Pay off home, duplex or save?

1 Reply

Trying to figure out what the best path is to FI/RE. My wife and I make around $190K/yr and currently live in a home that we don’t plan on leaving anytime soon. If we did leave, we would rent it out anyway. Our SFH is worth $360K with $275K left on the principal. Our duplex is worth $350K with $252K left on the principal with current cash flow of $700/mo ($350 per side). My question is do we focus on paying off our home, the duplex or save for another investment property? I️ like the idea of attacking the duplex principal and paying it off as quick as possible to generate $2500/mo in cash flow, but saving for another rehab rental is attractive too. SFH is 30yr/3.625%, duplex is 30yr/4.25%. Any suggestions are greatly appreciated!

It all depends, what is your risk tolerance? Most people in the cash flow realm think its dumb to have something paid off and why save if you can invest smartly and limit the downside? It all comes down to if the money could be out there making more money than it would just sitting in savings or as equity in a property. You have to determine what amount of equity works for you maybe keeping properties 50% liquid or continue to pay down but save 20% for another down payment. Us married men are usually better off by starting with what our wives want, LOL.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.