Path to FI - what would you do?

[Felisha McCurry]

Scenario - what would you do?

Monthly expenses - $3k

Rental income - $2k

Cash - $200k

(Don't want a ton of rentals to manage)

Options:

A. Payoff another rental - approx $100k to clear the extra 1k to get to the 3k/mth and be FI now.

B. Invest 200k in market (index funds) and draw down/dividends 1k to make up difference in monthly expenses.

C. Buy another rental with $100k that will net the extra $1k to get to the 3k/mth to be Fi.

[Daniel Reyes]

Hi Felisha,

These are ideal scenarios! Congratulations on the fruit of your labor.

I would prefer option C. In order of attractiveness - C, A, B.

It appears you have an opportunity to comfortably purchase another rental property. As a long-term hold, your real estate will not only produce the income it looks like you are requiring, but your capital will appreciate.

Congratulations again, I wish you all the best.

Daniel Reyes