not sure what my yield on investment is, but Ill break the picture down below.
my house-single family home 3bed/2bath, 105K mortgage, monthly payment of $610 for 30yrs @4.25%
rental 1-single family home 3bed/2bath, no mortgage (house value 160K) receiving $1,300 on it.
rental 2-single family home 4bed/1bath, 67K mortgage, (house value 150K) monthly payment of $400 for 25 yrs @5.125, receiving $1,365 on it. Thanks for the link Ill begin studying right away!
Your home is not an investment, it's an expense. However, as an owned home with a low interest rate, it's a lot better of an expense then a rental, or a higher priced home.
Rental 1 has a yield of 9.75% yearly, as far as I understand it, rentals above 6% are a good deal.
Rental 2 has a yield of 10.9% yearly.
I think we need to flip this around, how bout instead of me teaching you about index investing, asset allocation, and all that, you teach me about being a landlord? Those numbers are awesome.
Take your time learning about investing, and you mind as well take your time averaging in(dollar cost averaging) your money into your investments after you decide what to do. I would say that a decent, high guarenteed return you have if you want to go for it is to sink money against rental #2, as a 5.125% guaranteed return is absolutely nothing to snub your nose at.