In the next few months, I'll be in a unique position where I can potentially pay off my house. Let me provide some context to help you understand my situation.

My Goal

My ultimate goal has always been to generate passive income through rental properties. My initial goal is to earn enough passive income to cover all my bills, which amount to approximately $3,500 per month. Once I achieve this, I'll consider it a success, and any additional investments will be a bonus. I haven't set specific targets beyond this initial goal, but I may aim to increase my passive income to $5,000 or $10,000 per month in the future.

Current Properties

I currently have two properties:

The Loft:
- This property is rented out long-term and generates around $300 per month in passive income after HOA and management fees.
- The loft has approximately $100,000 in equity.
The House:
- This is a brand-new build (2024) that I'm currently occupying through house hacking.
- I invested $70,000 in the property, which means I have $70,000 in equity.
- My plan is to convert this property into an Airbnb or long-term rental within the next two years.
- Short-term rental comps suggest I can earn around $3,500-$4,000 per month, while long-term rental comps indicate I can earn around $3,000-$3,300 per month.

Seeking Advice

Given my upcoming financial situation, I'm seeking advice on the best course of action. In the next few months, I'll have:

$260,000 in savings
$100,000 in equity in the loft
$355,000 outstanding on the house

Should I sell the loft, use the equity, and combine it with my savings to pay off the house? This would allow me to rent out the house for $3,300+ per month, generating significant passive income. I've heard that it's not about the number of properties you own, but rather the amount of passive income you generate.

What would you do in my situation?

Atlanta, Georgia

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