Pay Off Mortgage On Rental Or Buy Another Rental With The Cash?
So I have 1 property worth $650,000 in miami beach, I still owe $232k on my mortgage, Im making bi-weekly payments and paying an extra $1000/mo and its leased for $3500/mo and maintenance + taxes are around $1300/mo. Im looking to invest $250k cash and potentially buy another condo for cash. Im wondering if it is better to pay off my mortgage on the 1st property and clear $2200/mo at that point or buy another property for $250k and probably clear much less. Is it better to keep the leverage in place in that situation or pay it off?
I have alot of low income high cap rate properties back in texas but this particular property I bought foreclosed and have seen around 25% appreciation so far in 15 months and miami beach just doesn't rent for high dollar amounts, but appreciates very well. Anyways just curious what you would do in my situation. Thanks