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Updated over 7 years ago on . Most recent reply

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Marc Jackson
  • Rental Property Investor
  • Panama City Beach, FL
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Which property should I pay off first? Need help with analysis.

Marc Jackson
  • Rental Property Investor
  • Panama City Beach, FL
Posted
I have 3 rental properties and trying to figure out which one I should pay off first. I want to accelerate the pay off and put any extra amount all towards one. Trying to figure out which makes the most sense. Can you guys help? Here are the property specifics: Property 1: Property value $450K Owe $185K @ 5.25% Rental income gross revenue = $46K Approximate net income (with zero mortgage) = $35K Short term vacation rental Property 2: Property value $300K Owe $171k @ 5.25% Rental income gross revenue = $35K Approximate net income (with zero mortgage) = $19K Short term vacation rental Property 3: Property value $210K Owe $100K @ 3.25% Rental income gross revenue = $14K Approximate net income (with zero mortgage) = $11K LONG term rental (same renter for 5 years)

Most Popular Reply

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Joe Villeneuve
#5 All Forums Contributor
  • Plymouth, MI
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Joe Villeneuve
#5 All Forums Contributor
  • Plymouth, MI
Replied

You left out the most important numbers:

1 - What are the current mortgage costs/year for each?

2 - What were the original loan amounts for the 3 properties

3 - How many years are left on the original mortgages?

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