Pay off loan or buy another property?

[Ghenia Flewellyn]

I'd like to know what my BP folks would do in this scenario. I owe $25,000 on 1 of my properties. I'm paying $220 a month on the loan (and an additional $90 in escrow for taxes so total payments are about $310). 13 years left on the 30 year loan. Would you pay off the loan and increase your cash flow by that $220 per month, or would you use that 25K with some additional funds to purchase another rental income property? My investment strategy is buy and hold. Cashflow. I'd love to hear your thoughts...curious. Thanks guys.

[Corby Goade]

I always look at a scenario like this in a specific way; can I use that equity to create another $220 per month in cash flow in a new property? If so, why wouldn't you do that? You'd have the same, higher cash flow number PLUS an extra property building equity for you simultaneously.