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Jamie Montpellier
  • Investor
  • Aurora, Ontario
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So my property has a positive Cashflow, now what?

Jamie Montpellier
  • Investor
  • Aurora, Ontario
Posted Aug 12 2014, 08:35

Hello everyone,

We have all one end goal in mind and that is to create wealth for ourselves and our families.  Now that you have found a property that cashflows and you are seeking to build your small real estate empire, what is the best use of that extra dough on your first property.

Option 1 : Use it to buy more properties?  Really???  At 100$ for one door, let's do some simple math, it might be awhile before I can move on to the next purchase unless of course we get creative with financing but let's assume we want to keep it simple for now.

Option 2 : Pay down the rental properties mortgage FASTER...  Really???  The cost of borrowing is so cheap at 2,6% that I think I can make my money work harder in the long run.  However, the home would be free and clear sooner, allowing me to pull it's equity to buy more properties.

What do you guys think?

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