Urgent question pls help

[Vik Ari]

hi,

i bought a rental condo for 160k and its a down in price around 130k. its rented out and it covers my mortgage, taxes, fees and costs. I was looking to refinance to lower the month payment on my mortgage, but I though if I pay of the loan, then it will be better for me, i can get better return and sell in future quickly. Can someone help me understand when is a good time to pay off the loan and when it is not?

Outstanding loan: 120k
Rent: 1250/mnth

vik

[Nathan Emmert]

Put it on the market... get as much as you can and bring whatever you need to closing to get it off your hands. You don't want $120,000 in a home that's only generating $7,000 a year in cash, that's a 6% return.

Instead take that $120,000 you have and leverage it into $480,000 of property (75% LTV). That should generate $20,000 or more of cash each year if you invest in solid properties.