Sell income property and pay off two mortgages.

[clipperskipper]

Hey all, here's the setup- Purchased new home in order to be closer to new job, August, 2022. Purchase price $600k, mortgage $400k.

Investment property, worth $600k, rents for $2500/mo, or 5% of the value of the property, $100k balance on the mortgage.

Home #3 is worth #500k+, no paper.

#Income is $240k, no other debt.

Roth Ira $650, 401K $800k.

What would you do?

[SouthJamaica]

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@clipperskipper wrote:

Hey all, here's the setup- Purchased new home in order to be closer to new job, August, 2022. Purchase price $600k, mortgage $400k.

Investment property, worth $600k, rents for $2500/mo, or 5% of the value of the property, $100k balance on the mortgage.

Home #3 is worth #500k+, no paper.

#Income is $240k, no other debt.

Roth Ira $650, 401K $800k.

What would you do?

---

I would sell the income property and pay off the mortgages.

[Horseshoez]

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@clipperskipper wrote:

Hey all, here's the setup- Purchased new home in order to be closer to new job, August, 2022. Purchase price $600k, mortgage $400k.

Investment property, worth $600k, rents for $2500/mo, or 5% of the value of the property, $100k balance on the mortgage.

Home #3 is worth #500k+, no paper.

#Income is $240k, no other debt.

Roth Ira $650, 401K $800k.

What would you do?

---

I might be inclined to keep everything as it is, continue working, and see where you stand when the spectre of retirement is looming large.

[pizzadude]

I'm not sure we have enough information on the financials  -- what are your interest rates on the mortgages?    Is the investment property covering all of your expenses ? 

What are your goals, eliminating all of your mortgage debts ?  

[clipperskipper]

Negative, 4.0% on the rental, 3.375 on our primary home.

At $4200/ mo, $2500/mo doesn't cover both. We recently sold another property for$200k that we're making phone numbers in ETF's.

[NoHardLimits]

I was faced with a similar decision.  The main factor for me was a looming retirement date.  I decided to prioritize retiring without any installment loan debt.  This entailed selling off 3 properties and paying cash for my primary residence.  I sleep very well at night.

[Shooting-For-800]

I would raise rent to $3500 and then make decisions.

[CorpCrMgr1]

Sell the excess properties and pay off the primary house.