Wondering if it is time to sell?

[Warren Halstrom]

I have two rentals. Both are homes that I previously lived in so I enjoy a low interest rate. One is in Ponte Vedra Beach with high HOA fees so the income is not particularly high. I have paid off 2/3 of the mortgage so most of my money is in the home. Getting encouragement from my wife to sell to pay off debts and take pressure off of family $. Two finished college, two in high school. I'm scared to death to relinquish what I feel is a key to our financial future. Only have about 100K in retirement. I am 54 years old.

[Ralph R.]

Warren Halstrom At 55 I moved to alaska I had a dog 3 bags of belongings and a 3 month job. I also had an underwater house that rented about 100 dollars a month below the payment. I've been here 10 years. Check my profile to see what I have today. Here's my .02 worth. You are not making any money on a 2/3 paid for rental that doesn't cash flow. You will not build true wealth on cash flow either. Sell the rental and reinvest it somehow. Equity in a house is a double edge sword. It provides security but it limits opportunity. 2/3 equity in a house is a little like stuffing money in a mattress. The longer it's there the less you can buy with it. At 55 you need to utalize every opportunity. You said something in your post that scares me. The first step is to learn to live within your means. Since you are talking about selling to help with household finances that tells me you want to sell to pay the bills. Selling in this case won't help. Get those bills paid, learn to live below your means so you can sell and reinvest your money. If you just sell it and spend the money in a couple years you will be right back where you are today. Remember if you want a different result you need to change what you are doing. This type of change takes a long time and is not easy to make. Also you need to be aware that while real estate is a very powerful way to build wealth it's also very very slow. I would recommend reading kiyosaki's book rich dad poor dad. It should help. RR