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Updated 9 months ago,

User Stats

3
Posts
1
Votes
Ken Cort
1
Votes |
3
Posts

Should i sell to pay off debts?

Ken Cort
Posted

Hello BP members, i know this has been asked so many times but i will like another insight to help me make the right decisions. 

Here's my situation:

Debts

$127K loan @ 16.99% for an investment property rehab - $1963/months fixed

$50K Heloc against primary obtained when rates were low and has since adjusted to market (high) rate 

$36K (three business credit cards at diff rates, lowest at 22% apr)

Income

Mortgage 1 income after expenses (primary carrying the heloc -) - $600/month

Mortgage 2 income (also primary) - $ 162/month ( not enough equity in this to sell right away ($70k) but area is growing like crazy)

Mortgage 3 income (investment) - $720/month

Mortgage 4 income (this is the property the127k loan was taken against) - $856/month - This is the one i am considering selling. Granted i was in the process of rehabbing this when the rates started climbing up and i also had DSCR loan. I got the loan at 8% which bites into my cashflow a lot. If i sell this, i may be able to net between 189k - 230k depending on what i get, not including fees (agent) and capital gains

Goal

To be financially independent in 5 years or less so i can travel the world more. Initial goal was early retirement but i don't know or think that's totally realistic at this point. Maybe work less hours and whenever i want to and not because i absolutely have to? Possibly but i want to make sure i am doing the right thing to get there.

I am 39 years old, no child but plan on having one at some point. I work a fulltime job as well and make about $13000 a month after tax. I max out my 401k but I feel like i am struggling trying to stay up. Sometimes it feels like I am living paycheck to paycheck due to always trying to catchup with the debts. I drive an old car and only spend money on travel, not extravagant. I can't talk to family or friends because everyone around me thinks i am doing better than i am actually doing (or should be doing). Is it realistic to pay off the debt and still keep the house or better to sell? On one hand i am thinking, if i sell, i may regret as i may never be able to find something at the price point in the area plus i put a lot into that unit. On the other hand, i would like to live more comfortably and let my income reflect that in my life choices (and not have fear about losing my job and not being able to pay my debts. Thoughts? Advice?

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