Pros/Cons to paying off rental property early
Hi Everyone! I have a rental property with the following details:
- 210k loan balance
- $2500/month rent
- $6000/yr in income after PITI and costs today
If I pay off the remaining balance on the loan, I will have over 10% cash on cash return which sounds amazing. It is already cash flow positive today, around ~$600/month. My overall investment goals right now are to create passive income, so this would fit in with that. Is there anything I am missing with my considerations? Of course there is the option to invest the 210k in other real estate opportunities, but I may be hard-pressed to find something above 10% return. Thanks in advance for your thoughts.