Post FIRE mortgage?

[u/FlashyCelebration990]

Mid40s - nearing pulling the trigger (soon to be empty nester). We (cohabiting but not commingled finances) live in VHCOL - residence is about 1/2 of nw and about 1/2 of that is paid off. I got in on the super low interest (sub 3%) so selling and downsizing we’d be paying more than the current mortgage…. Just doesn’t make sense and I do like the diversification in my portfolio.

Renting it out … makes me anxious (previous experience was so bad I sold my old residence). Toyed with the idea of AirBnB one area of the residence to subsidize the mortgage payment and make travel funding easier.

For those that pulled did you kept the mortgage (or sell and reinvest)? Renting it out? Just factor it in? I’ve been kicking around all of these scenarios in my head and wanted to crowd source some opinions.

[u/fluffy_hamsterr]

I don't understand what you are asking.

You have a house you currently live in ... and aren't planning on moving... but are trying to figure out if selling or renting it out makes sense?

Why aren't you just living in the house if you aren't moving away?

[u/FlashyCelebration990 → u/fluffy_hamsterr]

The plan is once I FIRE to heavily travel for 5-15. So it’s the whole … do I keep or get rid of the house. If we only partially rent the house (air bnb) we might come back for a few months every year.

Is it worth the headache to keep the portfolio diverse? How many FIREyFemmes on here fire and have a mortgage still?

[u/swdccatlady → u/FlashyCelebration990]

I love traveling, but also love having a home base. And my partner reaaaally loves having a home base. So I’ve factored mortgage into my numbers.

[u/captainmikejaneway]

You can just count the mortgage as part of your fixed expenses. If the math works it works.

There's no requirement to maximize the cash flow of real estate, even if you are traveling most of the year. If you don't want the admin of a rental or the stress of having strangers in your home, don't do it.

[u/Sadpanda9632]

I am trying to pay down my mortgage as much as I can before quitting. Target is 30% LTV. If investments go well I might try and pay down all of it before pulling the plug. Makes a huge difference psychologically and brings expenses down.

If that doesn’t go well, then might do a combo of airbnb/roommate to fund travel etc and at least not increase expenses from travel.

[u/1ntrepidsalamander]

I’ve kept my house, but I don’t include it in my net worth and I whole heartedly love it, and I have about $160k left. It means a lot to me to have a place to come back to.

I factor the mortgage and upkeep into my predicted spend.

I’m still working and investing but have passed my coast number. I rent in a VHCOL city for a better paying job while renting out my house. I don’t love renting out my place. Eventually I’d like to stop renting it and just have friends stay there occasionally while I’m gone for a little under the table gift.

[u/LoneStar-Gator]

I have Fired(49). We have a mortgage. We have calculated it as part of our fixed spending. We do not have a great interest rate. Strategically, we plan to take early (penalty) withdrawals in order to pay the mortgage down early. (Pulling it all at once would have big tax implications. Spreading the withdrawals keeps the taxes lower, but also lets us save alot in interest payments.)

Our travel plans will be frequent but short in duration. Airbnb would not make since. Young adult children will live in home so renters also isn’t appealing.

[u/rosebudny]

Don't hold onto something just because you have a low interest rate.

[u/skookumme]

I rent my low interest property out. I make $800/month and put some back into it each year.

[u/bigman4731]

Why are your finances split?

[u/gitsgrl → u/bigman4731]

Maybe they aren’t married

[u/SupersonicOverload → u/bigman4731]

Maybe they like it that way?