Posted by Bill K. (AZ) on April 29, 1999 at 14:37:46:
I met you on the shuttle on the way to the convention in Dallas. It was a pleasure talking with you.
I’m not sure that I understand your problem. You have a 4-plex that is paying for itself. So, let’s take that out of the equation. You were living comfortably on $14,000/yr before the flood. The rental of farmland is paying you that amount. So, let’s take the farmland out of the equation.
The flood caused you to incur an additional $37K in debt secured by your home and the 4-plex. You don’t say when the SBA disaster loan must be repaid, but at 4% interest, I’m assuming this additional debt is costing you $200/mo or $2,400/yr. In addition, if you want to pay off your credit cards in a few years, you need to make payments of about $600/mo or $7,200/yr. So, you need an additional $800/mo or $9,600/yr to cover all of these costs.
You don’t say whether or not your mutual funds are in an IRA or not, but if they’re NOT, they are generating about $9,000/yr that you can access. That will just about cover the additional costs you are concerned with. So, I don’t see a dire need to get a J.O.B.
Depending on your tax situation, you may benefit from a home equity loan as the interest payments are tax deductible whereas the credit card interest payments are not. Hence, the government will help you make some portion of the payments.
I hope this helps.
Keep your chin up, and keep looking for properties on YOUR terms. I wish you well.
Bill K. (AZ)