Which to pay off? Is a debt free prop better than $ in the bank

[Patrick Maynard]

I know paying off mortgages is covered many times on this forum, but all the OP's seem to have a different reason for posting.  I've had both my 2 family and personal home since 03.  We are able to pay off one and even possibly both.  Being self employed I'm not actively searching for another deal, but I'm keeping some dry powder just incase. 

My original thought is to pay off the rental ($45k) because the 700 month after expenses is a better return than .75% in a savings account.

After reading similar threads here, others would argue pay off your personal debt and let renters pay down the other mortgage.   We don't plan on moving although a nice addition is in the cards in a few years.  The rental I payed about 93k for and probably have about 10k personally stuck into it so I'm already getting a nice return.  Both mortgages are under 4%

[Jeffrey H.]

It just depends on your goals.  If you have no need to invest that money into additional properties then yes sure pay them off.  You could otherwise use that money to invest in additional properties which will contribute further to your returns and the tenants will pay for your debt service.

Both are okay and you will make money, but if you goal is to grow your investment portfolio, hold long term, and realize property appreciation then debt service is probably needed unless you have deep pockets.