First post, found this website last week and cant believe how badass it is. I'm 26 and bought my first home in the peak of 07. Two years ago I decided it would be best to rent out the home and found myself a nice small MIL apartment I currently rent which is closer to work.
The home is worth 150ish and I owe 204k(30yr at 3.750%). I have plenty of extra money to make additional payments to the mortgage each month but am curious if that's the right thing to do? I do plan on eventually moving back in about 4-5 years. Should I pay down the mortgage between $5-700 a month or choose to invest that in something else while the renter is covering my mortgage payment?
Here is a list of my financial situation:
Income
76,500 ( Base pay, Last year including OT was 127k but on average around 94ish)
Take home: 3,380 (20% taken out for company 401k, matches 50% on first 8%)
Rent Income: 1,300
Expense
Mortgage: 1,300
Rent & everything else: 1,900
Saving:
401k: 57k
Roth IRA: 11k
Prosper: 5k
Capital one 360 savings: 35k (will get this money working for me soon, was planning on another home but now it will go toward index fund)
Debt: ZERO
2009 Acura TSX paid for in cash, will last at least 10-15 years.