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Should paying down our 2nd property/home be a priority?

Home Mortgages and Home Buying Should paying down our 2nd property/home be a priority?

  • Avatar snowcanyon 
    Participant
    Status: Physician
    Posts: 530
    Joined: 10/22/2018

    I think you are doing fine! I just think you are having inner conflict/guilt about your choices. If you clarify your goals and values with each other, I think you will be less conflicted and find peace and the correct way forwards.

    I agree with others that you need to can the AUM advisor. It’s okay to need hand holding, but this hand seems skanky. I think his interests are not aligned with yours; don’t put his kids through college at your expense!

    Do you have an account with Vanguard? You could try their advisors.

    You don’t have to do anything this second. Measure twice, cut once. Take the WCI course, maybe, before making a rash decision.

    #211575 Reply
    Liked by Tim
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 3071
    Joined: 09/18/2018

    How To Write an Investment Policy Statement

    You’re right. Relooked at my stuff…. FA models project 8.5% rate….not 10% like I stated.

    Click to expand…

    Was that before or after fees? Just curious.

    What asset allocation was recommended? Is it appropriate for both your risk tolerance and capacity.

    You are smarter than this! What is the meeting for if he already tailored the portfolio? That’s the last step. Unless it still needs signatures and payment.

    #211584 Reply
    Liked by ddswifey
    SerrateAndDominate SerrateAndDominate 
    Participant
    Status: Physician
    Posts: 487
    Joined: 02/01/2018

    If you’re going to use a group in Little Rock, have you at least checked out Aptus Financial? not sure if you’re using AFG or someone else in town there, but at least shop around.

    Earn everything.

    #211591 Reply
    Liked by Hank, ddswifey
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 6186
    Joined: 01/12/2016

    I dont think theres anything wrong with how things are currently. I think mainly your unhappy with current allocation, but that could be exceedingly temporary given you’re young with a lot of income and little overall debt. Or you’re simply over thinking it. You’ve set yourself up for success even in current circumstances providing you just give it a bit of time.

    I’d probably keep the rentals but that sounds over. You could have cash out refied them and traded personal debt (mortgages etc…) for business debt and decreased risk, etc…or you could simply take all the extra money that isnt going to the mortgages and dumped it into the market. A few months later you’re fine. Lots of ways to have played this.

    Only thing I dont get is the paying down of property to then turn around and sell it. Unless this wasnt a planned sale, this is an abysmal idea. Transaction costs in real estate means you’re basically just lighting a 3-9% portion of that money on fire. Dont do that on purpose.

    #211681 Reply
    Liked by ddswifey
    White.Beard.Doc White.Beard.Doc 
    Participant
    Status: Physician
    Posts: 937
    Joined: 02/06/2016

    Over 20 years the income on our rental properties grew enough to cash flow the college costs. Just wanted to give you one more perspective based on our experience…

    #211725 Reply
    Avatar dennis 
    Participant
    Status: Retired
    Posts: 52
    Joined: 04/18/2019

    Don’t kick yourself for wanting the cabin in your lifestyle. As I’m writing this I’m sitting at our lake home and I love it, without guilt. My “alarm clock” this a.m. was a turkey gobbling. If you have second thoughts about the rentals you could consider doing a 1031 exchange (have to set up before the close) to avoid/delay the capital gains and with the cash consider buying a small multifamily that may be easier to self manage. Just a thought.

    #211751 Reply
    ddswifey ddswifey 
    Participant
    Status: Spouse
    Posts: 74
    Joined: 04/17/2019

    @Tim–that’s before fees but good question i need to ask. We haven’t laid out the full plan yet. That is the reason for the next meeting. Yes, AA they are recommending does fit our risk profile. I appreciate the link. I am going to start trying to learn all I can. My  current financial knowledge does not go much past personal finances and DaveRamsey’s Financial Peace University. That’s the camp I’m coming from so there’s def things I’ve read here that are a whole new world to me. I will consider the WCI course—its sounds like something I need.

    @Zaphod— yes turning around and selling quickly was an unplanned sale.   Kids no longer in private school (which gave us freedom to move anywhere) and now they want to stay in district we are in.   Plus I don’t feel comfortable getting back up to a 600k house (even though we’d prob have 380k down) because of the AA that would then put us even further in–.

    @Dennis–You’re retired and at your cabin…. Sitting on my porch watching deer and turkey is our dream too!  That’s a big part of our big picture and why we do not want to let it go.

    I appreciate everyone’s take.   I think I had an epiphany that I’m conflicted because SAVING vs BUYING MORE PROPERTY and racing like mad people to pay it down are 2 different things.    We aren’t “blowing the money” frivolously…. But I’m ready to see all the money we’ve sent to debt reduction be used for building something up.     Kinda like the difference in plugging up holes in a leaky bucket….VS     adding more water!

    I'm here to learn

    #211852 Reply
    Liked by snowcanyon
    Avatar snowcanyon 
    Participant
    Status: Physician
    Posts: 530
    Joined: 10/22/2018

    As a small business owner, you should be able to take the course/conference/similar off your taxes. Trip to Vegas?

    #211860 Reply
    Liked by ddswifey
    ddswifey ddswifey 
    Participant
    Status: Spouse
    Posts: 74
    Joined: 04/17/2019

    @snowcanyon—-good point. Always fun to writeoff trips.   I was thinking about the online course. Actually wasn’t aware there was an in-person one. (Still new around here)

    I'm here to learn

    #211865 Reply
    Liked by snowcanyon

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