Strategies with paying off properties
Hi everyone,
I just purchased my first house and am excited to get things started with it! I am interested in purchasing more properties in the future to use as investment properties/rentals as well. One question I had for everyone was how fast you worked to pay off your first house vs. save for another one to purchase/add to your portfolio.
Any advice/info would certainly be helpful!
Without leverage, real estate returns are no better than returns on any other asset class. The key to growing wealth is to use leverage wisely to deliver larger returns.
Quote from @Max Matthias:
Hi everyone,
I just purchased my first house and am excited to get things started with it! I am interested in purchasing more properties in the future to use as investment properties/rentals as well. One question I had for everyone was how fast you worked to pay off your first house vs. save for another one to purchase/add to your portfolio.
Any advice/info would certainly be helpful!
Just to expand on what @Greg Scott said:
What is your goal? If it is to create the greatest wealth then like he said you want to leverage. If you just want to have the peace of mind being debt free and have more cash flow sooner then quick payoff MAY be your strategy.
#3 Managing Your Property Contributor
Depends on your goals. If you want to buy more properties and your debt to income ratio is okay, save the money to use as a down payment for the next property and let the tenants pay off the mortgage over time.
@Max Matthias, I think it's nice to have more cash in your control. So what that means is leveraging your houses to some degree so that you have a balance on them... that's just my personal preference. The reason being the case is if you have a fully paid off house then that house becomes a target to others who may want to sue
