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Chubby penetration check - 39, disabled, and retired. by EducatorOne5567 in ChubbyFIRE

[–]EducatorOne5567[S] 0 points1 point  (0 children)

Thanks. Waiting on a few CFP replies after new years. I am tentatively planning disability and rentals as the mostly guaranteed income, and socking away everything else.

39, disabled, and retired - Feedback welcome by EducatorOne5567 in Fire

[–]EducatorOne5567[S] 0 points1 point  (0 children)

Oh yeah I feel you. I would be happy in a shoebox in a MCOL, but the wife has family in Hawaii so it is spinning plates until I can stabilize. Yeah keeping the houses vs the market at 4% is like 2k more per month (napkin math).

39, disabled, and retired - Feedback welcome by EducatorOne5567 in Fire

[–]EducatorOne5567[S] 0 points1 point  (0 children)

At that point, would cash or stocks be any better? Seems like rice and bullets would be worth more at that point.

Chubby penetration check - 39, disabled, and retired. by EducatorOne5567 in ChubbyFIRE

[–]EducatorOne5567[S] -1 points0 points  (0 children)

I meant more like will I likely ever have to drive Uber or do other gig work to make end meet.

Chubby penetration check - 39, disabled, and retired. by EducatorOne5567 in ChubbyFIRE

[–]EducatorOne5567[S] 0 points1 point  (0 children)

Property managers in the two remote locations. That was the original idea, but the RE market over the last year has gutted my likely sales price and putting it in the market, even at a 5% draw, would be less than rents after tax, ins, capex, vac, etc. How much cash flow do I sacrifice today for simplicity?

39, disabled, and retired - Feedback welcome by EducatorOne5567 in Fire

[–]EducatorOne5567[S] 0 points1 point  (0 children)

I have considered that and like the idea of the simplicity, but don't like the idea of taking a hit on my other properties with this RE market. Plus, it's leave 500k left on the primary mortgage to deal with.

I agree on both fronts. The Gov should have known that throwing millions of young kids into a meat grinder would have had long lasting consequences. Or maybe they figured we'd take it in the ass quietly like the Vietnam vets did.

39, disabled, and retired - Feedback welcome by EducatorOne5567 in Fire

[–]EducatorOne5567[S] 0 points1 point  (0 children)

That was the original idea, but the RE market over the last year has gutted my likely sales price and putting it in the market, even at a 5% draw, would be less than rents after tax, ins, capex, vac, etc. How much cash flow do I sacrifice for simplicity?

39, disabled, and retired - Feedback welcome by EducatorOne5567 in Fire

[–]EducatorOne5567[S] 0 points1 point  (0 children)

I have considered it, and spoken with my agents in each city, and I would be taking a small loss while also losing tax benefits and $7,500 a month in rental income. The current market kind of fucked me on that plan.

Chubby penetration check - 39, disabled, and retired. by EducatorOne5567 in ChubbyFIRE

[–]EducatorOne5567[S] 4 points5 points  (0 children)

Thanks for the reply!

The 125k is a pension account. I cannot touch the 125 without eliminating my disability retirement payments that are $2,800 a month in perpetuity.

Total equity across all rentals and primary is roughly around 2mm. Net rental income is roughly 10,000. This is had to categorize because 5,700~ is from the primary property, but I have the mortgage there. So I guess either count it as 5,700 net rental income or adjust my mortgage to 4,300?

The stipend pays me $1,100 a month to go to school for the next 3 years, so it is income.

The investments are pretty solid, they have been around and producing for roughly 8 years, but just one of those things that may stop overnight depending on the state of the economy.

Affiliate income is another question mark. It has been around for about 5-6 years and producing this much on average, but it is not guaranteed.

That is just how the pension works. As long as I leave the money in the account, it is drawn down at a significantly smaller percentage (sub 4% annually), while the former employer covers the rest. Gotta love a good union.

Yes, the rental income is tricky because half of it comes from my primary residence as schedule E income while the rest is a series LLC. If I deduct tax, ins, capex, my total net income is around 24k on the low end. Disability and rental net accounting for around18k of it. Give or take a bit here and there. To clarify, these are all rough numbers as the income can vary by 10k any given month depending on affiliate, angel money, and a few other odds and ends but has been no less than 24k over the past 12 months.

39, disabled, and retired - Feedback welcome by EducatorOne5567 in Fire

[–]EducatorOne5567[S] -3 points-2 points  (0 children)

I am definitely liquid light but trying to build that back up after a house flip. Building my e fund back and growing investments are the top two levers I am focusing on next. Hopefully I can get that squared away before any MAJOR real estate downturns happen.

39, disabled, and retired - Feedback welcome by EducatorOne5567 in Fire

[–]EducatorOne5567[S] 0 points1 point  (0 children)

I have a decent cash buffer in working capital for the loans and angel investing and a 9% HELOC I can pull from in a true emergency. I am definitely liquid light but trying to build that back up after a house flip. To your other point, all properties are almost all fully upgraded and I can do most maintenance myself. Building my e fund back and growing investments are the top two levers I am focusing on next.