I think I included all information. Please ask for any clarification and thank you in advance for any advice!
Info: Married filing jointly, both age 31
Gross Income: Myself 44k, Mr.OSD 42k
Savings: Myself pretax 401k is 5,500/yr, company matches 2,500/yr. Mr. OSD pretax 401k 6,500/yr, company matches 1,700k/yr, also 7k/yr into HSA. TOTAL pre-tax 23,200/yr
Rentals: 3 buildings, 7 units (one single family, one duplex, one 4 unit) total income 47k, expected expenses including repairs and vacancy brings us to a net of 36k. Depreciation is around 8k. We do all the work ourselves.
AGI: 112k
Taxes: last year we owed 1,000 at the end of the yr (700 federal and 300 state). It gets complicated b/c I have bonuses come in that have higher taxation that offsets the fact that we don't pay income tax throughout the year on the rentals. Usually we expect to owe about 1,000-1,250 every year all in with federal, state, local, and doing our own taxes online.
CURRENT EXPENSES (all tracked through YNAB)
DEBT
Loan rental #1 - 75,000 at 6% with payment of 1,003/mo (19 1/2 more years)
Loan rental #2 - 80,000 at 7% with payment of 620/mo (20 more years)
Line of Credit against residence - 37,000 with minimum payment of int around 155/month
Navient Student Loans - 34,000 at 4.5% int with payment of 355/month
Car Loan - 9,000 3.0% int at 212/month
TOTAL MIN DEBT PAYMENTS PER MONTH 2,345
RENTAL EXPENSES
1,300/month - this includes property tax for the yr, utilities, repairs, vacancy
PERSONAL EXPENSES (all monthly )
Groceries/Household - 440
Going out - 150
Alcohol - 85
Kitchen Equipment - 37
Home Ins - 85
Home Maintenance/Remodel - 450 (this will drop drastically in a few years, we bought a 'fixer-upper' that wasn't livable and are doing about 2 spaces per year ourselves. We save money by doing DIY. This also includes a remodel of a barn into a substantial woodshop, storage for truck and camper, and space to work on another vehicle all in the same space)
Gas - 140 (I work local so I walk, Mr. OSD has a commute but is applying for work from home so hopefully this will go down to 20-30/month, our car gets 40mpg)
Car Ins - 92
Car Maintenance/Inspections - 55
Pets - 140/month (dog is on a raw diet for health, cat and dog both have joint supplements they need, they will probably be my last full time pets. Plan to foster after they pass. They are 10 and 12)
Monthly Bills (electric, gas, water, garbage) - 162/month
Cell Phones - 34 (both republic wireless)
Internet - 69 (would be eliminated if Mr. OSD gets work from home position
Entertainment - 55 (this is mostly Mr. OSD's expense)
Garden - 50 (mostly vegetables, slowly adding perennials and raised beds, this too will drop off slowly)
Gifts - 22 (we mostly do homemade gifts, especially for Christmas)
Life Insurance - 52 (term policies for both of us)
Property Taxes - 30 (our house is currently values at 18,000, reassessment is not for another 6 years)
Travel - 75 (1 substantial trip and maybe a 3 day weekend)]
Clothing - 24 (I shop at good will for t-shirts and work pants, this is mainly a shoe budget)
Health - 74
Overflow - 150 This is for the misc overflow that can happen in each category each month.
TOTAL - 2,593
TOTAL EXPENSES DEBT, RENTAL, PERSONAL - 6,238
Current Assets
Myself - ROTH 15,500 and 401k 13,500
Mr. OSD - 401k 16,000
Budget for retirement: 2,500 + health insurance
Liabilities - see above in budget
Desired Retirement Age 36
Additional Info: Our current annual debt payments are about 50k after extra payments. We are primarily using the debt snowball method because we want to improve our cash flow and it is far more motivating right now. Once we have a better cash flow we intend to max our 401k’s. We will use a ROTH conversion ladder after retirement.
We both plan to make some income after age 36. We are both interested in woodworking. Mr. OSD is interested in welding and casting.
We want to retire with about 300k in investment accounts and have all debt paid off. With the average monthly income from rentals being 3,000/month after expenses and making some random side gigging money we plan to continue to put money away after age 36. Eventually we want to sell the rentals which currently have a value of about 305k.
Any advice is appreciated and I know this is a crazy goal! However, we managed to go from making 32k/yr combined to pulling in about 130k/yr in only 5 yrs so we are all about the setting our sites high :D