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Buying & Selling Real Estate

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Jack B.
  • Rental Property Investor
  • Seattle, WA
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Pay off existing rentals or get ready to buy more deals?

Jack B.
  • Rental Property Investor
  • Seattle, WA
Posted Jan 16 2019, 10:58

I could have 6K a month cash flow after expenses from four rentals if I paid them all off. I can pay them all off and have enough to buy a small house outside the area to live in or buy an RV and travel the country. I don't NEED the cash flow now. I planned on grinding it out for at least 3 more years, possibly 8 if there is a downturn (likely) and buying opportunities are available.

So why am I asking then you say? Because once I buy more rentals I won't be able to pay them all off without working a lot longer. There is a point where having that kind of money in paid off real estate is beyond good enough. Sometimes (like today) I feel like I want to drop out of the rat race and go live on acreage and just live off 2K a month (that's luxurious for me...) and figure out other things in my life better. Achieve mastery in other areas. But at the same time, leaving money on the table is another consideration. That's why I planed to keep working originally. Adding massive buffer. Plus if I keep buying rentals, the rents will go up over time far faster than the expenses such as insurance and taxes. Right now between principal pay down, cash flow (after all expenses) I clear 30K a year. It was much higher before but I re-balanced my portfolio. Maybe someone here has that one magical point that will sway me to one side or another. I just keep thinking to myself though, it's not always about more money, so much as keeping what you have. What if the bank calls the loans on my mortgages, etc. I figure have a nice 7 figure net worth, maybe I should cash out my chips and leave...

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