We bought a house and are now the new owners of a 500k mortgage, trying to decide if we should sell or rent our old condo and how all of this fits on our FIRE goals
This is San Diego so everyone talks about it being an appreciation market, but we have already experienced some nice appreciation in our condo, wondering how much more we can expect?
Basically So Cal appreciation vs VTSAX ?
Property Details - would you rent or sell this condo ?
Market Value: 400k
Original Purchase price: 250k (2011)
Original Mortgage Amount: 200k
Interest Rate: 3.625% - refi'd twice
Mortgage Term: 360 months
Term remaining: 313 months
Amount remaining on mortgage: 170k
Gross Rents: $2100
Principal and Interest (the P&I of your PITI - should match with the above info): 850
Taxes and Insurance (the T&I of your PITI): 300
HOA costs: 250
Deferred maintenance notes: Newly painted, new dishwasher, old windows, no AC
Anything else special or unique in regards to the numbers of the property (not the property itself; things such as city assessments, back taxes, special costs due to unique features of the property, etc. etc.): HOA has not increased in 5 years, 100% funded
Primary House PITI: 3000 ( 700 to principal, 1700 interest, 500 taxes)
Condo cashflow of 500 + mortgage interest deduction brings that payment down to ~2,200, while paying down $1000 principal on both properties.
FIRE Notes:
NetWorth: 900k but 325k of that is on our primary residence (100k) and the condo(225k). 450k in retirement accounts and 100k in cash.
Option 1: Stick with condo, let renters pay down mortgage, cashflow helps with our house payment
Option 2: Sell Condo, take the 150k appreciation +50k downpayment and make that part of stash.
...
Option 11: Sell everything, invest the full 900k and rent for a couple of years. Keep growing stash until above 1.2M then retire in Mexico with paid off house :)