Scenario:
-You own a portfolio of 30 properties, producing a net income of $700k per year. It’s a stable real estate market. These units are a mix of residential and commercial units.
-Your mortgage is a fixed rate 4.75% interest with a balance on these properties of 2.4 million (monthly payment is 25k/month and 10 years left on the loan paying this min payment) Original loan term was 15 years.
-You have 1.2 million in a bond mutual fund (used as a savings account) Returns on this account is about 3-4% but any interest is tax free state and federal because it’s a bond mutual fund dedicated to the state in which you live. So, it might make the return 5% on average over the long term.
-You also have $750 k in various stock based mutual funds that are through work 401 k type investment vehicles.
-Your 50 y/o.
-Besides this mortgage debt you are 100% debt free.
How would you handle this?
Submitted February 18, 2019 at 11:41AM by Hillbilly-Nerd-Talk http://bit.ly/2GvPxKn
