{"id":183019,"date":"2025-03-20T08:59:27","date_gmt":"2025-03-20T14:59:27","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=183019"},"modified":"2025-05-28T09:04:01","modified_gmt":"2025-05-28T15:04:01","slug":"1-8-million-trapped-in-real-estate-purgatory","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/1-8-million-trapped-in-real-estate-purgatory","title":{"rendered":"This Investor Has $1.8 Million Trapped in Real Estate Purgatory"},"content":{"rendered":"\n<p>Below is an email transcript from a BiggerPockets Money listener who sent me a message about their personal financial situation and wanted my insights. We\u2019ve used AI to edit the email\u2019s content to be more readable in an article format and remove sensitive personal information from the sender to protect their privacy.<\/p>\n\n\n\n<p><strong><span data-preserver-spaces=\"true\">Email Subject: Appreciating the Podcast &amp; Seeking Insights on Financial Independence<\/span><\/strong><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Dear Mindy and Scott,<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I just listened to your <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/money-613\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">podcast episode on the Middle-Class Trap <\/span><span data-preserver-spaces=\"true\">concept<\/span><\/a><span data-preserver-spaces=\"true\">, and I <\/span><span data-preserver-spaces=\"true\">really<\/span><span data-preserver-spaces=\"true\"> appreciated the content and suggestions!<\/span><span data-preserver-spaces=\"true\"> Your discussion resonated deeply with me because I feel like I\u2019m squarely in this trap and am eager to find a way out.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">A Bit About Us<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">My wife and I live in <\/span><strong><span data-preserver-spaces=\"true\">Louisville, CO<\/span><\/strong><span data-preserver-spaces=\"true\">\u2014I\u2019m <\/span><strong><span data-preserver-spaces=\"true\">47<\/span><\/strong><span data-preserver-spaces=\"true\">, she\u2019s <\/span><strong><span data-preserver-spaces=\"true\">43<\/span><\/strong><span data-preserver-spaces=\"true\">, and I have a <\/span><strong><span data-preserver-spaces=\"true\">9-year-old<\/span><\/strong><span data-preserver-spaces=\"true\"> from a previous marriage. We\u2019ve been married for <\/span><strong><span data-preserver-spaces=\"true\">1.5 years<\/span><\/strong><span data-preserver-spaces=\"true\">, and last fall, we moved my <\/span><strong><span data-preserver-spaces=\"true\">80-year-old mother<\/span><\/strong><span data-preserver-spaces=\"true\">, who has dementia, into our home so she could have the support she needs. We also have <\/span><strong><span data-preserver-spaces=\"true\">two golden retrievers<\/span><\/strong><span data-preserver-spaces=\"true\"> rounding out our household.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Financial Overview<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Our finances aren\u2019t fully blended yet, but I\u2019ve been a diligent saver while my wife is working on building her savings after recently completing her <\/span><strong><span data-preserver-spaces=\"true\">MBA from DU ($75K, financed).<\/span><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">My net worth:<\/span><\/strong><span data-preserver-spaces=\"true\"> ~$2.855M<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">My wife\u2019s net worth:<\/span><\/strong><span data-preserver-spaces=\"true\"> ~$75K (401(k): $150K, MBA debt: -$75K)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Income:<\/span><\/strong>\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">My W-2:<\/span><\/strong> <strong><span data-preserver-spaces=\"true\">$200K<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">My wife\u2019s W-2: $135K<\/span><\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Investment Breakdown<\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Total investments:<\/span><\/strong><span data-preserver-spaces=\"true\"> $937K<\/span>\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">401(k):<\/span><\/strong><span data-preserver-spaces=\"true\"> $10K (new)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">HSA:<\/span><\/strong><span data-preserver-spaces=\"true\"> $37K<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">529 plan:<\/span><\/strong><span data-preserver-spaces=\"true\"> $22K<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Rollover IRA:<\/span><\/strong><span data-preserver-spaces=\"true\"> $550K<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Roth IRA: <\/span><\/strong><span data-preserver-spaces=\"true\">$150K<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Brokerage:<\/span><\/strong><span data-preserver-spaces=\"true\"> $170K<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Cash: <\/span><\/strong><span data-preserver-spaces=\"true\">$15K<\/span><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Credit cards:<\/span><\/strong><span data-preserver-spaces=\"true\"> $7K (paid off monthly; just returned from a <\/span><strong><span data-preserver-spaces=\"true\">Peru trip<\/span><\/strong><span data-preserver-spaces=\"true\"> and have a big ski trip planned)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Car loans:<\/span><\/strong>\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">My 4Runner:<\/span><\/strong><span data-preserver-spaces=\"true\"> $16K left<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Her Model Y:<\/span><\/strong><span data-preserver-spaces=\"true\"> $4K left (goal: No more car loans after these <\/span><span data-preserver-spaces=\"true\">are paid off<\/span><span data-preserver-spaces=\"true\">)<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Real Estate Holdings<\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Primary residence:<\/span><\/strong><span data-preserver-spaces=\"true\"> $1.3M value | <\/span><strong><span data-preserver-spaces=\"true\">$463K loan<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Rental No. 1:<\/span><\/strong><span data-preserver-spaces=\"true\"> $625K value | <\/span><strong><span data-preserver-spaces=\"true\">$368K loan<\/span><\/strong><span data-preserver-spaces=\"true\"> (refinanced during divorce, breaks even)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Rental No. 2:<\/span><\/strong><span data-preserver-spaces=\"true\"> $490K value | <\/span><strong><span data-preserver-spaces=\"true\">$72K loan<\/span><\/strong><span data-preserver-spaces=\"true\"> (cash-flows <\/span><strong><span data-preserver-spaces=\"true\">$500\/month<\/span><\/strong><span data-preserver-spaces=\"true\">)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Rental No. 3:<\/span><\/strong><span data-preserver-spaces=\"true\"> $425K value | <\/span><strong><span data-preserver-spaces=\"true\">Paid off<\/span><\/strong><span data-preserver-spaces=\"true\"> (cash-flows <\/span><strong><span data-preserver-spaces=\"true\">$1,500\/month<\/span><\/strong><span data-preserver-spaces=\"true\">)<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Getaway cabin:<\/span><\/strong><span data-preserver-spaces=\"true\"> $350K value | <\/span><strong><span data-preserver-spaces=\"true\">Paid off<\/span><\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Why I Feel Stuck in the \u201cTrap\u201d<\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">I\u2019m <\/span><strong><span data-preserver-spaces=\"true\">eager to leave the workforce<\/span><\/strong><span data-preserver-spaces=\"true\">, but my wife is happy to continue working<\/span><span data-preserver-spaces=\"true\"> (<\/span><span data-preserver-spaces=\"true\">though<\/span><span data-preserver-spaces=\"true\"> she\u2019s considering a career shift that may come with a lower salar<\/span><span data-preserver-spaces=\"true\">y).<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">We <\/span><strong><span data-preserver-spaces=\"true\">max out our 401(k)s<\/span><\/strong><span data-preserver-spaces=\"true\"> and contribute to our <\/span><strong><span data-preserver-spaces=\"true\">HSA<\/span><\/strong><span data-preserver-spaces=\"true\"> (not fully maxed), but <\/span><span data-preserver-spaces=\"true\">only<\/span><span data-preserver-spaces=\"true\"> contribute <\/span><strong><span data-preserver-spaces=\"true\">modestly to our brokerage account<\/span><\/strong><span data-preserver-spaces=\"true\">.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Despite our net worth, we often <\/span><strong><span data-preserver-spaces=\"true\">feel like we don\u2019t have much discretionary income, <\/span><\/strong><span data-preserver-spaces=\"true\">though we do prioritize travel and experiences.<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Future Considerations and Tax Planning<\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">I <\/span><strong><span data-preserver-spaces=\"true\">purchased our primary home 12 years ago for $550K<\/span><\/strong><span data-preserver-spaces=\"true\">, so when we sell, we\u2019ll owe <\/span><strong><span data-preserver-spaces=\"true\">capital gains taxes beyond the primary home exclusion<\/span><\/strong><span data-preserver-spaces=\"true\">. <\/span><span data-preserver-spaces=\"true\">We plan to sell when my son goes to college<\/span><span data-preserver-spaces=\"true\"> (<\/span><strong><span data-preserver-spaces=\"true\">~9 year<\/span><span data-preserver-spaces=\"true\">s<\/span><\/strong><span data-preserver-spaces=\"true\">).<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Considering<\/span><span data-preserver-spaces=\"true\"> a strategy to <\/span><strong><span data-preserver-spaces=\"true\">move into Rental No. 1 (a condo in Boulder), live there for two years, then sell it as a primary residence<\/span><\/strong><span data-preserver-spaces=\"true\"> to take advantage of tax exclusions before transitioning to a mountain home.<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Would<\/span><span data-preserver-spaces=\"true\"> Love Your Thoughts!<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">If our situation sounds like an interesting <\/span><strong><span data-preserver-spaces=\"true\">use case for your podcast<\/span><\/strong><span data-preserver-spaces=\"true\">, I\u2019d be happy to <\/span><span data-preserver-spaces=\"true\">dive into more<\/span><span data-preserver-spaces=\"true\"> details.<\/span><span data-preserver-spaces=\"true\"> Otherwise, I just wanted to share how relevant your episode was to our journey\u2014thanks for getting the wheels turning!<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Best,<\/span><\/p>\n\n\n\n<p><strong><span data-preserver-spaces=\"true\">C<\/span><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Scott\u2019s Reactions<\/span><\/h2>\n\n\n\n<p><strong><span data-preserver-spaces=\"true\">C\u2014<\/span><\/strong><span data-preserver-spaces=\"true\">Thanks for reaching out. Congratulations on a <\/span><span data-preserver-spaces=\"true\">clearly<\/span><span data-preserver-spaces=\"true\"> successful financial situation, with what I imagine is a wonderful lifestyle and a net worth in the upper percentiles of Americans! Let\u2019s get to work.&nbsp;<\/span><\/p>\n\n\n\n<p><strong><span data-preserver-spaces=\"true\">The obvious problem here is that the rental portfolio is not providing near-term optionality. <\/span><\/strong><span data-preserver-spaces=\"true\">While you could be building long-term net worth, this portfolio is not <\/span><span data-preserver-spaces=\"true\">doing what you need it to do<\/span><span data-preserver-spaces=\"true\">, and you\u2019ve <\/span><span data-preserver-spaces=\"true\">got<\/span><span data-preserver-spaces=\"true\"> well over $1.1M <\/span><span data-preserver-spaces=\"true\">in this<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">producing<\/span><span data-preserver-spaces=\"true\"> $2,000 per month in cash flow.<\/span> <span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> is not why we invest in real estate, and needs to be corrected.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Here\u2019s what I\u2019d take a look at:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Rental 3: <\/span><\/strong><span data-preserver-spaces=\"true\">These are terrible numbers. This property is operating at a 4% <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/cap-rate-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">cap rate<\/span><\/a><strong><span data-preserver-spaces=\"true\">. <\/span><\/strong><span data-preserver-spaces=\"true\">Given that it <\/span><span data-preserver-spaces=\"true\">is paid off<\/span><span data-preserver-spaces=\"true\">, you could likely <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/1031-exchange\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">1031 exchange<\/span><\/a><span data-preserver-spaces=\"true\"> this property for something that generates much more <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/rental-property-cash-flow-analysis\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">cash flow<\/span><\/a><span data-preserver-spaces=\"true\"> at this valuation. Given that the property <\/span><span data-preserver-spaces=\"true\">is paid off<\/span><span data-preserver-spaces=\"true\">, it\u2019s also clearly not being held to drive appreciation. <\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">I love paid-off rentals\u2014but their purpose, almost by definition, is to generate an acceptable income stream. Gotta get above a 5% cap rate here, I think. <\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Rental 1: <\/span><\/strong><span data-preserver-spaces=\"true\">I am skeptical, before seeing more numbers, that this property will contribute to your freedom for <\/span><span data-preserver-spaces=\"true\">seven-plus<\/span><span data-preserver-spaces=\"true\"> years.<\/span><span data-preserver-spaces=\"true\"> While the leverage may drive a solid <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/internal-rate-return-irr\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">IRR<\/span><\/a><span data-preserver-spaces=\"true\"> compared to your lightly levered properties, this property is for future Charles, not for near-term Charles. Is that OK with you? <\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">If not, we should consider selling it or aggressively paying off the mortgage if the property has a high cap rate. If the play is for this to be your primary residence in nine to 10 years, that changes things a little bit. <\/span><span data-preserver-spaces=\"true\">But<\/span><span data-preserver-spaces=\"true\"> that\u2019s a <\/span><span data-preserver-spaces=\"true\">deep<\/span><span data-preserver-spaces=\"true\">, long-term <\/span><span data-preserver-spaces=\"true\">move<\/span><span data-preserver-spaces=\"true\"> to lock up $<\/span><span data-preserver-spaces=\"true\">300K<\/span><span data-preserver-spaces=\"true\"> for <\/span><em><span data-preserver-spaces=\"true\">10 years<\/span><\/em><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> Be <\/span><em><span data-preserver-spaces=\"true\">sure <\/span><\/em><span data-preserver-spaces=\"true\">if that\u2019s the plan. Otherwise, treat it like any other real estate investment asset.&nbsp; <\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Rental 2:<\/span><\/strong><span data-preserver-spaces=\"true\"> I bet that the cash flow jumps meaningfully if you pay off the property. <\/span><span data-preserver-spaces=\"true\">Your IRR and spreadsheet math will likely <\/span><span data-preserver-spaces=\"true\">tell<\/span><span data-preserver-spaces=\"true\"> you <\/span><span data-preserver-spaces=\"true\">not to<\/span><span data-preserver-spaces=\"true\"> pay this <\/span><span data-preserver-spaces=\"true\">thing<\/span><span data-preserver-spaces=\"true\"> off.<\/span> <span data-preserver-spaces=\"true\">But<\/span><span data-preserver-spaces=\"true\"> \u201cfeelings math\u201d might make this compelling\u2014if you spend $<\/span><span data-preserver-spaces=\"true\">72K<\/span><span data-preserver-spaces=\"true\"> to pay off this property and its cash flow <\/span><span data-preserver-spaces=\"true\">jumps<\/span><span data-preserver-spaces=\"true\"> to $2,000 per month ($1,500 incrementally) per year, you will <\/span><em><span data-preserver-spaces=\"true\">feel <\/span><\/em><span data-preserver-spaces=\"true\">$<\/span><span data-preserver-spaces=\"true\">18K<\/span><span data-preserver-spaces=\"true\"> per year freer with this move.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">The million <\/span><span data-preserver-spaces=\"true\">bucks<\/span><span data-preserver-spaces=\"true\"> in <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-home-equity\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">equity<\/span><\/a><span data-preserver-spaces=\"true\"> you have here needs to be working harder, especially that $<\/span><span data-preserver-spaces=\"true\">750K<\/span><span data-preserver-spaces=\"true\"> in the two nearly paid-off rentals.<\/span><span data-preserver-spaces=\"true\"> They need to be building your long-term wealth or generating cash flow. It looks to me, as an outsider without more context, that while they got you here, they won\u2019t get you to where you want to go.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Primary:<\/span><\/strong><span data-preserver-spaces=\"true\"> I don\u2019t know your numbers on the mortgage, but I bet that the simple act of paying that mortgage off is a big piece of the puzzle in allowing you to comfortably step back from work, especially if your wife continues to work a job that comes with the basic benefits of health insurance for the family.<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Potential Next Steps<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">You <\/span><span data-preserver-spaces=\"true\">guys<\/span><span data-preserver-spaces=\"true\"> bring in $<\/span><span data-preserver-spaces=\"true\">335K<\/span><span data-preserver-spaces=\"true\"> per year right now.<\/span><span data-preserver-spaces=\"true\"> Here\u2019s one hypothesis for you to explore:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Putting in a high, but firm, spending ceiling:<\/span><\/strong><span data-preserver-spaces=\"true\"> Capping your spending at $11,000 per month.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">In a related move, become experts in travel rewards:<\/span><\/strong> <span data-preserver-spaces=\"true\">On<\/span><span data-preserver-spaces=\"true\"> that spending, <\/span><span data-preserver-spaces=\"true\">those<\/span><span data-preserver-spaces=\"true\"> will rack up and allow you to retain meaningful lifestyle options.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Max out the HSA.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Max out the 401(k)s.&nbsp;<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">From there, allocate the remaining<\/span><span data-preserver-spaces=\"true\"> ~<\/span><span data-preserver-spaces=\"true\">$75,000 you\u2019ll have leftover toward paying off the mortgage on your primary <\/span><span data-preserver-spaces=\"true\">early<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Reposition the $1.1M in rental equity into 6%+ cap rate rentals with little\/no incremental leverage, or pursue my bias of leaving Rental 1 in place, paying off Rental 2, and 1031 exchanging Rental 3.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">I believe that within three to four years, if you find yourself with a paid-off home, a portfolio like this will enable \u201cWife FI\u201d <\/span><span data-preserver-spaces=\"true\">no<\/span><span data-preserver-spaces=\"true\"> problem,<\/span><span data-preserver-spaces=\"true\"> without <\/span><span data-preserver-spaces=\"true\">you having<\/span><span data-preserver-spaces=\"true\"> to touch <\/span><span data-preserver-spaces=\"true\">anything in<\/span><span data-preserver-spaces=\"true\"> the retirement accounts.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">First Pass Verdict<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">In your situation, I don\u2019t think you have too much in <\/span><span data-preserver-spaces=\"true\">the<\/span><span data-preserver-spaces=\"true\"> retirement account<\/span><span data-preserver-spaces=\"true\">s\/H<\/span><span data-preserver-spaces=\"true\">SAs.<\/span><span data-preserver-spaces=\"true\"> I\u2019d keep contributing while you work.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I think that your problem is that you are in real estate purgatory, where your portfolio is too lightly levered for it to be a meaningful returns multiplier, yet you also have enough debt service between the three mortgages that you can\u2019t confidently cut back at work without running into cash flow problems.<\/span><\/p>\n\n\n\n<div id=\"hero-block_62df1a82bfc88\" class=\"first:mt-0 hero-block py-4    has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">The Money Podcast<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:16px\">Kickstart your personal finance journey with Scott and Mindy as they break down the good, bad, and ugly of people\u2019s personal money stories. From interviews with entrepreneurs and business owners to breakdowns of listener finances, you\u2019ll get actionable advice on how to get out of debt and grow your money.<\/p>\n\n\n\n<div id=button-custom-event-block_65400b52d0a76 class='button-custom-event'>\n      <a href=\"https:\/\/link.chtbl.com\/Money\" x-on:click=\"window.analytics.track(&#039;Money Podcast Blog CTA Click&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/1-8-million-trapped-in-real-estate-purgatory&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-slate-dark-background-color has-text-color has-white-color\" target=\"_blank\" rel=\"noopener\">Listen Now<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  shadow-xl rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/12\/BP_Money_podcast_square-1024x1024-1-e1660861377128.jpeg\" alt=\"\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Below is an email transcript from a BiggerPockets Money listener who sent me a message about their personal financial situation and wanted my insights. We\u2019ve used AI to edit the [&hellip;]<\/p>\n","protected":false},"author":1676,"featured_media":158630,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7398],"tags":[],"class_list":["post-183019","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retirement"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/183019","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/1676"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=183019"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/183019\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/158630"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=183019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=183019"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=183019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}