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Updated over 1 year ago on . Most recent reply

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Edward Heavrin
  • Louisville, KY
9
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25
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Paying off a rental aggressively. Pros & Cons?

Edward Heavrin
  • Louisville, KY
Posted

I've got 5 units (Duplex & Triplex) that I've owned for 4-5 years now. currently cash flowing $1500 total. 

Since I'm really busy with my job, I've been strongly considering paying off each one aggressively, which would increase cash flow by 2k which would be similar to owning another 5 units, but without the headache of 5 more tenants and the issues that inevitably arise with owning more properties. 

Obviously I could use the money to buy more more more, but there's something attractive about owning the rentals outright, then saving the additional cash flow to get the next one and so on. 

Anybody here regret paying off a rental or have any advice? 

thanks, 

Edward

Most Popular Reply

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8,437
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Bill B.#3 1031 Exchanges Contributor
  • Investor
  • Las Vegas, NV
10,322
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Bill B.#3 1031 Exchanges Contributor
  • Investor
  • Las Vegas, NV
Replied

I paid mine off. With 12 rentals I have a monthly cashflow of $20k/month. I could have gone bigger but I don’t need more. And during a busy time I work an hour a month. 

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