Should I pay off my home or buy more rentals?
Hello Everyone at Bigger Pockets!
I currently own 5 properties in Houston TX all residential rentals. I have a mortgage on only one of them. The home with a mortgage I am currently selling after sale I will have rough 300k take home the same amount I need to pay off my current non investment home I live in.
Would it make more sense to pay of my home? Or purchase two rentals at 150k each in Houston to rent them out for $1500 each which is 36k gross 20-24k net.
I would love hour suggestions and input. I know no on in my circle that buys and holds time to change that. V
Most Popular Reply
I'm not a fan of paying off your primary residence mortgage unless you feel like you are going to live there for decades, or you have some financial hardship where you want to reduce your overhead. If I had $300K, I'd buy 8 $150K rentals w/ 20% down, then I'd start snowballing all ten of your rental properties mortgages (one at a time of course), until they're all paid off. Then you can decide if you want to snowball your personal residence. After you snowball the first couple of properties, you'd be surprised how quickly you can get your portfolio paid off. Quality problem to have, my friend!