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Old 05-26-2009, 01:10 PM
 
Location: New York, Westchester
506 posts, read 2,003,286 times
Reputation: 232

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Here is the quick scoop . I owe 285k on my house have home equity for 85k .total owed out 420k....married 4 kids 2,4,5,and 7......age 39...have stable job making 95k a year...own 2 multi family homes 1 i owe 350k on covers it self easly the othe i owe 410 covers itself easly....can sell eiter one in this market for 800k..................the ? is WOULD YOU sell one to be debt free no mortgage on your house, no credit card bills no car payments, just the other mortgage on the rental like i said covers itself very easly and be able to live stress free or hold onto it for another 10 years and make a nice penny off it every year.p.s. my wife makes 35k a year...and she would be able to stay home full time with the kids...........

Last edited by westchester; 05-26-2009 at 01:21 PM..
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Old 05-26-2009, 02:01 PM
 
28,384 posts, read 67,954,698 times
Reputation: 18190
How long have you successfully managed the rental properties? You have four little kids that are going to take up a lot more of your time as they get involved in more and more activities related to school and sports.

Retirement is a long way off.

If you could gross over $1.5M from both those properties, in this market, and net over $750K you would have a huge no hassle pile of dough. Time value of money calculations should show you that the pile of cash is going to blow away any potential revenue those places throw off. I have been in the same position and do not regret cashing out, in fact in hindsight I would have done it sooner...
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Old 05-26-2009, 02:13 PM
 
Location: New York, Westchester
506 posts, read 2,003,286 times
Reputation: 232
Default I have been in real estate for

over 10 years.....i only bought my first house for my family 3 years ago because i bought investment property's first.....now i am thinking maybe sell one off and stop living pay check to pay check....I am only 39 but i can retire from my job in 10 years which i plan on doing..... with a 75k retirement pakage and another 110 k from the other investments.I am a bussiness junkie i love starting new companys and see what happens...food store , barber shop . real estae , construction , bar,...so i am always busy...but now i am thinking stop worring about retirement so much and start living today a little more...i just want to make sure that when my kids get older that i will have a little something for all of them when they start out.....i never got that, and i did alright but ........you never know....
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Old 05-26-2009, 04:04 PM
 
Location: Castle Hills
1,129 posts, read 2,284,950 times
Reputation: 605
I'm surprised you are even asking this question on this forum. If you are telling the truth, its very obvious to sell.
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Old 05-26-2009, 06:31 PM
 
975 posts, read 1,543,530 times
Reputation: 523
Actually the answer is not so obvious assuming you've ever been in this position.

Personally I struggled for probably 3-4 years with the idea of should I payoff the house or not. If I pay off the house I won't have to worry about the mortgage, my family will always have a place to live, etc. But, if I pay off the house then I won't have the money available. What if some opportunity comes up? Will I be better off in the long run paying the house off later on and letting the money grow now?

I nearly drove myself crazy thinking through all the options and I must have changed my mind 500 times. In the end I paid off the house. Not sure if that's what you should do but I'm glad that's what I did.
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Old 05-26-2009, 08:06 PM
 
Location: New York, Westchester
506 posts, read 2,003,286 times
Reputation: 232
Default exactly traderx......

Nothing personal to the other poster, but I didn't make it this far by not having the guts to make big moves and take chances.....you have to understand if i just wait 10 more years i will be 49 retired (probably just in my mind im the type of person who will always work) the property will be worth 1 million and i will be bring in a net income of over 100k a year from this property.......Im the type of person who thinks about their retirement every day i mean EVERY DAY....when I retire I want to Retire, i do not want to worry about money any more..... so should i change my thought process and relax a little or stay the course..........tradex i like ou have thought about this for some time......how long ago did you sell?????
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Old 05-26-2009, 08:51 PM
 
28,384 posts, read 67,954,698 times
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Wow, your NET is $50,000 per property per year? BUY MORE HOUSES LIKE THAT!!!!!!!!

The net on my most profitable rentals was more like $400/mo on my best performing houses.

What's your vacancy rate?
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Old 05-26-2009, 09:10 PM
 
975 posts, read 1,543,530 times
Reputation: 523
Quote:
Originally Posted by westchester View Post
Nothing personal to the other poster, but I didn't make it this far by not having the guts to make big moves and take chances.....you have to understand if i just wait 10 more years i will be 49 retired (probably just in my mind im the type of person who will always work) the property will be worth 1 million and i will be bring in a net income of over 100k a year from this property.......Im the type of person who thinks about their retirement every day i mean EVERY DAY....when I retire I want to Retire, i do not want to worry about money any more..... so should i change my thought process and relax a little or stay the course..........tradex i like ou have thought about this for some time......how long ago did you sell?????
Actually my situation wasn't identical to yours as I had nothing to sell per se at the time. My situation was I had sold a business and became a full time daytrader. Really never meant to make a life out of it but thats how it turned out. Anyway thats a different story.

For me the question was, I have all this cash so maybe I should pay off the house. Then came all the other questions like what if I want to start a business? What if some neat business comes up for sale? What if I have a really bad year trading? Then again, if I do have a bad year maybe having the house paid would be best. Maybe I should invest the money in rental property. What if? What if? What if? You get the picture.
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Old 05-26-2009, 10:38 PM
 
Location: Colorado Springs, CO
2,221 posts, read 4,652,783 times
Reputation: 1682
Quote:
Originally Posted by westchester View Post
Here is the quick scoop . I owe 285k on my house have home equity for 85k .total owed out 420k....married 4 kids 2,4,5,and 7......age 39...have stable job making 95k a year...own 2 multi family homes 1 i owe 350k on covers it self easly the othe i owe 410 covers itself easly....can sell eiter one in this market for 800k..................the ? is WOULD YOU sell one to be debt free no mortgage on your house, no credit card bills no car payments, just the other mortgage on the rental like i said covers itself very easly and be able to live stress free or hold onto it for another 10 years and make a nice penny off it every year.p.s. my wife makes 35k a year...and she would be able to stay home full time with the kids...........
Would I sell one? In about a heartbeat and a half. But it only solves half the problem...it's only a temporary step into the light of freedom unless the behavior that created the credit card bills, car payments etc is dealt with at the same time. Otherwise you run the risk of taking that newfound glorious feeling of freedom from debt--of real wealth--and digging another hole elsewhere.
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Old 05-27-2009, 03:13 PM
 
Location: New York, Westchester
506 posts, read 2,003,286 times
Reputation: 232
Default Iv'e made up my mind ...................

Im selling one of my property's......took wife to for a massage , lunch, and got OUR nails done and I told her to give her 30 day notice.............Debt, mortgage free here I come........I feel like their is no wrong decision.....so It goes on the market tommorow...ANY TAKERS......... thanks for your thoughts....if all goes well i will post my pay off letter on here....i turn 40 on aug 3rd so i would love to be debt free when im still in my 30"s
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