Payoff Mortgage or buy Investment property

[Ziaur Zahid]

Hello,

I am in greater Los Angeles area. I own a property and this is my primary residence. I have some money for investment. The kind of investment property I can buy cash down are far away and Bakersfield has some good listing within $200 k price range. The rental is not great and a cap rate of 6% is the max you can earn there. My dilemma is why invest and go through the headache when I can use this $200 k to bring down my mortgage of primary residence. I am have about 10 years before I retire. What do you think? Your help/thoughts will be much appreciated. Thank you.

[Steve Vaughan]

We need to know what rate and term it is that you are debating paying off @Ziaur Zahid.  An 18.6% mortgage from 1982?  3.2% fixed from a few years ago?

I'm accelerating anything that is adjustable, callable, bothers me or is even fixed and above 5%.  I have 19 doors paid off, but I don't accelerate long-term fixed resi debt below 5%.  

Good job either way having this option!