VTSAX. Any suggestions?

[neo von retorch]

You may have already thought of this / included it in your calculations, but is it "actually" $2000, i.e. the P&I payment was $2000, and you have your tax/insurance costs separated?

[tomsang]

We need more information on your entire balance sheet, the details of the rental, etc.  Plans for retirement, need for liquidity before tapping old man money, overall plan.

Sounds like fun

[usmarine1975]

If you have paid off your own home, I would be less likely to secure a new loan with it.  Getting a mortgage on the Condo would be the way I would go.  Not that you would lose it but why risk your personal residence for a business venture.  I have a friend that built his home with no debt.  He then decided to buy a business with a partner using his home to secure the loan.  The business went belly up and he is now stuck with a mortgage on his own home that he built without debt.  That payment has got to suck for him.

[frugaliknowit]

Mortgaging a condo (especially far from where you live) and renting it out sounds like a potential train wreck.

We need more information about your balance sheet, career, risk tolerance, and aspirations.

[Thegoblinchief]

1. Are you maxing your 401(k) or other pretax retirement accounts? If no, do this.

2. Do you have a HDHP? If so, shovel the max into the lowest fee HSA you can find.

3. Are you eligible for a Roth? If so, shovel the max.

Still money left over? THEN you can consider real estate versus taxable investing. The tax advantages of the accounts above radically increase their compounding power.

[dividendman]

Have you considered booze and hookers?

If that's out of the question... do you like your job? Now might be a good time to look around for part time or lower paying (or higher paying!) work you might like.