Review my properties and next steps on my jourmey
I have 2 rental properties.
Property 1
1977 valued at $290,000
30 year note 3.875% purchased 2016 for $130,000
monthly payment $363
Owe $60,000
Rent $2000/month
Annual taxes $$3500
property 2
1998 half a duplex valued at $575,000
Purchased 2017 $340,000
30 year 4.125%
owe $220,000
Rent $3600/month
Property tax annual $10,000
i dont currently pay any extra in these properties. What if anything would you recommend I do?
I Work a career type job taking home $15,000 per Month with minimal Expenses so have some optionality on what I do either excess cash (buy stocks, index funds, pay down real estate, etc)
Most Popular Reply
Hi @Steve S. I wouldn’t rush to pay them down early given how cheap that debt is; the optionality is more valuable than eliminating 4% loans. If anything, I’d focus new capital on higher-return opportunities rather than concentrating more equity in already-stable assets.
In our investing club, this is exactly where small, diversified co-investments shine. Instead of sinking excess cash into one property or overpaying down debt, we place smaller amounts across multiple deals, spread risk, and let the portfolio compound without overexposure to any single asset or market. With your income and balance sheet, maintaining liquidity and diversification is likely the biggest edge you can preserve.