Cashing Out

We sold our last rental property today and used the money to pay off our current house. We bought that rental in 2019, paying a hefty down payment of more than half of the asking price. We plowed every dollar we made from renting the place into expenses and paying off the mortgage. Once that was done (it took six years) we cleaned the place up and put it on the market.

In case you are interested, we paid $150,000 down on a house that cost us $250,000. All of the rent collected went to paying off the loan. Sale price was $310,000. We had to put on a new roof and some other repairs, paid real estate commissions and closing costs that totaled $35,000.

Cost of $250,000, sale proceeds of $275,000, meaning that we made $25,000 in profit after holding the house for 6 years. When you consider that the only money out of our pockets was the initial $150,000 down payment, we actually wound up making $125,000 return in 6 years on our initial investment. That gives us a rate of return of 10.66%.

Now the house I live in is paid off, and we no longer have a mortgage payment. I am also out of the landlord business. It also means that I no longer NEED a job. Now I have options. I am considering dropping down to PRN (as needed) basis- meaning I can work 1 day a week, full time, or anything in between. My choice.

That gives me options with my shitty, shady employer. This is what my wife and I refer to as “fuck you money.”