Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 10 years ago on . Most recent reply

User Stats

42
Posts
21
Votes
Cory Damon
  • Investor
  • Austin, TX
21
Votes |
42
Posts

$30k Cash: Pay down mortgage or use to invest?

Cory Damon
  • Investor
  • Austin, TX
Posted

#askBP

I have $30k saved and ready to use.  Is there an advantage to using this to pay down my current (primary) mortgage and then getting an equity line of credit, or should I use this strictly as investment capital? 

The reason I ask is because... well I'm ignorant.  But also because I see the advantage of having an equity line of credit to pull funds as needed without having to go through an approval process each time.  So, I thought if I paid down my mortgage I would have more available to me through the line of credit.  

Thanks in advance for your insight and opinions.

Cory

Most Popular Reply

User Stats

100
Posts
59
Votes
Allen Clark
  • Investor
  • Seattle, WA
59
Votes |
100
Posts
Allen Clark
  • Investor
  • Seattle, WA
Replied

I struggle with this as well. I have two investment properties where I have between 30 and 50% equity today. Fundamentally I hate debt so I have an internal struggle with not accelerating debt payments even though I know it may be smarter or more efficient to keep the cash ready for future investments. 

There are two more properties that I have my eye on and I want to be ready to buy them when they become available. So, for now, I keep the cash...

Loading replies...