Updated over 7 years ago on . Most recent reply
Should I pay off my property
What’s up BP,
I’m 24 (25 next month) just closed on my second buy and hold multiunit rental last month.
Around this time next year I’ll almost certainly be in a position to pay either property off while still
maintaining a solid security savings for repairs and life. Just wondering if anyone had any thoughts or advice on paying off a mortgage outright with cash.
Property 1 ( Loan term 20y- in year 2 of that term)
Property 2 ( Loan term 30y- just started year 1)
Both fixed rate around 5%
Most Popular Reply
#5 All Forums Contributor
- Plymouth, MI
If you are cash flowing positive before you pay of the property, then there are answers. Both are the same...just spelled differently:
1 - NO!!
2 - You are already paying it off. Well, actually, your tenant is for you. That means you are not using your money to pay it off. If you pay it off with your own money, then you have to recover all that money before you can show any profit. Why would you do that? There is no advantage to you paying off your property. In fact, you are losing the advantage given to you by your tenant.