SFH rental & Retirement Planning

[Mica Moore]

 My concerns and focus in this phase of my life is long-term financial planning - retirement etc (46).

I dont have any retirement savings except my job offers a State Pension and I own 2 single family houses. But no 401K or IRA.

I have $67K in non- mortgage debt that I am snowballing. $185K of mortgage debt on my primary. The rental is free & clear with a market value of $185K. So im trying to figure out based on my situation what is the best move for long-term financial sucess.

Now the rental is bringing in $800 net cash flow monthly, after all expenses are paid. I have an excellent long-term tenant who causes me no landlord headaches. The area and home does not appreciate very rapidly though. I bought it for $170K and 2.5 years later its worth $185K.

Is it better to keep the rental (as part of my retirement planning) as a long- term investment or should I sell, pay off all consumer debt ($67K) and put the left over cash in IRA, 401K, HYSA? The net from a sale would be about $100K.

[Jonathan Bock]

@Mica Moore

The answer is "it depends" no one on the forum has enough info to give you specific advice.  

Based on your use of the snowball term I will assume you could be a Ramsey disciple and that will have an impact on your philosophy and mindset related to your decision making. 

On another note qualified accounts can be great but you have a pension which really changes your dynamics compared to the majority of the population so you need to factor that too.   

So no right or wrong just different options and that takes work so if you want professional help I'd recommend you contact advisors on the forum or go to the BUILD YOUR TEAM tab and do a search for professional financial advice.