Updated almost 5 years ago on . Most recent reply
Pay down Mortgage on Rental
I have a rental with significant equity. Have idle funds that I am debating using to pay off the mortgage on the rental property. Any thoughts on the pros and cons. Property cash flows as is.
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Joe Villeneuve
#5 All Forums Contributor
Pro Member
#5 All Forums Contributor
- Plymouth, MI
NOOOOOO. Why in the world would you add to the cost of the property by taking money ut of your pocket, to pay for something the tenant is already paying for? Also, if I had a lot of equity in a property, I would be selling it bedause your equity is actually dead cash, and the value of that cash goes down with every increase in that equity.