Pay down your mortgage or buy a second rental; what do you do?
Posting this for the BiggerPockets Investor Brief newsletter, your replies might end up in Thursday's edition.
You've got a chunk of cash sitting there. Do you pay down your existing mortgage or use it to buy a second rental? I want to know what you'd do and why.
Drop your answer below, the best replies get featured in the next Brief.
Most Popular Reply
I paid off my first two rentals when I got started investing in real estate 11 years ago. I was so proud of myself to be debt free. However, that was the dumbest financial decision I’ve ever made. But I was a Dave Ramsey guy at the time, so that was my excuse. Lol. Once I read Rich Dad and learned about the power of leverage, it was game over with how I invested from then on with real estate. I would put as little down and recycled equity over time to scale up to buy as many rentals as I could with as little out of pocket. I’ve hit my cashflow goal so I’m now paying cash for some properties vs taking on more loans. I have around 2.5 mil in good debt now and sleep like a baby. My tenants can pay it all off while I sleep, so it doesn’t bother me at all.