Pay off high interest loan or buy another rental?

[John Woodington]

Curious on others’ thoughts here:

I sold off a bunch of my stock trading portfolio in the last month and now I have $50,000 that I’d like to reinvest in some manner. I have a short term rental that has a mortgage on it for $50,000 at 8.75% interest. I could pay that off and wipe out the $600 a month payment on it and own it free and clear. Or I could buy another property. Or I could wait for the stock market to drop and buy back in there.

Hoping somebody on bigger pockets can help me out with my first world conundrum. Thanks in advance for any insights!

[Doug Smith]

Well, DSCR loans are in the upper 6%s now, so do both. Refi the current rental to reduce the rate and buy another...just don't overextend. We have a couple of clients that have done that lately and gotten themselves in hot water.