Real Estate Broker · Valdosta, GA · Member since 2017 · 45 posts · 20 votes
7y
@Cole Farrell I think it all depends on what you want to accomplish. Are you trying to scale your business? If so, then you should use your positive cash flow to find new deals. You're still paying done your note as you go, because your "positive" cash flow is after PITI.
Real Estate Broker · Valdosta, GA · Member since 2017 · 45 posts · 20 votes
7y
@Cole Farrell I think it all depends on what you want to accomplish. Are you trying to scale your business? If so, then you should use your positive cash flow to find new deals. You're still paying done your note as you go, because your "positive" cash flow is after PITI.
Lender · Easton, PA · Member since 2019 · 90 posts · 32 votes
7y
@Tommy Cangelosi Yes, I am trying to scale the business. That does make sense. However would it be better to pay off the mortgage quickly in effort eliminate the mortgage payment for increased cash flow, or leave it as you’re saying with regular payments and save extra for new deals. For example if I was receiving 500 dollars a month in cash flow with a 500 mortgage, is it better to eliminate the mortgage to have 1000 cashflow or to continue the 500/500 and buy another property sooner?
Real Estate Broker · Valdosta, GA · Member since 2017 · 45 posts · 20 votes
7y
@Cole Farrell Sorry it took me so long to get back to you! In my opinion, it is better to leverage yourself and buy the next property. I would rather own 3 properties and owe some on each THAN have one paid off comparable property.
Hi! I often have the same question for myself...what if my goal, instead of increasing number of properties, is to increase my cashflow/passive income as quickly as possible? If the mortgages I have are 20 or so years away from being paid off, but I'm looking for a way to increase my income (increased above and beyond my current positive cashflow) in the next 10 years--is it better to pay down mortgages more quickly or take on more leveraged properties?