@Shaun Dillon whats up man i get this question a lot in my team, Have you thought about chucking out the mortgage and then going into the rentals? get rid of your biggest debt 1st then make profits you know? If you like i know a quick clip that will explain how to chuck down your mortgage faster, DM me if your interested man and best of luck to you friend
At interest rates at historic lows. I would buy as much property as you can and pay down your debt over time with OPM. Let me know if I help in any way. I help clients find rental properties in Central Ohio.
Updated almost 3 years ago
With interest rates at historic lows. I would buy as much property as you can and pay down your debt over time with OPM. Let me know if we can help in any way. We help clients find rental properties in Central Ohio.
@Shaun Dillon If you're looking just at the numbers you'd likely be getting more than a 4% return on a new rental property and so you'd be better putting your money towards an investment property. However, its a personal preference and if you'd feel better paying off your mortgage to decrease your debt so you sleep better at night thats not necessarily a horrible move. Its good to have options!
Shaun, I'm a Worthington guy, lead a meetup in Dublin and have helped many newbies. Without knowing what amount of time you have available as well as more personal information about your circumstance, no one can give you a definitive answer but I will give you a general answer that will hopefully help but with the understanding that you could have circumstances that make the following useless or harmful to you.
In general, low interest rate debt should not be paid off if doing so uses funds that can be used to create/generate income and/or equity that exceeds the funds being used to pay down the mortgage. I would suggest to you that those dollars are better spent on real estate investment education (beware, however, that much of it is almost worthless and greatly overpriced) and on marketing and on purchasing real estate. I strongly urge you to get a good mentor as well.
So, I would suggest that you save those dollars while you explore real estate and determine if it is right for you. If you approach it cautiously and with good assistance your chance of financial gain should be high and the likelihood of losses should be very low.
Make it easy on yourself and just look at the numbers. What % returns will the rental property bring in, and compare that to what you are paying out on the mortgage. If the rental property returns are higher, go for it. But if they are lower than what you are paying on the mortgage, pay down the mortgage.
Just focusing on the numbers takes a lot of question out!