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Updated about 5 years ago on . Most recent reply

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Louis Hamric
  • Rental Property Investor
  • Memphis, TN
5
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27
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Pay off home with roommates or invest in rental?

Louis Hamric
  • Rental Property Investor
  • Memphis, TN
Posted

I am trying to figure out what the best plan for me. I currently have 1 property I own that I rent out 2 rooms for a total of $1100 a month plus a 1/3 of electric and wifi. Additionally I have a rental property I inherited with my brother that I rent for $1450 a month. I am buying my brother out for 50k using a home equity loan against my personal home property. And that should leave me with an extra 35 left over in home equity loan. My home still has a 98k mortgage left and originally we planned on paying it off in the next three years. But we also have some stocks that I want to liquidate in the next month to take profit. I am curious whether it would be smarter to use the money to pay off my home sooner and take the 14.5% ROI or invest in a rehab home for rental for cheap in Memphis and get another property started for rent. Thoughts?

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5,037
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4,680
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Taylor L.
  • Rental Property Investor
  • RVA
4,680
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5,037
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Taylor L.
  • Rental Property Investor
  • RVA
Replied

If you can find another property worth investing in, I say do it. Build another stream of income rather than paying off low-interest debt.

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