Pay off or buy during this time?

Question

Are most people just paying down their properties at this time, or still trying to find deals? I have some money from a real estate sale and not sure if I should put it towards paying off one of my properties creating more cash flow or buy another property even though they seem to be high in price at this time. Any thoughts?

Jon K. · Answer

I'm still buying as fast as I can get the deals. Interest rates are still stupid cheap and I'm investing for cash flow, not appreciation.

Account Closed · Answer

I think Jon's perspective is excellent here, and I think this answer depends a lot on your long-term goals. Are you looking to grow your number of doors, or would you be satisfied with the income your properties are providing? Personally, when the numbers make sense, I'd say to invest, invest, invest! Just take the time and effort to run the numbers carefully. Overall, this is a good problem to have!

Torrey Moe · Answer

I must  say I respect this question and would imagine this is a common concern right now.  Is it arrogant to say that we should for sure assume that there will be no crash and that we should just buy, buy, buy and expand doors as quickly as possible?  I'm no expert at this point, but it seems healthy to ask the hard questions.  Having listened to many experts, however, it does seem that buy, hold, refi, expand to more doors, etc is the answer generally, though it never hurts to have healthy emergency savings... Hold the capital and you can always pay down the properties if needed down the path, but why do that at this stage?  Capital and cash flow need to balance out as exciting as chasing cash flow is.  As an insurance agent cash flow has always been my primary focus, and it's been a winning decisions, has fed my family nicely and allowed me to take risks most people can't, but capital is important too, and I'm beginning to learn a lot about the key of either finding capital or growing it, but ideally both.

Pay off or buy during this time?

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