I put at least 20% down on each. I have two with 5/1 ARM's and two with fixed rate, 30 year mortgages.
The mortgages are roughly $36K, $70.5K, $75K and $162K.
I'm retired with a pension and I have 2 PT jobs. My wife is still working FT.
I also have a HELOC with about $20K on it.
I'm 50 years old. Currently, I'm paying a tiny bit extra on each mortgage. I'm building up a cash reserve for each property. And, if I had an expensive emergency, I can get the funds to cover it.
So, I'm trying to figure out my best game plan. Do I try to pay off the $36K mortgage quickly, say in 2-5 years?
Do I just continue to pay a little extra on each one.
Do I save so I can pay cash for a BRRR house or maybe a $45K renovated, move in ready house or do I take that same money and just pay off the $36K mortgage?
@ Caleb Heimsoth, one thing I forgot to mention is that I'm currently saving roughly 60% of my pension. I just started one very PT job that pays not much, but I can put all of that cash either in savings or pay down a mortgage.
Part of me says if I currently have close to $17K in annual positive cash flow, after expenses and vacancy's, repairs and cap ex held out, that I should pick up another 2-3 house to get that cash flow over $25K.
The other part of me says to pay down and off the $36K mortgage and HELOC, and then get more rentals, perhaps paying cash for them. Or, close to paying full cash if house is $45K or so.
Get as many homes as you can afford, then start to pay them down. I just paid off my first property this year and love how much extra cash flow that has created. I am all about simplify life as you get older, especially if you have kids. I want to leave a large paid for portfolio to our kids, not a mountain of debt.
You could always lever up but you don't have the luxury of time or income to support you in case things go awry. At most, I would add one or two extra properties that you can afford and go from there.
A bird in hand is worth two in the bush!
A total debt of 343k doesn’t seem over extended. A lot of people have that much debt on their primary residence.
I’d say pick up 2-3 more with mortgages then start paying them down.
OR if you want the higher level of involvement, build cash to start using the BRRR strategy.