Cash flow vs Principal paydown

[Craig Asplund]

Hi All!

I've seen great capital gains in the few years and I'm structuring my next move as follows: Sell my current properties (4/1+triplex) and 1031 into a small multiplex. Current properties have Cash on Cash return of $28k (~25%) and the loan principal is being paid down ~$6k annually on a 30 year fixed. Getting into a bigger loan, I could see the principal on a 20 year commercial loan increase to ~$25k annually but the cash flow is terrible on everything I see for sale. I have never considered taking a hit on my cash flow for increased principal paydown, especially since the housing market is so high today but seem stuck. Your input is always appreciated!

Prosperity,

Craig