Updated over 6 years ago on . Most recent reply
Dilemma, paying off house or invest.
I'm trying to get started investing in real estate. Currently i have 100k saved and own a home that I only owe 44k. I thought about paying the house off and using the rest to buy an investment property. If I pay the house off I would be able to save 50% of my paychecks from work. The second option is I can keep the mortgage and use the 100k to invest.
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Theresa Harris
#3 Managing Your Property Contributor
Pro Member
#3 Managing Your Property Contributor
If you were to invest the 100K to buy an investment property, the extra cash from that investment can be used to pay down your home. The rent would cover the second mortgage, taxes and insurance on the rental property along with the other expenses. Look at the numbers to make sure they work.