Invest vs. Pay off Mortgage

[Meghan Chomut]

Hi! If someone has the $150,000 to repay the mortgage in full, should they do it? or invest it? Take a peek at the numbers and notes I put... what am I missing? 

https://drive.google.com/file/d/0B0FFPIOkOt3DemtaRXZ4NGc4R0FQVmczXzFiU3ZiVHNuZ0pz/view?usp=sharing

[Andrew Postell]

@Meghan Chomut a lot of what you are asking is somewhat based on who you are and what you are trying to accomplish.  I have customers who just simply can't deal with having debt.  It stresses them out too much.  What's the value of having no stress?  Pretty priceless to some people.  But if you are ok with the concept of having debt and one of your goals is to continue to purchase more properties then the choice might be to carry the note.  While many investors don't get to having 9 or 10 properties the ones that do are cash flowing about $3000 per month and some even higher amounts.  Some of those investors use that cash flow to pay down the mortgages that they carry at that point. Now they are using their investment money to pay down debt. It's also significantly easier to do owner financed transactions when you sell your property free and clear.   There are lots of reasons to go either direction.  Keep gathering information and make a decision that you feel comfortable with.