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What would MM Do regarding Rentals?
Hello. I am curious what MM would do regarding our situation:
We have no consumer debt, a mortgage on our current home and have two rentals (homes we previously lived in before we got married and ended up buying a new home - aka stupid tax - that we are renting out). We are putting in 15% to retirement and some away for kids colleges.
At this point, we are basically breaking even with the rentals. However, one of the rentals has an intersted only loan on it. Yuck. This same rental is currently underwater, and we do not plan to keep in long term (only until we can get out owning near nothing). We are only paying the interest payment on this loan, though we could pay more.
My question is, what should we be doing with our "extra" money? We are finishing a fairly expensive yard / shed project and then will focus our money on something else. What should we be doing?
Let me know what other information you may need. Thanks.
Re: What would MM Do regarding Rentals?
TTC since 1/13 DX:PCOS 5/13 (long, anovulatory cycles)
Clomid 50mg 9/13 = BFP! EDD 6/7/14 M/C 5w6d Found 11/4/13
1/14 PCOS / Gluten Free Diet to hopefully regulate my system.
Chemical Pregnancy 03/14
Surprise BFP 6/14, Beta #1: 126 Beta #2: 340 Stick baby, stick! EDD 2/17/15
Riley Elaine born 2/16/15
TTC 2.0 6/15
Chemical Pregnancy 9/15
Chemical Pregnancy 6/16
BFP 9/16 EDD 6/3/17
Beta #1: 145 Beta #2: 376 Beta #3: 2,225 Beta #4: 4,548
www.5yearstonever.blogspot.com
I can tell you what we did. My home became a rental when we got married. First we worked on paying off our current home, and then we paid off the rental. Not knowing the answers to the above questions I would probably either pile up the money to try to sell the underwater rental or throw the extra at the mortgage each month. That way you can get rid of it eventually.
One thing to ask yourself on the other one that isn't upside down- if we didn't already own this would we buy it to rent out? For us the answer has become yes, we like the income it produces every month. We have actually thought about possibly buying another rental in the future. But that is something you both have to decide on the one that isn't upside down.