Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago on . Most recent reply

User Stats

5
Posts
0
Votes
Yair Tapia
  • Forest hills, NY
0
Votes |
5
Posts

Paying off your mortgage on a property...

Yair Tapia
  • Forest hills, NY
Posted

Hello BP'ers. My name is Yair and I was listening to a podcast and the guest said that they NEVER pay off a mortgage on a property. Can you share the pro's and con's to doing this? I thought that was the goal so that you can make more from the property.?  did they mean an investment property only or the property you actually live in?

thank you all in advance.

  • Yair Tapia
  • Most Popular Reply

    User Stats

    2,733
    Posts
    2,489
    Votes
    Nicole A.
    • Rental Property Investor
    • Baltimore County Maryland and Tampa Florida
    2,489
    Votes |
    2,733
    Posts
    Nicole A.
    • Rental Property Investor
    • Baltimore County Maryland and Tampa Florida
    ModeratorReplied

    There is no right or wrong answer to this. It depends on your goals and your threshold for risk. The podcast may have been talking about investment and personal homes.

    The argument for not paying them off is that if they are paid off, you have all this equity sitting there doing nothing for you. You could take that equity and purchase more properties. Also, when you have less equity, you're less appealing in a potential lawsuit.

    However, some want the equity to have significantly less payments each month. Without a mortgage, one only needs to pay for taxes, insurance, repairs, capex, vacancies, etc. 

  • Nicole A.
  • Loading replies...