Paying off rental mortgages forecasting

[Account Closed]

We currently have a portfolio of 14 single family rentals. We are curious as to how the best approach to paying these off as quickly as possible. Do we pay lowest balance first? Some are paid off is 3-5 years, some 15 to 20.  We are looking to retire in the next 3 years and are trying to get them paid off for maximum cash flow. Thanks!

[Andrew Johnson]

@Account Closed Pay off the highest interest rates first.  That's the easy answer to the question.  The reality is that you might want to keep mortgages with a low interest rates because you're getting to write-off that interest.  Even if you're retired you'll still get taxed on the cash-flow and mortgage interest and depreciation are a "friend" in that regard.  If you need to pay down mortgages and all of the interest rates are the same I'd pay down the longer-life mortgages first.  Again, just so you have something getting written off on those properties (against the income) for the next 3-5 years) and you can keep the long-term mortgage interest write-off for the 15-20 year mortgaged properties.  I hope this helps.