Updated over 7 years ago on . Most recent reply
Pay down mortgage or save the cash?
I am about to purchase my second property with almost 100% financing & equity from my first property. Goal is to buy a third a year or two after that. Question is do I use any extra money I have to pay down the mortgage faster? Or save the money for a downpayment on property #3?
I know 100% financing isn’t ideal. Especially in this market.
Thoughts are appreciated!
Most Popular Reply
Most people would not agree with my current statement but real estate is a tax shelter haven. One of the best ways to legally prevent Uncle Sam from sticking his grubby hands into your cookie jar. If you pay off your property quickly it no longer become a liability but an asset. Uncle Sam loves taxing you for your assets. Don't let him do that.
Save money for the downpayment on your 3rd property. Rinse and repeat.