Should I sell or keep till retirement...... (55, relocate, state)
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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.....
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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.....
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You need to consult a tax expert and financial planner regarding the tax implications and long term strategy. Asking a question like this in a forum will get you questionable advice along with sharks.
I am not worried about the tax end of it.....Just wondering for stress and a little easier day to day living would it be a better move.....
Here you got to follow your heart. Money truly isn't everything.
Four years ago I sold the McMansion, relocated, bought way, way down in both size and worth of property. I got rid of the business I had for years, took a job as an employee of another company to make half what I made.
I've never been happier in my life and I don't regret a single thing I did.
Today I live stress free. What debt I have is very small, I don't have to worry about getting paid, no worry about making a payroll and now when I work I do the part that I love.
As far as success you are the only one who can define what it is to you.
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$420k is a lot to be leveraged out on primary residence (even with a good job).
Getting your wife home with the kids from a $35k / yr job would be great asset and appreciated by all.
I personally would consider a way to keep the multi-fam income props and get into a lower cost personal residence that would be supported by the multi-fam positive cash flows. Since you have some time... I would restructure investments in such a way that by the time of retirement you have the ability to replace your income via positive flows from the investment props. You can have a mortgage on primary residence, if the rentals are covering it. In fact... primary residences are a great source of cheap capital, so I have kept a mortgage (currently 4.1% and a HELOC currently 2.5%) and had the proceeds from those loans fuel my investment prop equity. (Note... I ONLY buy real estate with my real estate secured equities to keep 'like-kind' market exposure, and I don't speculate with that dough (such as bare land investments)). I keep enough 'liquid' assets to pay off the house if need be. It is good to keep loans on investment properties as it is a direct deduction against income. I also do that with my HELOCs, as they are segregated to ONLY fund investment real estate (no boats / SUV's). The IRS doesn't allow 'co-mingling' funds and a clean paper trail is a good thing, and ez to do on a HELOC with checks.
Future tax rates will be something you need to watch. Homeowner interest deduction is not worth a hoot with a low marginal rate (i.e. most retirees). Nor is $1m equity (or any number that suits you) sitting in a primary residence, costing you taxes, maint, and insurance and paying you nothing but your equivalent rent payment.
Here is the quick scoop . I owe 285k on my house have home equity for 85k .total owed out 420k
Big debt load and in this market if you marketed the house, it might short-sale. So you can not count on that 85k being there. If it short-sells, you have lost it.
Quote:
... 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.
Keep the Multi-Family-Residences [MFRs]. So long as they are self-supporting and provide a tax shelter, keep them.
Whenever this housing market levels out, they will still be there.
Quote:
... 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.....
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Good job there for having no CC debt, no car loans, etc.
You are not going to like this, but here goes.
The two MFRs are great!
The 420k house is a white elephant. With the current housing market you might only be able to get a small portion of that cost-basis out of it. And as you know it's mortgage is a huge burden. You might be able to sell and walk away for what you owe on it. Or maybe not.
Does either of your MFRs have a 'manager's apartment? One unit that is bigger and nicer than the rest?
God forbid that you and your wife lose your jobs. I would not wish that upon anyone. However in this economy, as tent cities are showing up, it does happen.
If you sold the big house and moved into one of your apartments. You could live there for free.
Your housing expenses would be gone entirely. You would still have the tax-shelter provided by the MFRs. And so long as they remain rented their mortgages are covered. Not from your pocket but from the renters' pockets.
When I saw my retirement date, this is what I did. My family went into an apartment in a MFR, so we had no housing expense. Then we began collecting MFRs. They built equity, and when I retired I cashed some of them out and used the cash to buy a farm. So I now live on a farm with no mortgage, and still have one MFR just to play with and to keep us tax-sheltered.
To start with, what is the reason for keeping three houses? You earn 95k and your wife earns 35k. Put together you both make 130k/year and there will still be 2 houses left. Why would you want to make life so complicated with 3 houses? My suggestion is to sell the one to get rid of debt and make life simple.
is for retirement ......that simple.....some people do stocks i do real estate...
Smart man.
More so the properties that generate an income.
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sorry you misunderstood me....
