Since I Can’t Find Deals, Should I Payoff Mortgage

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I’ve been able to purchase 5 deals since 2016.  2 flips, 3 rentals.  I developed the confidence to begin scaling the business toward the middle of last year, but have not been able to find good deals in the Chicago market since fall 2017.  So I’ve been sitting on my cash.  We also live below our means so we are continuing to stack additional cash which we would ordinarily use for a deal. Although we are invested in the stock market, I’m not super excited about continuing to throw a lot of money at it, because stocks are a bit overpriced, and the consensus is that the market is headed for a correction.  

At this point, I’m wondering if the next best move is to start using extra cash to pay down my 4% home mortgage.  This is essentially like getting a guaranteed 4% return on my cash.  It also gives me a new project and means to stay motivated.

When the markets provide opportunity again, I can always cease the aggressive paydown on my house and use a HELOC to gain access to the equity to pull out cash if needed.

Is anyone else considering this? What would you do?

Some conservative Americans have no mortgage after reaching age 50. Those still refin and taking out a 2nd after 60 head for a disaster during their golden years. CD now pays close to 3% interest.


@Demetrius Davis - I thought of this too.  Even though there are no deals now, I still want to buy properties in 5-10-15 years.  And I think rates are going to go up and I would rather keep my cash available and pay my mortgage on a low 30 year fixed 4.5% loan.  

When the deals come again the rates will be much higher