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Justin Joseph
  • San Diego, CA
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Help! Which mortgage should I pay off?

Justin Joseph
  • San Diego, CA
Posted Dec 4 2013, 09:20

Hi Everyone,

I think I have my answer for myself, but I wanted to see if I could get any opinions and justifications from the Community.

I have two financed properties I own (amongst a few others) which I am considering doing some additional principal payment on in order to build up equity.

One property I am hoping to sell in the 3-5 year timeframe. It is in Texas in an area expected to see heavy growth and at least moderate appreciation. Before anybody jumps on me for investing for appreciation, the property Cashflows just fine (currently ~$180/mo)! haha

The other property is a long term hold in Indiana which I have no intent to sell in the short term. It Cashflows wonderfully (~$200/mo on just over half the investment of the Texas property) and I havent had any problems with it to date.

So my question is, if you were going to do some additional principal payments (forget whether or not that makes sense and just assume it does and you are going to do it) which would you make additional payments on? The Texas property would build equity for the time of the sale, the Indiana property would go towards owning the property free and clear.

All opinions and questions appreciated!

Thanks!

Justin

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