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Priscilla Davenport
  • Investor
  • Lansing, MI
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Should I buy more properties or starting saving my cash?

Priscilla Davenport
  • Investor
  • Lansing, MI
Posted Jul 27 2016, 21:26

Im a single parent and investor with 4 rental properties. Three have been paid off in the last few years and the last payment on the 4th home will be February 2017. House #1 appraises at $94,000 with $1,000 rent, #2 $76,000/$900 rent, #3 $66,000/$1,000 rent and #4 $80,000 rent $900 (Im currently living in it temporarily til next summer while I rebuild my paid off primary residence $143,000 that had a fire).  I also was injured a couple of years ago in a car accident and have had a few minor surgeries with possibly more extensive ones to come. Id planned on working until 60 at my state government job but I can retire in 3 years at 55 (36 years) with a full pension of about $1,700.  Im currently on an intermittent work schedule because of flareups and may need to retire between 55-57. 

My rents next year will total $3,800 monthly but after taxes, insurance, repairs etc it will cash flow  about half off that. My expenses will be about $2,000 monthly conservatively or $2,500 if I travel as Ive planned. Decent 3 bedroom rentals can be purchased in my town for about $35,000 to $40,000 then I usually do minor rehab for $5,000 to $10,000 more to get better rents.

My question is whether I should hustle to buy another rental or two with future cash in the next couple of years? Put down 20% and finance 2-3 more in retirement? Possibly down size and sell my 4 bedroom 2 bath primary residence (since I only have one 17 year old still at home) to finance them? I dont want to be house rich and cash poor in retirement either. I was of work for almost a year and depleted most of my 401K down to about $50,000. To cut down future costs Ive also replaced windows and roofs on all houses and installed 3 new furnaces with two more furnaces that may need replacing eventually. Ive lost sleep on many nights about a plan. Any suggestions on future rental purchases? 

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