Paying back my partners
I own 3 duplexes with my parents. We bought the last 2 in May 2012 and August 2012. All 3 duplexes are paid for, but they paid for the last one themselves because a lot of my cash is tied up from the second property. I wanted to pay my parents off quickly, so the current plan is I'm going to make 4 payments of $5000 every 3 months over the next year. So far I've made 1/4 payments. I plan on buying my first multi family on my own this summer, so one of my major priorities is my cash building back up. I was driving home from work today and I was thinking I could accumulate so much more in the next year if i were to reduce my payment to say $500/ month. The down side of doing that is then I wouldn't be cash flowing from this property for about 2.5 years. It kills me that I could potentially be earning more on my money if I were making smaller payments. At the same time, I really want to get these payments off my back. What do you guys think?
Here are the #'s for this duplex:
Monthly Income= $1370/2= $685
Property Taxes= $2300/2=$1150/12=(96)
Insurance= $292/2=$146/12=(12)
Utilities= $480/2= $240/12= (20)
Vacancy(5%)= (34) Maintenance/Repairs(10%)=(69)
Total Expenses= (231)
Monthly Cash Flow= $454