Author Topic: It just hit me today.... I might be able to retire.  (Read 1964 times)

medinaj2160

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It just hit me today.... I might be able to retire.
« on: September 02, 2017, 03:42:25 PM »
Yesterday we rented our first rental property that I spent 8 months getting renovated. This morning I got curious and looked at the rental values of our primary residence and I was surprised to find out that is a significant amount.

Here are the numbers:

Primary residence potential rental: $1800 per month
Rental Property: $1200 per month
Investments 401k/IRA's/After tax: $300,000 or $1000 per month

So after rental expenses I think we could have a monthly income of $3300 or $39,600 per year.

Our primary residence is paid off and the rental can be paid off after selling some personal property. So we would be 100% debt free.

We have a 2 year old and one boy on the way. We can find rental around $1000 per month away from the city. $2300 is sufficient for our expenses. Another option could be going over seas where the money would go way farther.

What do you guys think?

slappy

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Re: It just hit me today.... I might be able to retire.
« Reply #1 on: September 02, 2017, 04:15:52 PM »
Post a case study! :)

FINate

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Re: It just hit me today.... I might be able to retire.
« Reply #2 on: September 02, 2017, 04:16:47 PM »
Are the rental values you provided gross or net? E.g. do they include taxes, maintenance, vacancies, insurance, and such?

Are you old enough to withdraw from your retirement accounts without incurring the 10% penalty?

Will $2300/month continue to be sufficient once the second child arrives?

medinaj2160

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Re: It just hit me today.... I might be able to retire.
« Reply #3 on: September 02, 2017, 04:58:38 PM »
Are the rental values you provided gross or net? E.g. do they include taxes, maintenance, vacancies, insurance, and such?

Are you old enough to withdraw from your retirement accounts without incurring the 10% penalty?

Will $2300/month continue to be sufficient once the second child arrives?

The values are gross but I am assuming that $700 per month will cover all rental related expenses.

I am 32 so I will have to star rolling over our 401k's and use the after tax money in the mean time.

I think $2300 per month will be sufficient

I will post a case of study soon.

Thanks

AccidentalMiser

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Re: It just hit me today.... I might be able to retire.
« Reply #4 on: September 02, 2017, 06:53:37 PM »
We need a lot more information to be able to provide serious advice.  Looking forward to your case study.

Khan

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Re: It just hit me today.... I might be able to retire.
« Reply #5 on: September 02, 2017, 09:49:12 PM »
I think you need to fully evaluate your primary as a rental proposition. Does it gross 1%+ a month compared to real estate value? Account for vacancies, maintenance, and all that other fun stuff too...