Skip to main content
No. of Recommendations: 0
Thanks IP. I'd pictured being mortgage free in retirement, but you're right, it could be a sensible option.
Print the post Back To Top
No. of Recommendations: 3
Is there a more efficient way to fund the purchase, such as taking out a mortgage and then paying it back from my IRA over a few years?

This is a fabulous time to be getting a conventional 30 year FRM. You are still working and have a W-2, which makes it easier. So as long as you meet the ratios for income to debt you should be good to go.

I would be hesitant to pay it off from your IRA. The interest rate is so low that you are likely to do better with investments over the long term than paying off the low rate mortgage. But I recognize debt as a tool to use, yes even in retirement, and am not uncomfortable with having enough assets on hand to pay it off while keeping debt.

We have two mortgages, one that we got last year after being retired for two years. I view them as inflation hedges as the fixed rate will not move while inflation is bound to increase after all the influx of money from Federal pandemic relief. For some, being debt free is an emotional need and that is OK too, but I would rather have lots of money on hand to pay down debt than zero debt and little money.

What works for me may not work for you. I don't know your specifics.

IP
Print the post Back To Top
No. of Recommendations: 0
Thanks IP. I'd pictured being mortgage free in retirement, but you're right, it could be a sensible option.
Print the post Back To Top
No. of Recommendations: 0
I've become a real estate investor in these past 3 1/2 years. I'm up to having 14 rental units. We have 9 mortgages all together. I'm comfortable having these. I'm paying them down and I keep cash reserves for stuff that may come up.

I should have 20 or more rentals by years end. We plan to use sellers finance for 1-2, but if we get mortgages for the rest, that will basically top us out with both the missus and I having 10 mortgages each.

So, since I plan to keep growing, I'll have to get more creative. I may use more seller financing, private money, commercial loans and so on.

Fool on,

mazske
Print the post Back To Top
No. of Recommendations: 0
I should have 20 or more rentals by years end. We plan to use sellers finance for 1-2, but if we get mortgages for the rest, that will basically top us out with both the missus and I having 10 mortgages each.

How are you insuring that your tenants can pay given the current conditions?

IP,
not making any moves to buy unless the situation is beyond perfect
Print the post Back To Top
No. of Recommendations: 0
To date, all tenants except for one who is getting evicted have always paid and never even been late. We shall see if that continues. I do try to maintain a healthy cash cushion so if I had to cover all mortgages for 6 months, I can do so.

Fool on,

mazske
Print the post Back To Top
No. of Recommendations: 0
To date, all tenants except for one who is getting evicted have always paid and never even been late.

So apparently, the state that property is in doesn't have a 'no-eviction' order?

AJ
Print the post Back To Top