My first rental property is paid off!

[Mark Ferguson]

I had the bank wire the money today to pay off my first rental that I bought in Dec 2010. I paid $96,000 for it and put 25% down. I have been using the cash flow from my other 7 rentals to pay down this mortgage. Now I have an extra $400 a month to go towards paying the next one off!

[Alex Craig]

Mark -- that is great. I have told many investors that is the way to go. I think a good strategy is to pay several off, then use the equity in those houses to buy more houses...then pay those off too.

Personally, I use my 30 year loans to cover the little cash flow I get on my 10 year mortgages and 15 year mortgages.

There are a lot of gurus who preach "create the lifestyle you want" by adding cash flow leveraged real estate to your income or even worse, quit your job and replace with leverages loans. In my opinion, that is dangerous.